Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

How to Think About Early Stage Company Growth

334 views

Published on

Bernard's 500 Startup's Hell Week kick-off presentation covers the how to think about the growth process. I'll introduce the framework known as the "Growth Machine" and talk about what to expect during 500 Startups.

Published in: Marketing
  • Be the first to comment

  • Be the first to like this

How to Think About Early Stage Company Growth

  1. 1. Growth & 500 Hell Week Bernard Huang Distribution Advisor-in-Residence Co-founder Mushi Labs & Clearscope @bernardjhuang
  2. 2. Follow along+ resources bit.ly/b22-hw
  3. 3. 1. Welcome to 500 Startups 2. Hell Week schedule 3. The growth process 4. Product-market-fit? 5. Distribution point of contacts (DPOCs) Agenda
  4. 4. Welcome to 500!
  5. 5. 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
  6. 6. Focus on what’s workin’
  7. 7. Hell Week schedule http://bit.ly/hw-b22
  8. 8. The growth process
  9. 9. 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
  10. 10. The growth process Pre P/M Fit Post P/M Fit GOAL Get to P/M fit Scalable & predictable growth @ammineni
  11. 11. Product-market-fit?
  12. 12. 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?
  13. 13. Product-market-fit? iterate until PMF $$ or users
  14. 14. The growth process Pre P/M Fit Post P/M Fit METRIC Engagement & retention Growth rate @ammineni
  15. 15. Engagement & retention Engagement ● actions within web app / mobile ● avg. time on site / app Retention ● how many folks are still performing key actions after a period of time?
  16. 16. Engagement & retention ● Understand your key actions. Engagement and retention metrics are different for everyone.
  17. 17. Growth rate (OMTM) What is your One Metric That Matters (OMTM)?
  18. 18. Your OMTM changes depending on which company stage: ● # of pageviews ● # of users ● # of leads ● $ revenue ● @ referrals ● % retention Growth rate (OMTM)
  19. 19. Growth rate (OMTM) @ammineni ● Ecommerce example
  20. 20. The growth process @ammineni Pre P/M Fit Post P/M Fit EXPERIMENTS Pivots (product, messaging, target customer) Optimization & expansion METHOD Hustling / Non-scalable work Scalable channels & processes
  21. 21. Target audience ● are you talking to the right customers? Value proposition ● are you saying the right things? Product features ● does your product feel right? Pivots (pre-PMF)
  22. 22. Hustling (pre-PMF) Get outta the office and talk to your potential customers!
  23. 23. Hustling (pre-PMF)
  24. 24. ● Leverage your network. ● Can’t sell your friends or your friend’s friends? Good luck! ● Following up is the name of the game. ● Always, always, always ask for $$$. Hustling (pre-PMF)
  25. 25. 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
  26. 26. Optimization (PMF) Double down on what’s already working!
  27. 27. http://www.bakecalc.com/
  28. 28. Optimization (PMF) Fix leaks in your funnel.
  29. 29. Optimization (PMF) @ammineni ● Revenue = visitors * activation rate * retention rate * $$$
  30. 30. Optimization (PMF) @ammineni ● The further down the funnel, the higher the impact.
  31. 31. Example tweaks: ● Paid ad copy ● Landing page ● Offer / lead magnet ● Value proposition ● Onboarding and training ● Product flow and user experience Optimization (pre-PMF)
  32. 32. Expansion (PMF) Wisely experiment with new channels 20% of the time.*
  33. 33. Expansion (PMF)
  34. 34. 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)
  35. 35. Expansion (PMF) Go find more customers!
  36. 36. The growth process @ammineni Pre P/M Fit Post P/M Fit DATA Qualitative + quantitative Quantitative + qualitative
  37. 37. Qualitative (pre-PMF) Validate your assumptions as soon as possible.
  38. 38. Qualitative (pre-PMF)
  39. 39. Qualitative (pre-PMF) ● Can be pretty grueling to brute force your way.
  40. 40. ● 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)
  41. 41. Quantitative (PMF) ● Measure all the way ‘till close if you can.
  42. 42. The growth process @ammineni Pre P/M Fit Post P/M Fit FOCUS Learning What’s working PROCESS Scientific method “Growth machine”
  43. 43. Growth Comes from a series of experiments.
  44. 44. Scientific method 1. Objective 2. Hypothesis 3. Experiment 4. Conclusion
  45. 45. Define your objective More ___________________
  46. 46. Have a hypothesis If we ___________________ then we’ll get more _______________.
  47. 47. Run the experiment ● assume nothing ● set up `analytics` ● get `statistical significance`
  48. 48. What’s the conclusion? Did the experiment work as planned?
  49. 49. If it did... Scale the experiment!
  50. 50. If it didn’t... What did you learn? What assumptions are invalidated?
  51. 51. Experiment relentlessly ● experiment ● experiment ● experiment ● experiment ● experiment ● the faster you learn what doesn’t work… the faster you learn what does work
  52. 52. “Growth machine” @bbalfour
  53. 53. 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
  54. 54. 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.
  55. 55. Your DPOC “We’ll teach you how to fish, but won’t fish for you.”
  56. 56. 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
  57. 57. Resources File > Make a copy... ● KPI spreadsheet ● Experiment brainstorming sheet ● B22 Hell Week schedule Looking for tactics? ● Guerrilla marketing tactics
  58. 58. #500DISTRO @bernardjhuang

×