The Danger of PLG at the Beginning of Starting a Startup

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Launching a startup with product-led growth (PLG) before determining product-market fit can be detrimental. Without knowing how customers perceive the product, it is difficult to identify conversion issues or make necessary pivots. Sales, which involves talking to customers, is crucial in discovering product-market fit. Starting a SaaS business with a focus on PLG can be efficient, but only once the company has achieved a few million in revenue. In the early stages, talking to customers through sales is the best way to determine product-market fit.

David Hsu has one of the most interesting founders journeys in tech today. After growing up in Silicon Valley, he left to study both philosophy and computer science at Oxford in the UK, then returned immediately afterward to found an internal enterprise tools company. Fast forward to today, and Retool is a multi-billion dollar valuation juggernaut that — almost uniquely for this era — operates at roughly cashflow breakeven while still growing rapidly. On this episode David shares his thoughts on finding product-market fit through sales, the dangers of product-led growth, how to get $1-5 million in ARR with just 5-10 people on the team. Tune in!

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