Taxing Times: An Entrepreneur's Journey Lessons learned from building a tech-driven tax solution

The inspiration to start Taxd, a Winchester based digital tax services company, arose from a unmet need in finance: the complexity and confusion surrounding taxes.

"We saw that individuals with intricate international tax issues and small business owners often struggled to find reliable advice," shares Arj Kumar, co-founder and Co-CEO of Taxd. Having worked at PwC, he realised that effective tax planning was often restricted to those who could afford expensive accountants. This gap in access motivated him to democratise tax services, creating a user-friendly platform that leverages automation to make quality tax and accounting services accessible to everyone.

Building a business in an industry traditionally dominated by personal interactions with human accountants presented a significant challenge. "Our biggest challenge was gaining trust," Kumar recalls. "People are accustomed to dealing with human accountants, so we focused on delivering a seamless user experience that emphasises simplicity, security, and accuracy." Through exceptional customer service and product transparency, Taxd successfully built trust with early adopters, proving that automated tax services could rival, if not surpass, traditional methods in reliability and efficiency.

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Securing initial funding for Taxd was no easy feat. "We faced numerous rejections from venture capitalists (VCs) and angel investors early on," Kumar admits. However, his belief in the team's expertise and the substantial market opportunity kept them motivated. "This conviction helped us push forward despite setbacks. Eventually, we secured funding from VCs and angels who shared our vision, validating our belief in the future of Taxd."

Setbacks are an inevitable part of entrepreneurship, but Kumar emphasises the importance of camaraderie in overcoming them. "To handle setbacks, you should work with people you can laugh with. 'We move' is a popular saying within our team whenever something doesn't go our way—which is often!" This light-hearted approach, coupled with a solid support system that includes exercise and hobbies, enables them to devise plans and move forward collectively.

For those looking to start their own business, Kumar offers this crucial piece of advice: "Stay focused on solving a real problem. Get domain expertise first, and then explore how that industry can be improved. This niche knowledge will allow you to advance further." He also stresses the importance of experimenting and testing theories with potential clients to gauge interest in products or services. Building a strong team is equally essential, as sharing the burdens of entrepreneurship can lead to greater success.

Maintaining motivation during challenging periods is vital for any entrepreneur. "I stay motivated by speaking to clients and reading their reviews," Kumar shares. "Remembering the impact we're making is key. Tough times offer opportunities for personal growth, allowing us to evolve into more well-rounded individuals." This perspective transforms challenges into valuable learning experiences.

When it comes to achieving success, Kumar believes in redefining the term itself. "Tip number one: reframe what 'success' means to you," he advises. "Keep delivering value to your clients, even if immediate success isn't apparent. This approach will pay off in the long run." He also stresses the importance of balancing consistency over time with the intensity of effort where it matters, ensuring that the business remains productive and on the path to success.

Arj Kumar's journey with Taxd illustrates the power of determination, adaptability, and a strong commitment to solving real-world problems. By democratising access to quality tax services, he is not only addressing a significant market need but also paving the way for future entrepreneurs to follow suit. As he continues to innovate and inspire, it's clear that the journey of Taxd is just beginning.

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