A thread on thoughtful actionable lessons by Suhail (@Suhail) for startup founders:
1/
If startups were plants, instead of water they need traction, customer feedback, and product progress & momentum to grow.
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If startups were plants, instead of water they need traction, customer feedback, and product progress & momentum to grow.
2/
Rarely do great products need more features. They need fewer. Often, products need to do 1 simple thing really well.
If nobody cares, find the hook that matters most that you can hone to perfection.
Rarely do great products need more features. They need fewer. Often, products need to do 1 simple thing really well.
If nobody cares, find the hook that matters most that you can hone to perfection.
3/
Startup vanity:
Valuation, Press, Funding, # of Employees, Offices, Meetings w/ famous people, Meeting to give lots of advice.
Success:
Revenue, Users, Word of mouth, Retention, Servers on fire, Emails asking for features, Meetings w/ users.
Startup vanity:
Valuation, Press, Funding, # of Employees, Offices, Meetings w/ famous people, Meeting to give lots of advice.
Success:
Revenue, Users, Word of mouth, Retention, Servers on fire, Emails asking for features, Meetings w/ users.
4/
The road to product market fit can be summarized as: - Ship new code - Have users try the product - Frantically fix bugs - Ask for brutal feedback - Monitor use till they churn - Learn why & write it down - Prioritize what prevents churn - Write code - Find new users - Repeat
The road to product market fit can be summarized as: - Ship new code - Have users try the product - Frantically fix bugs - Ask for brutal feedback - Monitor use till they churn - Learn why & write it down - Prioritize what prevents churn - Write code - Find new users - Repeat
5/
Every time I start to feel a little doubt about the company succeeding, I've always found that having users try the product & getting feedback was more than enough to keep my optimism.
As long as the problems are solvable & sufficiently painful, it's just a matter of time.
Every time I start to feel a little doubt about the company succeeding, I've always found that having users try the product & getting feedback was more than enough to keep my optimism.
As long as the problems are solvable & sufficiently painful, it's just a matter of time.
6/
Two important vectors to build momentum in a startup are listening to users & shipping speed. To listen well, you'll need to constantly talk to users & be picky about who to serve. To ship quickly, you have to scope just enough & have good instincts about how to solve it.
Two important vectors to build momentum in a startup are listening to users & shipping speed. To listen well, you'll need to constantly talk to users & be picky about who to serve. To ship quickly, you have to scope just enough & have good instincts about how to solve it.
7/
Working with great designers has always been one of those things that gives me so much energy when building a company.
It lifts the aspirations & ambitions for everyone involved.
Working with great designers has always been one of those things that gives me so much energy when building a company.
It lifts the aspirations & ambitions for everyone involved.
8/
Success or failure, at least have fun creating your startup:
Learn something deeply technical, push your boundaries personally, remove comfort & see what taking risk is like, get feedback from a team, learn a new skill like legal/design/sales, and meet interesting people.
Success or failure, at least have fun creating your startup:
Learn something deeply technical, push your boundaries personally, remove comfort & see what taking risk is like, get feedback from a team, learn a new skill like legal/design/sales, and meet interesting people.
9/
Some founders fear charging their users for their product early on. I think it happens out of fear that it's premature & worry it might demotivate them.
But I think it's much worse to toil on the wrong thing & waste precious minutes of your life. Use Venmo/PayPal & test!
Some founders fear charging their users for their product early on. I think it happens out of fear that it's premature & worry it might demotivate them.
But I think it's much worse to toil on the wrong thing & waste precious minutes of your life. Use Venmo/PayPal & test!
10/
Providing a free product isn't sufficient to test the value of what you're building.
People will lie to you & it is hard to estimate the importance of a problem even when you talk to users. So, let money talk. This doesn’t mean don’t do freemium.
Providing a free product isn't sufficient to test the value of what you're building.
People will lie to you & it is hard to estimate the importance of a problem even when you talk to users. So, let money talk. This doesn’t mean don’t do freemium.
11/
Don't overthink the price. Start small, then keep increasing it until it's pissing customers off.
Don't overthink the price. Start small, then keep increasing it until it's pissing customers off.
