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Growth & 500 Hell Week
Bernard Huang
Distribution Advisor-in-Residence
Co-founder Mushi Labs & Clearscope
@bernardjhuang
Follow along+ resources
bit.ly/b22-hw
1. Welcome to 500 Startups
2. Hell Week schedule
3. The growth process
4. Product-market-fit?
5. Distribution point of contacts (DPOCs)
Agenda
Welcome to 500!
Welcome to 500!
1. Meet the mentors
2. Meet the investors
3. Receive conflicting advice on what to do
4. Get shredded in pitch practice
5. Have fun
...
6. And don’t forget to continue running your company
Focus on what’s workin’
Hell Week schedule
http://bit.ly/hw-b22
The growth process
Pre P/M Fit Post P/M Fit
GOAL Get to P/M fit Scalable & predictable growth
METRIC Engagement & retention Growth rate
EXPERIMENTS Pivots (product, positioning,
target customers)
Optimization & expansion
METHOD Hustling Scalable channels & processes
DATA Qualitative Quantitative
FOCUS Learning What’s working
PROCESS Lean methodology “Growth machine”
The growth process
@ammineni
The growth process
Pre P/M Fit Post P/M Fit
GOAL Get to P/M fit Scalable & predictable
growth
@ammineni
Product-market-fit?
Product-market-fit?
Market size
● do “enough” people want what you’re selling?
Business model
● are they paying you “enough” money for your solution?
Customer acquisition
● can you consistently reach your potential customers?
Product-market-fit?
iterate until PMF
$$ or
users
The growth process
Pre P/M Fit Post P/M Fit
METRIC Engagement &
retention
Growth rate
@ammineni
Engagement & retention
Engagement
● actions within web app / mobile
● avg. time on site / app
Retention
● how many folks are still performing key actions after a
period of time?
Engagement & retention
● Understand your key actions. Engagement and retention
metrics are different for everyone.
Growth rate (OMTM)
What is your One Metric That
Matters (OMTM)?
Your OMTM changes depending on which company stage:
● # of pageviews
● # of users
● # of leads
● $ revenue
● @ referrals
● % retention
Growth rate (OMTM)
Growth rate (OMTM)
@ammineni
● Ecommerce example
The growth process
@ammineni
Pre P/M Fit Post P/M Fit
EXPERIMENTS Pivots (product,
messaging, target
customer)
Optimization & expansion
METHOD Hustling /
Non-scalable work
Scalable channels &
processes
Target audience
● are you talking to the right customers?
Value proposition
● are you saying the right things?
Product features
● does your product feel right?
Pivots (pre-PMF)
Hustling (pre-PMF)
Get outta the office and talk to
your potential customers!
Hustling (pre-PMF)
● Leverage your network.
● Can’t sell your friends or your friend’s friends? Good luck!
● Following up is the name of the game.
● Always, always, always ask for $$$.
Hustling (pre-PMF)
The growth process
@ammineni
Pre P/M Fit Post P/M Fit
EXPERIMENTS Pivots (product,
messaging, target
customer)
Optimization & expansion
METHOD Hustling /
Non-scalable work
Scalable channels &
processes
Optimization (PMF)
Double down on what’s already
working!
http://www.bakecalc.com/
Optimization (PMF)
Fix leaks in your funnel.
Optimization (PMF)
@ammineni
● Revenue = visitors * activation rate * retention rate * $$$
Optimization (PMF)
@ammineni
● The further down the funnel, the higher the impact.
Example tweaks:
● Paid ad copy
● Landing page
● Offer / lead magnet
● Value proposition
● Onboarding and training
● Product flow and user experience
Optimization (pre-PMF)
Expansion (PMF)
Wisely experiment with new
channels 20% of the time.*
Expansion (PMF)
If word-of-mouth is happening...
● (uber) incentivize customers with referral codes
If people are sharing it...
● (dropbox) make it super easy to share, maybe incentivize?
If large corps start buying it...
● (optimizely) raise prices and invent an “enterprise plan”?
Expansion (pre-PMF)
Expansion (PMF)
Go find more customers!
The growth process
@ammineni
Pre P/M Fit Post P/M Fit
DATA Qualitative +
quantitative
Quantitative +
qualitative
Qualitative (pre-PMF)
Validate your assumptions as
soon as possible.
Qualitative (pre-PMF)
Qualitative (pre-PMF)
● Can be pretty grueling to brute force your way.
● how are you doing XXXXX today?
● what kinds of tools have you being using to solve YYYYY?
● can you walk me through how your team purchases
software?
○ what if it’s over $#### amount per month?
○ is there a budget?
○ what are the policies on credit card? invoice?
Qualitative (pre-PMF)
Quantitative (PMF)
● Measure all the way ‘till close if you can.
The growth process
@ammineni
Pre P/M Fit Post P/M Fit
FOCUS Learning What’s working
PROCESS Scientific method “Growth machine”
Growth
Comes from a series of
experiments.
Scientific method
1. Objective
2. Hypothesis
3. Experiment
4. Conclusion
Define your objective
More ___________________
Have a hypothesis
If we ___________________ then
we’ll get more _______________.
Run the experiment
● assume nothing
● set up `analytics`
● get `statistical significance`
What’s the conclusion?
Did the experiment work as
planned?
If it did...
Scale the experiment!
If it didn’t...
What did you learn? What
assumptions are invalidated?
Experiment relentlessly
● experiment
● experiment
● experiment
● experiment
● experiment
● the faster you learn what doesn’t work…
the faster you learn what does work
“Growth machine”
@bbalfour
Growth process
● Define goals
● Brainstorm
● Have a hypothesis
● Experiment
● Analyze & systemize
- 5 demos per week
- Adwords, FB, outbound, etc.
- If we send 50 emails using
targeted outbound, we’ll get
5 demos per week.
- Get Stuff Done (GSD)
- Did it work? Turn it into a
repeatable process, or stop
doing it
DPOC process
1. You get matched with someone appropriate.
2. We figure out your OMTM.
3. We brainstorm experiments to drive your OMTM.
4. We work together as your growth coach.
a. iterate on what works / declutter what doesn’t work.
5. You have access to everyone via office hours.
Your DPOC
“We’ll teach you how to fish, but won’t fish for you.”
Work with your DPOC
Pre-PMF? Gov tech? Long sales cycles?
● Customer development
● Help with target audience segmentation
● Tactics to get your first customers
PMF?
● Strategies to scale and iterate on what’s working
● Keep you focused on growth
Resources
File > Make a copy...
● KPI spreadsheet
● Experiment brainstorming sheet
● B22 Hell Week schedule
Looking for tactics?
● Guerrilla marketing tactics
#500DISTRO
@bernardjhuang

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How to Think About Early Stage Company Growth