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@unicornholding

Here's what you need to know (and avoid) when it comes to company growth:

(from a former ycombinator partner who failed a bunch of companies and sold one for $1 billion)

1. Don't over-rely on press as your primary distribution strategy.

There are very rare cases of companies that manage to hack the press by forcing reporters to write about them over and over again.

This is rarely a replicable and more importantly, sustainable, method of effective distribution.

User acquisition strategy needs to go way beyond just having a few great stories lined up on TechCrunch

The way to achieve this is to make your product 'intrinsically viral'

aka: build something so dope that people will be forced to share it with their friends

Tesla's cars are a great example of physical products that have intrinsic virality built into them, without relying on extensive advertising campaigns

They self-drive 🙂 their own marketing

2. If you haven't figured out initial growth for your company, the last thing you should do is hire a marketing specialist

I see this a lot in technical founders who have just raised a huge round and have no idea what to do with it (cont.)

If you don't have PMF, but force-feed marketing anyway you will run into two outcomes.

Your entire business fails; or you succeed in *spite* of your hires. While one is marginally better, both are far from ideal.

3. Growth masks all problems

Whether its a morale, management, or recruiting problem - it boils down to having a 'growth problem.'

(cont.)

During high-growth periods, these problems are masked. This can be helpful because it won't impede your ability to recruit people or be productive.

However,

4. Growth never lasts forever

Low-growth periods are inevitable, and these tend to be the times when those masked problems become very apparent.

Two implications here:

(i). Do whatever you can to keep growing - super important.

If you can just get *some* growth going, you will find that other problems tend to work themselves out (at least temporarily).

This needs to happen as a baseline for your startup to even be functional.

(ii). Do not accumulate too much debt in the areas that are masked by growth - as soon as growth slows down, these problems will become serious.

It is crucial that you are able to handle them without being so overwhelmed that growth completely stalls and you go into free-fall.

Proactively monitor and tackle pressing issues during high-growth periods, instead of scrambling to put out fires while the ship slowly sinks.

https://twitter.com/justinkan/status/1434230120777011202

#growth

@unicornholding

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@unicornholding

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@unicornholding

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