12/
If your market is big & is greater than 500 customers, don't sweat a company getting a great low-priced deal early on. You can always optimize later.
I assure you, 6000+ paying customers later, I never looked back & regretted giving someone the product for $25/mo at first.
If your market is big & is greater than 500 customers, don't sweat a company getting a great low-priced deal early on. You can always optimize later.
I assure you, 6000+ paying customers later, I never looked back & regretted giving someone the product for $25/mo at first.
13/
Embrace the possibility people don't value your product enough to pay. Don't be scared, be curious.
Better to find out now than in 6 mo. An open mind may lead you to a quarter pivot to a higher growth rate with an even better/more valuable product.
Embrace the possibility people don't value your product enough to pay. Don't be scared, be curious.
Better to find out now than in 6 mo. An open mind may lead you to a quarter pivot to a higher growth rate with an even better/more valuable product.
14/
My algo to pick investors:
1. Do they listen?
2. Have they gone to great lengths w/ other founders?
3. Are they an expert at something you suck at?
4. Did they make you think differently?
5. Did they respect your time?
6. Do they make you dream bigger?
7. Are they kind?
My algo to pick investors:
1. Do they listen?
2. Have they gone to great lengths w/ other founders?
3. Are they an expert at something you suck at?
4. Did they make you think differently?
5. Did they respect your time?
6. Do they make you dream bigger?
7. Are they kind?
15/
My algo for deciding how much to raise was simple:
- $225000 fully loaded cost per hire (SF)
- times 6 people (max # I'll need for now)
- times 2 years of runway (time I need to succeed)
- times 1.3x for a buffer (because I'll get something wrong)
Raise just what you need.
My algo for deciding how much to raise was simple:
- $225000 fully loaded cost per hire (SF)
- times 6 people (max # I'll need for now)
- times 2 years of runway (time I need to succeed)
- times 1.3x for a buffer (because I'll get something wrong)
Raise just what you need.
16/
Keep the team small until you absolutely need to add someone. Then, you'll have a lot more runway. Exceptions apply.
Keep the team small until you absolutely need to add someone. Then, you'll have a lot more runway. Exceptions apply.
17/
The first 12 mo of a startup can be compressed to:
1. Is there demand & does anyone want this?
2. Is it useful & will they keep using it?
3. How do I get more people to keep using it?
Interspersed w/ periods of irrational conviction & temp sadness.
The first 12 mo of a startup can be compressed to:
1. Is there demand & does anyone want this?
2. Is it useful & will they keep using it?
3. How do I get more people to keep using it?
Interspersed w/ periods of irrational conviction & temp sadness.
18/
Write down the direction & problem you want to solve. Get everyone on the same page. Make a list. Re-rank the list every week.
Build & ship frequently. Keep the team small until you reach product-market-fit.
Write down the direction & problem you want to solve. Get everyone on the same page. Make a list. Re-rank the list every week.
Build & ship frequently. Keep the team small until you reach product-market-fit.
19/
All startups constantly go through waves of uncertainty ranging from does anyone want this to how will we make money from all these users?
What I’ve found helpful is focusing on 1 problem at a time & commensurately doubling my focus on each sub problem as I go.
All startups constantly go through waves of uncertainty ranging from does anyone want this to how will we make money from all these users?
What I’ve found helpful is focusing on 1 problem at a time & commensurately doubling my focus on each sub problem as I go.
20/
The single best productivity hack I am aware of is just writing a list of things to do tomorrow the night before, not checking your email first thing when you wake up, and doing the list. Repeat.
The single best productivity hack I am aware of is just writing a list of things to do tomorrow the night before, not checking your email first thing when you wake up, and doing the list. Repeat.
21/
Startups have these sweet moments where you step into a challenge, you have no idea how you're going to solve it, & you spend days/weeks trying everything you can.
Then, a few clues & insights from helpful people create a solution.
Startups have these sweet moments where you step into a challenge, you have no idea how you're going to solve it, & you spend days/weeks trying everything you can.
Then, a few clues & insights from helpful people create a solution.
22/
I don't know when it will happen but I really do believe the world will get sick of software centralization the same way it's gotten tired of privacy violations.
When it does, that will really set crypto on a pace that's beyond anything we've ever seen with the web.
