Entrepreneurship is a journey filled with highs and lows, and few stories illustrate this better than that of Aaron Rokstad. As the third generation in his family’s power industry legacy, Aaron took his own path before ultimately founding Rokstad Power in 2008.
His story is not just one of success but of perseverance, resilience, and valuable lessons that every entrepreneur can learn from.
Read: Building Resilience in Business: Lessons from Aaron Rokstad
The Power Industry: Building Resilience in Business
The power line industry is an often-overlooked yet critical sector that keeps modern infrastructure running. With growing demands from AI, data centers, and electric vehicles, the industry is under immense pressure to expand.
However, a significant labor shortage—estimated at a 50% shortfall—poses a major challenge for companies like Rokstad Power.
Entrepreneurs in any field can relate to the difficulty of scaling a business when resources, whether financial or human, are in limited supply.
Launching Rokstad Power: Betting on a Vision
Aaron’s journey to founding Rokstad Power wasn’t a straight line (pun intended). After working in the software industry, he initially resisted joining the family business but eventually embraced the industry and took a leap of faith.
With a $100,000 home equity loan, he built Rokstad Power into a multi-million-dollar enterprise. His experience underscores a crucial entrepreneurial lesson: success often requires betting on yourself, even when the path is uncertain.
Overcoming Adversity: The Hostile Takeover
One of the toughest challenges Aaron faced came in 2023 when Rokstad Power sought financial restructuring. A private equity firm initially appeared to be a strategic partner but instead took over the company by acquiring its debt and forcing foreclosure.
This devastating turn of events highlights the risks of financial partnerships and the importance of understanding deal structures and contingencies before bringing in outside investors.
It also underscores that such situations are not always a reflection of the entrepreneur's decisions or capabilities, but rather a result of unforeseen financial maneuvers and corporate strategies beyond their control.
Lessons for Entrepreneurs
Aaron’s story is filled with valuable takeaways for business owners:
Be Strategic with Financing – Alternative funding options like factoring and vendor financing can help businesses navigate cash flow challenges. I would also encourage entrepreneurs to seek unrestricted grant funding or micro-loans.
Know Your Investors – Not all capital is created equal. Understanding the intentions and long-term alignment of financial partners is crucial.
WeWork and SoftBank are a prime example of how not all money is good money.
WeWork was valued at $47 billion, fueled by billions from SoftBank. But when things got messy—financial issues, leadership drama—SoftBank pulled back, the IPO crashed, and boom... bankruptcy in 2023.
The lesson? Just because someone’s throwing money at you doesn’t mean it’s the right move. If your financial backers don’t share your vision or have their own agenda, that "support" can turn into the biggest mistake. Choose partners wisely.
Culture is Your Competitive Advantage – A company’s values and culture cannot be bought or sold. They are the foundation of a business’s identity and long-term success.
As my old mentor would tell me, "culture eats strategy for breakfast". Making sure you have the right people on the bus, including financial partners, is imperative to success.
Resilience is Key – Facing setbacks is inevitable. What defines an entrepreneur is their ability to adapt, learn, and rebuild stronger.
As former guest Colin Landforce loves to say, "builders build", and I have upmost faith that is exactly what Aaron is going to do.
What’s Next for Aaron?
Despite the challenges, Aaron remains optimistic. His experience with Rokstad Power has provided him with hard-earned wisdom that he’s now using to build something new. His story serves as a reminder that while business failures are painful, they are not the end—only stepping stones to the next opportunity.
As I have said before, "I have never failed a day in my life: I either succeed or I learn"
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