90% of startups fail.
Due to various reasons,
⮕ 10% fail in the 1st year!
⮕ 70% fail between 2nd & 5th year!
SPEED is that ONE thing in your control to help you succeed in spite of these odds.
🧵Here's how:
Due to various reasons,
⮕ 10% fail in the 1st year!
⮕ 70% fail between 2nd & 5th year!
SPEED is that ONE thing in your control to help you succeed in spite of these odds.
🧵Here's how:
The most imp job of a founder is knowing when to accelerate & by how much.
At early stages, while your product is being developed, & the business model is being fine-tuned, go slow & conserve cash.
Don't make unnecessary hires to sell an MVP or an unfinished product at scale.
At early stages, while your product is being developed, & the business model is being fine-tuned, go slow & conserve cash.
Don't make unnecessary hires to sell an MVP or an unfinished product at scale.
Eventually, there will come a time when your business model has been proven.
Meaning, your customer acquisition cost(CAC) can be maintained at scale & you make at least 3xCAC from each customer.
At this point, relevant investors will be keen, raise money & accelerate hard!
Meaning, your customer acquisition cost(CAC) can be maintained at scale & you make at least 3xCAC from each customer.
At this point, relevant investors will be keen, raise money & accelerate hard!
For 1st time entrepreneurs, it's tough to figure out when to accelerate. You've been frugal until your biz model is proven & now you've to suddenly accelerate.
Be careful with acceleration. Going fast & rushing are 2 diff things.
@JamesClear on rushing:
Be careful with acceleration. Going fast & rushing are 2 diff things.
@JamesClear on rushing:
https://twitter.com/JamesClear/status/1423757701486678018?s=20
⭐ Here are 5 Steps for 1st-time entrepreneurs to build with speed:
1. Gain adequate insight.
Understand that you cannot have all the info.
Info is accessible doesn’t mean you know/understand it.
⮕ Measure in terms of the accuracy of your insight (70-80% accuracy is enough).
1. Gain adequate insight.
Understand that you cannot have all the info.
Info is accessible doesn’t mean you know/understand it.
⮕ Measure in terms of the accuracy of your insight (70-80% accuracy is enough).
2. Decide based on the insight you've gained.
No clarity? You’re deciding too fast.
Overthink it? You’re deciding too slow.
⮕ Evaluate decisions in terms of risk, not on time-spent or perfection.
There’s risk in both, deciding too fast & too slow.
No clarity? You’re deciding too fast.
Overthink it? You’re deciding too slow.
⮕ Evaluate decisions in terms of risk, not on time-spent or perfection.
There’s risk in both, deciding too fast & too slow.
3. Execute/Deliver fast.
We all understand this as it’s the most tangible piece to measure & analyse.
Once you decide on a course of action, take it.
Don’t redo/doubt/waste time.
⮕Just act on your plan the moment you come up with it or reach a consensus in a meeting.
We all understand this as it’s the most tangible piece to measure & analyse.
Once you decide on a course of action, take it.
Don’t redo/doubt/waste time.
⮕Just act on your plan the moment you come up with it or reach a consensus in a meeting.
4. How soon can you deliver results/impact?
It’s risky to start focusing on impact very early on, it’ll harm your ability to make a large sustainable impact.
⮕ Instead, find sustainable revenue streams! Double down later for speed.
Not all revenue streams are sustainable.
It’s risky to start focusing on impact very early on, it’ll harm your ability to make a large sustainable impact.
⮕ Instead, find sustainable revenue streams! Double down later for speed.
Not all revenue streams are sustainable.
5. Pivot fast.
Every startup will have to pivot at some point. Your startup is most vulnerable while pivoting.
You’re adapting to change by reworking your reason for existence.
Take too long & you’re stuck in limbo.
⮕ A startup's speed is about survival.
Don't quit, pivot!
Every startup will have to pivot at some point. Your startup is most vulnerable while pivoting.
You’re adapting to change by reworking your reason for existence.
Take too long & you’re stuck in limbo.
⮕ A startup's speed is about survival.
Don't quit, pivot!
Think through things & execute with speed, don’t rush.
Be fast, not rash.
Get a mentor who’s done something similar.
This person can ask you all the right questions so you figure out your direction & model without wasting resources.
Mentored Startups grow 3-4 times faster.
Be fast, not rash.
Get a mentor who’s done something similar.
This person can ask you all the right questions so you figure out your direction & model without wasting resources.
Mentored Startups grow 3-4 times faster.
Here are some useful threads to help you further:
1. @SahilBloom on decision making & clarity:
1. @SahilBloom on decision making & clarity:
https://twitter.com/SahilBloom/status/1456969261839228936?s=20
2. The Minimum Viable Testing framework by @gaganbiyani:
https://twitter.com/gaganbiyani/status/1438505843444502539?s=20
3. Here's how @Julian decides if he'll invest in your startup:
https://twitter.com/Julian/status/1451992898723987462?s=20
Summary:
Be fast, not rash!
1. Gain adequate insight
2. Decide based on the insight you’ve gained + risk
3. Execute/Deliver fast
4. Find 'sustainable' revenue streams
5. Pivot quickly
🔁 Repeat to find/add revenue streams & refine your business model.
Timing is important!
Be fast, not rash!
1. Gain adequate insight
2. Decide based on the insight you’ve gained + risk
3. Execute/Deliver fast
4. Find 'sustainable' revenue streams
5. Pivot quickly
🔁 Repeat to find/add revenue streams & refine your business model.
Timing is important!
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