Key Success Factors To Reach Product/Market Fit And Scale, Supported By Findings Of Startup Genome Project On Premature Scaling

1,621 views

Published on

Key success factors for early stage startups to reach product/market fit and scale, supported by findings of the Startup Genome Project regarding premature scaling.

Update Jan 28 2016 incl. additional perks: Startup Playbook by Sam Altman with learnings from Y Combinator and growth hacking advice by Chamath Palihapitiya of Social Capital https://paulamarttila.wordpress.com/2016/01/29/key-success-factors-to-reach-productmarket-fit-and-scale/

Published in: Technology

Key Success Factors To Reach Product/Market Fit And Scale, Supported By Findings Of Startup Genome Project On Premature Scaling

  1. 1. @paulamarttila K E Y S U C C E S S FA C T O R S T O R E A C H P R O D U C T / M A R K E T F I T A N D S C A L E Supported by findings of Startup Compass THE STARTUP GENOME PROJECT (SGP)
  2. 2. 1 . “ D O N ’ T G E T H I G H O N Y O U R O W N S U P P LY ” @paulamarttila Elvira Hancock, Scarface
  3. 3. “ 7 0 % O F S TA R T U P S FA I L D U E P R E M AT U R E S C A L I N G ” @paulamarttila • N E V E R PA S S E D 1 0 0 K U S E R M A R K • 2 0 X S L O W E R G R O W T H R AT E • 9 3 % N E V E R B R E A K $ 1 0 0 K R E V E N U E P E R M O N T H SGP:
  4. 4. 2 . L O N G T E R M V I S I O N S G P : S U C C E S S F U L S TA R T U P S S U C C E E D B E C A U S E T H E Y A R E G O O D S E A R C H E R S , A N D FA I L E D S TA R T U P S A C H I E V E FA I L U R E B Y E F F I C I E N T LY E X E C U T I N G T H E I R R E L E VA N T. i.e. Finding your product/market fit. @paulamarttila Jeff Bezos: “Pay attention to competition, but obsess over customers.”
  5. 5. 3 . C O M M I T M E N T S G P : F O U N D E R S T H AT D O N ’ T W O R K F U L L - T I M E : • 4 X L E S S U S E R G R O W T H • R A I S E 2 4 X L E S S M O N E Y F R O M I N V E S T O R S @paulamarttila
  6. 6. 4 . T E A M I S E V E RY T H I N G “Hire slowly. It’s the only way to avoid winding up at a cocktail party of strangers.”- @Mattlinderman, 37 Signals @paulamarttilaPsst. You’re always hiring!
  7. 7. S G P : B A L A N C E D T E A M S W I T H O N E T E C H N I C A L C O - F O U N D E R & O N E B U S I N E S S C O - F O U N D E R : • R A I S E 3 0 % M O R E M O N E Y • H AV E 2 , 9 X M O R E U S E R G R O W T H • 1 9 % L E S S L I K E LY T O S C A L E P R E M AT U R E LY @paulamarttila 4 . T E A M I S E V E RY T H I N G
  8. 8. 5 . R E S P E C T & D I V E R S I T Y @paulamarttila I . E . H I R I N G A N D D E F I N I N G C O M PA N Y C U LT U R E
  9. 9. W H E T H E R Y O U ’ R E A N E A R LY B I R D O R A N I G H T O W L … @paulamarttila
  10. 10. • A G E • G E N D E R • E D U C AT I O N L E V E L S • E N T R E P R E N E U R I A L E X P E R I E N C E • T I M E C O - F O U N D E R S K N E W E A C H O T H E R S G P : F O L L O W I N G AT T R I B U T E S H AV E N O I N F L U E N C E O N W H E T H E R C O M PA N Y I S M O R E L I K E LY T O S C A L E P R E M AT U R E LY: @paulamarttila
  11. 11. 6 . C U S T O M E R C E N T R I C D E V E L O P M E N T & FA N S * * FANS = Your first PR, Marketing, Customer Service & Sales Team @paulamarttila
  12. 12. S G P : B 2 C V S . B 2 B I S N O T A M E A N I N G F U L S E G M E N TAT I O N O F I N T E R N E T S TA R T U P S A N Y M O R E , B E C A U S E T H E I N T E R N E T H A S C H A N G E D T H E D Y N A M I C S O F C U S T O M E R I N T E R A C T I O N . 6 . 1 . C O N S U M E R I Z AT I O N @paulamarttila
  13. 13. 7 . E X E C U T I O N S G P : I N C O N S I S T E N T S TA R T U P S O U T S O U R C E 4 - 5 X A S M U C H O F T H E I R P R O D U C T D E V E L O P M E N T T H A N C O N S I S T E N T S TA R T U P S . #FAIL @paulamarttila
