Y Combinator Startup Podcast Customer Obsession Made Gusto A $9.6 Billion Company
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Mar 18, 2025 Josh Reeves, Co-founder and CEO of Gusto, takes us through the journey of building a $9.6 billion payroll and HR company tailored for small businesses. He discusses the challenges entrepreneurs face with outdated payroll systems and the shift from a marketplace model to user-friendly payroll solutions. Josh emphasizes the importance of customer obsession and agility in scaling a startup, while also revealing how Gusto leverages AI to enhance support for small businesses and navigate operational hurdles.
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Gusto's Pivot
- Gusto's co-founders initially applied to Y Combinator with an expert advice platform.
- This idea pivoted to payments, then marketplaces, and finally landed on payroll.
Obsession Over Traction
- Founders should focus on problems they are truly passionate about.
- Obsession with the problem space is more important than initial traction.
Focus on One Product
- Start with one core product and focus on it intensely.
- Gusto prioritized building a functioning payroll system in a single state before expanding.