Startup Systems
systems that power startups
Startup Systems
There isn’t nearly enough emphasis on repeatability . As you move your way up through the different levels of product-market fit, what you’re really unlocking is repeatability — across demand generation, product development, customer satisfaction and unit economics. A startup hasn’t reached the upper levels of product-market fit until it has... See more
The 4 Levels of PMF
"I've noticed three main things holding people back from being more productive and achieving their goals.
They resist creating processes for themselves: This might be baggage from the past where processes were used to control and subjugate them. But processes chosen and designed by YOU can become liberating.
They resist making decisions: Most
The Jenga situation
seths.blog
The early days are exciting. Customers are seen and heard and served. Variations are created and value is produced as problems are solved.
In the early days, the most celebrated employees are the ones who figure out what someone needs and then determines a way to fill that need.
Once the organization gains traction, it’s possible that a short-term profit maximizer will join the team. They push to treat the customers as replaceable flanges, almost identical, income opportunities to be processed. And the employees? They are expenses, not part of a team.
It can seem like the fastest way for a stable business to increase profits is simply to remove some sticks. Process more flanges with fewer expenses. Lower overhead, measure the easy stuff, do it faster.
We spend too much time dealing with shaky towers. The resilience of people connecting, of organizations evolving, of service and clarity and generative work is far too important to be threatened by a few hustlers who insist on measuring the wrong thing.
There is a whole lot of goodness out there when the right systems are in place.
There’s lots of well-intentioned advice out there about the risks if a business takes off and there isn’t a solid foundation to stand on. But at the same time, it's no surprise that startup leaders see words like "optimizing headcount through capacity planning models" and file it away as unnecessary bureaucracy that’s more befitting of the “BigCo”... See more
How Talent Teams Can Better Weather Boom-and-Bust Cycles
The only reason you need venture capital is if (a) the technology is too expensive and you cannot self-fund it or (b) your product is going to catch fire too quickly. If done correctly, crossing the chasm should be inexpensive. Strive for cash-flow-positive and aim to change the value state of your company to attract investors and avoid constant... See more
Lenny Rachitsky • Geoffrey Moore on finding your beachhead, crossing the chasm, and dominating a market
There are a few dimensions of PMF that are in tension with each other, requiring deliberate tradeoffs at each level . There isn’t just one element to emphasize above all else. And importantly, there are different times in a company’s lifespan where founders need to intentionally prioritize one over another.
The 4 Levels of PMF
The median bootstrapped B2B SaaS company currently spends around 90% of its annual recurring revenue on costs—25% on go-to-market strategy and execution, 24% on research and development, 15% on administrative and miscellaneous expenses, 13% on website hosting and implementation, and 10% on customer retention. Each of these categories of cost is now... See more
Will Manidis • Asset-light Software Businesses: The New Paradigm for Startups
On the evolving spend of startups