  14. 14. S G P : G R E AT L I T T L E T E A M W I T H FA S T P R O D U C T T U R N A R O U N D A N D N I M B L E D E V E L O P M E N T, T H AT L I S T E N S T O C U S T O M E R D ATA . #WIN @paulamarttila 7 . E X E C U T I O N
  15. 15. 8 . F O C U S W H E N “ E V E RY T H I N G I S P R I O R I T Y ” S G P : F O C U S B E F O R E R E A C H I N G P R O D U C T / M A R K E T F I T: • I N C O N S I S T E N T S TA R T U P S : 8 0 % O N P R O D U C T • C O N S I S T E N T S TA R T U P S : 4 5 % O N C U S T O M E R D E V E L O P M E N T @paulamarttila Psst. Don’’t engage in feature wars!
  16. 16. VA L U E O F H I R I N G A N D F O C U S T O A C H I E V E G R O W T H B Y @ C H A M AT H “ E L I M I N AT E E G O C U LT U R E . H I R E A - P E O P L E . ” “If you constrain the problem to say there’s one thing, it forces everyone to be an expert, or to know that one thing, and then to speak intelligently and, most importantly, factually about that one thing, and so you can’t bullshit, and you can’t grind f**k people, and when you can’t do that, you actually have good decisions and you force clarity of thought. That’s hard.” - “ F O C U S C O N S T R A I N S O P T I O N A L I T Y A N D F O R C E S C L A R I T Y O F T H I N K I N G ” H O W W E P U T FA C E B O O K O N PAT H T O 1 B U S E R S : @paulamarttilaChamath Palihapitiya, Social Capital
  17. 17. 9 . L E A R N FA S T @paulamarttila S G P : S TA R T U P S R A I S E 7 X M O R E & H AV E 3 , 5 X B E T T E R U S E R G R O W T H W H E N T H E Y: • H AV E H E L P F U L M E N T O R S • T R A C K P E R F O R M A N C E M E T R I C S • L E A R N F R O M S TA R T U P T H O U G H T L E A D E R S S G P : F O U N D E R S T H AT L E A R N A R E M O R E S U C C E S S F U L
  18. 18. 1 0 . B E A P E R S O N @paulamarttila Give before you get. People do business with, and invest in people they trust. Build trust.
  19. 19. R E M E M B E R , S TA RT U P S A R E H A R D
  20. 20. B O N U S T R A C K # 1 # M U S T WAT C H @paulamarttila Startup Lifecycle by Fred Destin
  21. 21. # M U S T R E A D B O N U S T R A C K # 2 Startup Playbook by Sam Altman @paulamarttila
  22. 22. E X C E R P T S 1 / 3 Startup Playbook by Sam Altman “Don’t lose sight of the long-term vision, and trust that the day-to-day challenges will someday be forgotten and replaced by memories of the year-to-year progress. Among your most important jobs are defining the mission and defining the values. “Don’t get caught up in early success—you didn’t get off to a promising start by going to lots of networking events and speaking on lots of panels. Startup founders who start to have initial success have a choice of two paths: either they keep doing what they’re doing, or they start spending a lot of time thinking about their “personal brand” and enjoying the status of being a founder.” “99% of the time, you should ignore competitors. In the words of Henry Ford: "The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time." “They [startups] should be building product and talking to users, and not much else besides eating, sleeping, exercising, and spending time with their loved ones.” “A successful startup takes a very long time—certainly much longer than most founders think at the outset. You cannot treat it as an all-nighter.” @paulamarttila
