You have to give it 24 months.
To get to a truly sellable product. Simply to get it off the ground.
Giving it 12 months isn’t enough. 12 month is just enough time to fail.
- 6 months to build & ship 1.0
- 1.0 is wrong, rebuild, re-ship at month 9
- 12 months to get first good customers, maybe, but not enough customers yet. And probably not enough to get funded.
- 18–24 months to get enough customers to pay the rent and your engineers’ salaries
Maybe sometimes it’s faster in B2C. But it’s never faster from Day 0/1 in SaaS and B2B.
And first-time founders and want-to-be-founders don’t budget 24 months to get past beer money.
I know it’s hard. I know you don’t have enough capital, or any capital. I know the team may not commit for 24 months out of the gate.
But the Continue reading "What is the one piece of advice you would give young entrepreneurs with online businesses?"
It does happen with small, solo-style GP funds ($20m or less) and big funds. It’s not that uncommon here as the synergies make sense and the LPs are likely high-net worth individuals, etc.
As the fund gets larger, it’s hard, and the LPAs say investing in your own fund have to be your sole or primary activity. Also, as you even get to be a $50m fund, the conflicts would start, at least in edge cases, with the larger VC firm.
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Either (or both):
1-/ invest in the very, very best entrepreneurs you know that are insanely great … IF you know this people
2-/ AngelList. Angelist
isn’t perfect, nothing is, but with a 46% unrealized IRR, I find it hard to believe it isn’t the #1 place to get started.
Because almost everything else will lead you to 0% IRR.
View original question on quora
Which is the more important priority? Growth or churn? Churn or growth? Early-stage companies have limited resources to focus their efforts. On one hand, growth is important in order to raise a venture capital round. Growth shows demand for a product. On the other hand, churn is a huge source of friction and raises questions of product market fit.
Especially in the early stage, churn is the more important of the two priorities, and when founders ask me which to emphasize that the seed and series A, I’ll always respond churn.
Churn is a limiting factor on the business. Like fiction, at some scale, churn will prevent the business from growing. To maintain the subscription revenue from the existing customer base requires ever greater mountains of cash. A $20 million ARR business losing 50% of its customers every year will have to replace $10 million worth of customers each year Continue reading "Which to Prioritize – Churn or Growth?"
Lexi Reese is the Chief Customer Experience Officer at unicorn startup, Gusto and is one of the top female executives in Silicon Valley. Lexi’s passion for serving customers was sparked by her early career in microfinance as a public policy advocate with ACCION International—giving loans to people living in poverty to start their own ventures. She later worked at Google for eight years, most recently serving as Vice President of Programmatic Sales and Strategy globally. Lexi also started the Cambridge AdWords team for Google’s small business organization. Now at Gusto, Lexi ensures that Gusto is continuously going above and beyond to serve all customers. Huge thanks to Joshua Reeves for the intro today!
In Today’s Episode You Will Learn:
How did Lexi make her way from the world of Google and Facebook to SaaS with Gusto?
What were the biggest takeaways from spending 8 years at Google and seeing the Continue reading "SaaStr Podcast #093: Lexi Reese, Chief Customer Experience Officer @ Gusto Discusses How to Manage NPS Effectively with Scaling"
How does your marketing strategy stack up against your peers?
With an ever-expanding pool of marketing techniques and platforms, it’s become increasingly difficult – and important – to prove marketing effectiveness. To help determine how well you’re implementing marketing best practices, we’ve created this quick SaaS Marketing Scorecard.
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