On Lifecycle, People, Processes & Dashboards — 4 Rules About Startup Growth
To write my master thesis, I had to read a tremendous amount of content on startup growth.
As fascinating as it is, you probably cannot dedicate several hours of your day to read startup theory and entrepreneur stories. So here it is for you: 50 pages of notes summed up in 4 basic rules for growth! Of course, this is at a very superficial level, so feel free to follow the recommended links at the end of the article to dive deeper into the serious stuff.
Here are the 4 rules:
1) Startups go through a typical lifecycle as they grow ;
2) People is the hardest thing to scale up ;
3) Growth is made of processes, not hacks ;
4) The way you show your growth matters
1) Startups go through a typical lifecycle as they grow
A successful startup goes through different phases as it grows. Different authors suggest different models, but a recurring lifecycle can be defined around 3 stages : the garage, the growth machine, and the unicorn. I have actually dedicated a specific article to this framework (here in French, here in English). Understanding the needs and specificities of the organization at each stage is critical for success.
2) People is the hardest thing to scale up
As the company grows, managing people becomes the most critical task. Hiring right and firing fast is true, not only in the operational teams, but also at the board. The CEO himself should be the best person for the position, or let someone take over while he gains maturity. Reinforcing the right corporate culture within a fast-growing group of people is extremely tricky. That’s why the pace of hires and the size of teams should be thought through.
3) Growth is made of processes, not hacks
Hacking growth has become something of a buzzword. However, growth hacking is just a little cog in a much bigger machine, made of processes, geared towards a key metric AKA your North Star. A huge THANK YOU to Brian Balfour for putting so many great contents out there. A must-read for all founders and marketers.
4) The way you show your growth matters
When talking about growth, showing a MRR curve doesn’t tell the whole story. Learn how to show your growth right, to better analyze your own metrics, make the right decisions, and also be more credible when you communicate with your investors.
Recommended readings
About Growth and Startup Lifecycle
- What Do I Do Now? The startup lifecycle
- 5 phases of the startup lifecycle
- Traction VS Growth
- The Never-Ending Road To Product-Market Fit
About Growth and People
- The Dos and Donts of Rapid Scaling for Startups
- What Do I Do Now? The Startup Lifecycle (yes, again!)
- Unlocking the Power Of Stable Teams
About Growth and Processes
About Growth and Dashboards
If you like this article, share the love and click the❤. You can also take a look at this article, which introduces a Venture Capital Map For Startups.
