How to grow your startup - Ex PayPal growth strategist Matt Lerner
Feb 6, 2024
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Ex PayPal growth strategist Matt Lerner shares insights on how to grow your startup, including finding the 10% that generates 90% of results, prioritizing growth experiments, and hiring the right people. The podcast also covers the importance of a North Star metric, improving internet connection, building the right team, achieving security frameworks, and the role of AI in startups.
Successful startups prioritize rapid experimentation, understanding their growth models, and listening to customers to effectively drive growth.
To achieve growth, it is necessary to map the growth model and identify points of leverage in the business.
Identifying growth levers is crucial in driving exponential growth for a startup.
Deep dives
Identifying the Right Growth People
To successfully grow a new company, it is crucial to hire the best growth people. Most companies get it wrong and end up having to fire them. It is important to be confident in finding individuals who can figure out how to grow the business and prioritize learning over being right.
Mapping the Growth Model
To achieve growth, it is necessary to map the growth model and identify points of leverage in the business. By understanding the drivers that move the North Star metric, one can focus on the rate limiting step that will have the most impact on growth. This process helps in efficiently allocating resources and prioritizing the areas that will result in maximum growth.
Finding Growth Levers
Identifying growth levers is crucial in driving exponential growth for a startup. A growth lever refers to the 10% of actions that bring about 90% of the results. The key is to quickly find these levers through experimentation and testing. This involves studying customer behavior, conducting relevant tests, and iterating based on the results. By focusing on the right experiments, startups can find the fastest path to growth.
Identifying Patterns of Failure in Startups
In the podcast, the host discusses three patterns of failure in startups that ultimately stem from the founders' personalities. The first pattern is overthinking, where founders spend too much time debating and discussing at the expense of taking action. The second pattern is underthinking, characterized by a bias for action without a clear strategy, resulting in a complicated product with few customers. The third pattern is hiring and delegating excessively, which hinders rapid learning and experimentation. The key takeaway is that successful startups prioritize rapid experimentation, understanding their growth models, and listening to customers to effectively drive growth.
The Importance of Growth in Startups
The podcast emphasizes that growth is essential for startup success, highlighting that most failed startups have a product and a good team but lack substantial growth. Growth is identified as the core element in unlocking startup success. The guest suggests that viewing growth as an infinite game, where continuous effort and learning are essential, leads to exponential growth. The podcast also discusses the concept of a North Star metric, a measurement that increments when delivering value to customers. Choosing a meaningful and impactful North Star metric is crucial, as it guides the entire company's strategy, aligns the team's efforts, and ensures continuous progress towards growth.
Is there anything harder in business than growing your company? Probably not and that's why we're speaking to one of the best in the growth game - Matt Lerner. He explains how to find the 10% of things that will actually grow your startup, how to hire growth people, how to prioritise growth experiments (it's not the usual way) and lots of other things that can change your company's future.