I don't know when it will happen but I really do believe the world will get sick of software centralization the same way it's gotten tired of privacy violations.
When it does, that will really set crypto on a pace that's beyond anything we've ever seen with the web.
23/
One of the best parts I've had starting a company is in the first 12 months:
you go from a casual observer of an industry or technology to understanding just how far boundaries have been pushed to date. Then, you graduate into being forced to find a new way to bend things.
One of the best parts I've had starting a company is in the first 12 months:
you go from a casual observer of an industry or technology to understanding just how far boundaries have been pushed to date. Then, you graduate into being forced to find a new way to bend things.
24/
The most helpful conversations I've had when building a startup are the ones with smart people that *don't* like my idea.
Having the curiosity to learn about future they perceive has always led me to learn something I didn't previously understand well enough but needed to.
The most helpful conversations I've had when building a startup are the ones with smart people that *don't* like my idea.
Having the curiosity to learn about future they perceive has always led me to learn something I didn't previously understand well enough but needed to.
25/
Post product-market fit product strategy:
- Double down on what works
- Deprecate non-core features to reduce surface area
- If it’s valuable, measure & optimize it
- Remove your ego & copy great ideas if they help your users
- Don’t get distracted by building new products
Post product-market fit product strategy:
- Double down on what works
- Deprecate non-core features to reduce surface area
- If it’s valuable, measure & optimize it
- Remove your ego & copy great ideas if they help your users
- Don’t get distracted by building new products
26/
I’ve learned to never underestimate the power of 100 little improvements that could be potentially boring to build & unsexy compared to one, large net-new risky feature. Over a long run, those 100 little things make companies appear far more innovative & make a huge impact.
I’ve learned to never underestimate the power of 100 little improvements that could be potentially boring to build & unsexy compared to one, large net-new risky feature. Over a long run, those 100 little things make companies appear far more innovative & make a huge impact.
27/
If I've learned anything about analytics after 10+ years, I largely plan to track only one simple thing to see progress while paying the most attention to what users are experiencing & feeling.
It is so easy to let numbers lie to you, over-analyze, and lose focus.
If I've learned anything about analytics after 10+ years, I largely plan to track only one simple thing to see progress while paying the most attention to what users are experiencing & feeling.
It is so easy to let numbers lie to you, over-analyze, and lose focus.
28/
My personal litmus test for founder market fit is if I stay up late (2 AM) to hack on the idea 6 months later.
Not because you must, though often raw hours matter early on, but because you’re having so much fun building & obsessing over the product.
My personal litmus test for founder market fit is if I stay up late (2 AM) to hack on the idea 6 months later.
Not because you must, though often raw hours matter early on, but because you’re having so much fun building & obsessing over the product.
29/
The biggest difference in how I interview folks now vs in the past:
I try enjoy the interview with candidate & create calmness. Even if a person isn’t the right fit, you lose little by giving them best chance at turning it around even if you provide more than normal help.
The biggest difference in how I interview folks now vs in the past:
I try enjoy the interview with candidate & create calmness. Even if a person isn’t the right fit, you lose little by giving them best chance at turning it around even if you provide more than normal help.
30/
If you’re an investor & want to make a mark on founders that will make them remember you (positively) forever:
help them manage their psychology. Bring them up when they’re down, bring them back to the ground when they’re too high. That’s what I remember mine for the most.
If you’re an investor & want to make a mark on founders that will make them remember you (positively) forever:
help them manage their psychology. Bring them up when they’re down, bring them back to the ground when they’re too high. That’s what I remember mine for the most.
31/
Doing another startup has retaught me the lesson that once you know precisely what users care about (answering more complex questions, better battery life, etc.), that relentless focus on attacking the problem can get you further than you or others initially imagined.
Doing another startup has retaught me the lesson that once you know precisely what users care about (answering more complex questions, better battery life, etc.), that relentless focus on attacking the problem can get you further than you or others initially imagined.
32/
One of the earliest signs your product is getting better for users is that your job steadily shifts from building all day to doing customer support all day.
One of the earliest signs your product is getting better for users is that your job steadily shifts from building all day to doing customer support all day.
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