Startups should focus on….

Group Exercise: What are you focusing on? Why?

It is worthwhile to initially focus on growth.

Gain market share first, rapidly = Grow customer base

Build lasting customer loyalty

Focus on the quality

Make customers your evangelists

Maintain high team energy levels

Act swiftly to manage losses

Growth Examples

Growth over profitability?

Growth or hyper-growth?

Profitability?

Focus on Growth First.

Investors understand companies

benefit from economies of scale

as they grow so it's fine to put

off optimizing for profit and

focusing on growth.

User Growth Examples

Relentless focus

on growth before

figuring out

monetization

model

New vs Existing Customer Ratio

A good growth is anywhere between 5 – 7% a week/

Key Ways to Ensure Healthy Growth

1

Create a Viral Factor

Current users recruiting new users

With X initial users and viral factor Y less than 1, you can acquire users at a decreasing rate until you have X/(1-Y) users

2

Higher Retention Rate

Harder to switch to a competitor

Reflexive habit to use your product

Emotional attachment to your product

3

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