A Product Market Fit Show | Startup Podcast for Founders How Gusto’s $10B founder raised $6M, built a team of 5—& hit $5M ARR in just 2 years. | Josh Reeves, Founder of Gusto
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Jan 6, 2025 Josh Reeves, Founder and CEO of Gusto, discusses his impressive journey in creating a payroll software giant now valued at $9.5B. He emphasizes the power of starting small, focusing on tech startups in California, and the value of iterating on product with a lean team. Reeves shares how customer interviews clarified their target market and the significance of addressing real pain points. He also reflects on the role of Y Combinator in accelerating their growth, highlighting the importance of maintaining a strong company mission and fostering customer loyalty.
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Origin Story and Email Signature
- Josh Reeves includes the Alan Kay quote "The best way to predict the future is to invent it" in his email signature.
- This reflects his entrepreneurial mindset, emphasizing challenging the status quo and making things better, similar to his parents' journeys.
Focusing on a Niche
- Gusto started by focusing on a seemingly unexciting problem: payroll for SMBs.
- However, this niche focus allowed them to address a significant pain point affecting many businesses.
Big Problems and Viable Solutions
- Focus on solving big, painful problems that could be improved with technology.
- Validate your solution and ensure a viable business model with good unit economics.