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This has been our strategy. We bootstrapped as long as we could. We got 1 & 1/2 products live. But with a long sales cycle, and security certificate requirement
by RileyJames 3y ago
This has been our strategy. We bootstrapped as long as we could. We got 1 & 1/2 products live. But with a long sales cycle, and security certificate requirements, we needed funding to cross that chasm. We’ve raised one round and our goal is to get to break even. Our competitor have gone the other route, VC after VC, and while it’s enabled them to grow, it’s left a bad taste in their customers mouths (who’ve effectively been burned and churned). It’s made it easy to differentiate ourselves, and our motivations, and ultimately win their business.
- em-bee 3y agoi don't see how growing faster leads to burning customers. your competitors must have been doing something else wrong.
- sirspacey 3y agoThis is almost always the case. Growth at all costs often means “if it doesn’t win a new customer it doesn’t matter.” It’s takes concerted, continual focus to ensure customers actually solve their problem & renew. If that’s not a priority, you don’t hire the people with the DNA & skillset to deliver it. Many startups are learning that you can’t just pivot your strategy from acquisition to retention. Your product, your team, your culture all have to make major changes to succeed at it. Of course, you don’t have to be bad at fulfillment and retention to win new customers. But you won’t be able to allocate as many resources to acquisition.