  23. 23. E X C E R P T S 2 / 3 Startup Playbook by Sam Altman “Cofounder breakups are one of the leading causes of death for early startups, and we see them happen very, very frequently in cases where the founders met for the express purpose of starting the company.” “Tech startups need at least one founder who can build the company’s product or service, and at least one founder who is (or can become) good at sales and talking to users. This can be the same person.” “Hiring is one of your most important jobs and the key to building a great company (as opposed to a great product.) My first piece of advice about hiring is don’t do it. The most successful companies we’ve worked with at YC have waited a relatively long time to start hiring employees.” “One of the things we look at the most is the strength of the founders. When I used to do later-stage investing, I looked equally hard at the strength of the employees the founders hired.” “Whatever you set at the beginning will usually still be in force years later, and as you grow, each new person needs to first buy in and then sell others on the mission and values of the company. So write your cultural values and mission down early.” @paulamarttila Startup Playbook by Sam Altman
  24. 24. E X C E R P T S 3 / 3 Startup Playbook by Sam Altman “I am skeptical about most excuses for why a company isn’t growing—very often the real reason is that the product just isn’t good enough.” “Remember, if you haven’t made a great product, nothing else will save you. You want to build a “product improvement engine” in your company. You should talk to your users and watch them use your product, figure out what parts are sub-par, and then make your product better. Then do it again. ” “You cannot outsource the work to someone else for a long time." “Remember that at least a thousand people have every great idea. One of them actually becomes successful. The difference comes down to execution.” “Focus and intensity. These words seem to really apply to the best founders I know.” “Don’t be a jerk.” “Charlie Rose once said that things get done in the world through a combination of focus and personal connections.” @paulamarttila “No first-time founder knows what he or she is doing. To the degree you understand that, and ask for help, you’ll be better off. It’s worth the time investment to learn to become a good leader and manager. The best way to do this is to find a mentor - reading books doesn’t seem to work as well.” Startup Playbook by Sam Altman
  25. 25. @paulamarttila http://paulamarttila.com paula.marttila@gmail.com https://twitter.com/paulamarttila http://www.linkedin.com/in/paulamarttila Thank You
  26. 26. I M A G E C R E D I T S & R E F E R E N C E S Scarface: http://www.flickr.com/photos/zpeckler/2500484769/ Highway: http://www.flickr.com/photos/seangloster/847655067/ Clock: http://www.flickr.com/photos/sneeu/202207719/ Bar: http://www.flickr.com/photos/slazebni/2997717108/ Kids at camp: http://www.flickr.com/photos/cuppojoe_trips/594428407/ Respect the cows: http://www.flickr.com/photos/runran/3816557888/ Early bird: http://www.flickr.com/photos/36997872@N00/3952976095/ Night owl: http://www.flickr.com/photos/left-hand/2239790269/ Hamilton fans: https://www.flickr.com/photos/paulamarttila/4383893915 Bored children: http://www.flickr.com/photos/zen/241745451 Lego: http://www.flickr.com/photos/ianus/279779993/ Important: http://www.flickr.com/photos/valeriebb/290711738/S Lean Startup: https://www.flickr.com/photos/paulamarttila/6116853206/ Helping hands: http://www.flickr.com/photos/theloushe/3696494100/ Awesome: http://www.flickr.com/photos/torley/3674050796/ Fred Destin: https://www.flickr.com/photos/paulamarttila/5939919930/ www.compass.co/ startup-ecosystem.compass.co/startupgenomereport2/ http://blog.asmartbear.com/startup-genome-project.html https://signalvnoise.com/posts/1808-strangers-at-a-cocktail-party https://www.youtube.com/watch?v=rdk7xVl7RUc : Chamath Palihapitiya, Launch Festival 2013 Chamath Palihapitiya, How we put Facebook on path to 1B users: http://www.youtube.com/watch?feature=player_embedded&v=raIUQP71SBU#! freddestin.com/2011/08/startup-lifecycle-lean-to-fat-launch-to-scale-video.html http://playbook.samaltman.com/ @paulamarttila

×