The 10 concepts I applied in my startup to scale to $1m ARR in 12 months

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@tibo_maker

3 months ago

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The 15 concepts I applied in my startup to scale to $1m ARR in 12 months:

I've sorted the concepts by these categories 1. Product Philosophy 2. Customer Acquisition 3. Scaling the Business To build a great product, keep these concepts in mind:

1. Quality emerges from Quantity The more iterations you put in, the better a product becomes. More Reps = Better Quality Example: Fan Design improvement with every iteration [img:cHHWGoJyb]

2. Minimum Viable Product The most stripped-down version of your product that still delivers the basic utility. Here's an MVP of an earthquake detector [img:lfS0O3pMV]

3. Pareto Principle 80% of your product value comes from 20% of the features. Focus on the 20% core functionality you need to build to generate 80% of the value [img:m5wk6o4qG]

4. Diminishing Returns: When you focus on improving the same product area, you will see that results add lower and lower value over time The 15th feature is not nearly as important to the user as the first core feature [img:_WCfMpuR7]

5. End-to-End Solutions: Build products and features to solve one problem end to end. Start by solving a core problem and then expand to solve all adjacent problems. Tweet Hunter was only about inspiration (core feature), then we expanded to an all-in-one Twitter tool

6. Iteration Speed The speed at which you incrementally improve your product. Constant testing, fixing, ideation, design and performance improvement are the mark of a product-led startup Eg: Tesla made 13 iterations to the Model Y Octovalve in 12 months [img:kgofE680l]

To Acquire Customers, keep these concepts in mind:

7. Sell the outcome, not the product @GuillaumeMbh shows what the user will get from using Lemlist (an email automating tool) on its landing page [img:ul32enzD9]

8. Customer Delight If your customers are satisfied, they will keep using your product. If your customers are delighted, they will tell everyone about it and get you more users. [img:ocD_B6_ia]

9. Viral Loops - Product Led growth Make your product so good that your customers become your outspoken advocates. Use organic referrals to drive customer acquisition [img:2PXQ9zZjV]

10. Leaky Bucket Growth = Acquisition - Churn If your customers aren't staying, you're wasting your energy Make a better product, fix the leak and then grow [img:4H0L8Uwu4]

To Scale your business, keep these concepts in mind

11. Playbook Creation vs Playbook Execution Early on, you need generalists (often the founders themselves) to invent the playbook. Later, you need specialists to execute it [img:AdFvif9o2]

12. Runway and Burn Rate The rate at which you're burning your resources determines how much time you have before you run out Spend optimally to ensure that by the time you run out, your startup is making enough profits to fund itself [img:x1-P7DHl1]

13. Economies of Scale As you do more of something, it becomes cheaper. Talent becomes specialized, processes get optimized, and fixed cost is distributed over thousands of units. Having a higher scale than competitors can be an advantage if used correctly [img:a8XH7KOiW]

14. Growth Flywheel Once a growth flywheel gets started, it spins faster and faster Amazon is the best example: more customers -> more sellers -> lower costs structures -> lower price to customers -> more customers [img:fowxUUxqw]

15. Defensibility Can someone copy your startup and succeed? Why not? Proprietary Technology can become a strong defense against competitors The harder your tech is to copy, the more defensible your startup will be, long-term [img:2k14x_D4S]

Hope you like this 🙏 If you do, consider following @tibo_maker for more about startup building And send even more love with an RT ♻️ on this thread: twitter.com/tibo_maker/status/1545783086339727366

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