The foremost topic on every founder's mind right now: how to weather the ups-and-downs of an unpredictable economy. Gusto, has swerved with every economic curve since its founding 10 years ago. But throughout it all, Gusto has defined valuation differently—in terms of the value it provides to customers vs the value it extracts. In this talk, Gusto CEO and founder Josh Reeves can speak to how Gusto has weathered the ups-and-downs of the economy—and why aligned success models (what's good for the customer = what's good for society = what's good for your business) are so important, especially now. Josh can share the specific business decisions Gusto has had to make with this approach, particularly over the past few years and today.

1. How to Create Value?
Lessons from Scaling Gusto
Josh Reeves
CEO & Co-Founder
Gusto
@gustoHQ
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2. Confidential - Do not distribute
How to create value? Lessons from Scaling Gusto.
Josh Reeves
CEO & Co-Founder

3. Starting something new? Focus on pain/problems.
Advice: Imagine it’s the 10,000th time you’re describing
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Why Does a Company Exist?
To Solve a Problem. A Customer Problem.

4. Products must work. Solve the pain.
But also create a “wow” moment of making things better.
Takes time/effort to build trust, and it can be lost easily.
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Minimum Loveable Product (MLP)
Not Minimum Viable Product (MVP)

5. The motivation to grow comes from a desire to solve (more) pain for (more) people. That’s good!
But, there must be checks/balances on growth (if you’re optimizing for the long term):
● Customer experience / product quality
● Business model → unit economics, CAC, GM, etc.
● Employee experience
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Checks & Balances on Growth
It’s never growth at all costs

6. This is at the heart of every subscription based business model
1. Identify Pain
2. Solve the Pain (i.e. create value for the customer)
3. Get paid (recurring) for that (ongoing) value creation
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Aligned Business Model
Create value for the customer, and that creates value for your company

7. Your Vision & Mission are the Due North
● What you do now vs. next is a strategic choice
● Debate this during planning, then put stakes in the ground, build, iterate, and learn
Horizons
● Manage as a portfolio (%)
● Core, adjacent, orthogonal
● Choose what % is right for you
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Intentional Phasing & Leverage Horizons
Sequencing matters

8. The HOW
● Values
● Traditions
● What you reward
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The WHAT and the HOW
Both Matter

9. 13 | Confidential – Do Not Distribute
Embody a
service mindset.
Never stop advocating
for the needs of others.
Dream big,
then make it real.
Be ambitious.
Show & do > tell & talk.
Be proud
of the how.
Ensure deep integrity
in everything you do.
Embrace an
ownership mentality.
Take initiative to leave things better
than you found them.
Debate
then commit.
Share openly, question respectfully, and
once a decision is made, commit fully.
Build
with humility.
Put collective success
before individual achievements.
R e p r e s e n t a t i o n + I n c l u s i o n + S o c i a l I m p a c t + E q u i t y = R I S E
The HOW starts with values ...

10. 1. Values alignment
2. Motivation for your problem/customer/mission
3. Skillset so they can add value
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Hiring = a search for alignment
Three dimensions to that alignment

11. Alignment around (1) Values, (2) Motivation, (3) Skillset
If you can, take the time to get to know investors (when you are not fundraising)
Investors become part of your team (albeit part-time). So choose wisely.
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Fundraising is like Hiring
Same search for alignment matters

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Summary
Focus on the Customer. Solve pain.
Aligned Business Model. You benefit when the customer benefits.
Be Proud of the How. Build through the ups/downs, guided by values.
Long Term Mindset. Intentional phasing. MLP. Horizons.

13. The recipe for long term success is simple:
1. Solve a real pain point
2. Be proud of how you do it
Executing it (and scaling) is what’s hard
● But you’re not alone
● Company building is a team effort
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Congrats on building something!