Today I got to catch up with a @HustleFundVC portfolio co that got to $1m+ runrate in less than a year. 🤯
I'm so impressed with this team.
Read on to see how they did this >>
I'm so impressed with this team.
Read on to see how they did this >>
1) Some context - this is a company we incubated at the start of the pandemic. That said, < $500k in total has gone into the company.
So, this co has been incredibly lean and only raised most of that more recently.
So, this co has been incredibly lean and only raised most of that more recently.
2) T = 0. The team identified the problem and just started talking with wouldbe customers.
No product.
They started selling a service and mostly manually fulfilled it in an "agency-like way".
No product.
They started selling a service and mostly manually fulfilled it in an "agency-like way".
3) In fact, they went door to door (with masks!). It was the easiest way to get in front of people.
There's nothing too manual or too janky in the beginning. The biggest risk is building something no one wants.
There's nothing too manual or too janky in the beginning. The biggest risk is building something no one wants.
4) In parallel, incorporated the co.
Initially they accepted lower priced contracts but gradually started raising prices for subsequent customers.
Impt thing was to cover costs and to learn. Were they solving a real problem?
Initially they accepted lower priced contracts but gradually started raising prices for subsequent customers.
Impt thing was to cover costs and to learn. Were they solving a real problem?
5) Then they spun up their website using existing no-code tools. Note: they started selling *before* they created the website.
Shoutout to another @HustleFundVC portfolio co @unstackhq who powered their website.
Don't build tech where it doesn't help derisk the business.
Shoutout to another @HustleFundVC portfolio co @unstackhq who powered their website.
Don't build tech where it doesn't help derisk the business.
6) Month 1 revenue: ~$17k!
Expanded leads to start finding relevant potential customers to talk with via social media groups.
Expanded leads to start finding relevant potential customers to talk with via social media groups.
7) Things started to fall apart because manual operations is chaotic!! This is where tech comes in.
Operations gets more efficient with tech and processes once they have customers.
Operations gets more efficient with tech and processes once they have customers.
8) 3 months later, revenue doubles to $33k!
They are still going door to door and finding leads online. At this pt, it's clear this is a real problem, because the sales cycle is immediate.
Most ppl they cold-email want to talk with them. 1 yr in, they are at $1.2m runrate.
They are still going door to door and finding leads online. At this pt, it's clear this is a real problem, because the sales cycle is immediate.
Most ppl they cold-email want to talk with them. 1 yr in, they are at $1.2m runrate.
9) tl;dr:
1) Sell before you build much
2) If you're hustling & ppl aren't really interested, then maybe
a) it's not a problem ppl will pay for
b) you have the wrong customer persona
If reception is meh, decide whether it's worth it to stick w/ this.
1) Sell before you build much
2) If you're hustling & ppl aren't really interested, then maybe
a) it's not a problem ppl will pay for
b) you have the wrong customer persona
If reception is meh, decide whether it's worth it to stick w/ this.
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