By Sean Fenlon on June 2, 2023
This post is not 100% written by me. This post is also not 100% written by AI.
I will leave it to the readers of this post to guess the shades-of-gray percentage :-)
Growth
Growth is the crux of startup culture and development.
Growth, is the ballet that defines startups.
In the startup landscape, this is THE defining parameter.
Growth isn’t merely a consequence — it is the core that governs a startup’s existence and functioning. If a startup is the vehicle driving towards success, growth is its fuel.
The real challenge here is not just achieving growth but maintaining it, making it consistent, and keeping it at an accelerated pace.
The lifecycle of a startup can be segmented into three phases: slow growth, rapid growth, and then a tapering growth.
The second phase, that of rapid growth, is the most crucial. This phase is analogous to the ‘take-off’ stage of an airplane. As much as this phase is about accelerating, it is also about stabilizing. The challenge is to find a balance, to keep increasing the altitude while keeping the plane steady.
A key to unlocking consistent growth is to fixate on the growth rate.
It is imperative that Founders spare their primary focus to GROWTH RATE.
This is not just a number. It’s a reflection of the startup’s health, an indication of its potential, a prediction of its future.
The magic number that founders should strive for is at least 7% growth per week.
While this number might seem daunting, remember that it is a target to strive for, not a goalpost that defines success or failure.
However, the path to growth is not a linear one. It comes with its share of obstacles and failures. But it’s these failures that make for essential learning experiences.
To meet growth targets, startups might need to hire more employees/execs, refine their product, or re-calibrate their business strategy.
But, the focus should always remain on immediate growth.
The pursuit of growth often leads to new, untapped ideas.
In the quest for increased numbers, startups might discover new markets, pockets of un-met demand, or brilliants solutions to big problems.
Startup are not a lone entity — startups exists in super-position and in a symbiotic relationship with growth. The two fuel each other, enabling startups to reach unprecedented heights.
Tech startups often seem like they operate in a similar landscape. Both are driven by an entrepreneurial spirit, both need to satisfy customers/users, and both need to make profits. However, the difference lies in their approach to growth. A startup is like a scientist in a lab, always tinkering, always experimenting, always striving for a breakthrough.
Growth in the startup world is a high-stakes game. A minuscule change in the growth rate can significantly alter the startup’s trajectory. And it’s this challenge that makes the startup arena so exciting, so enticing. A mere 1% chance of high success can motivate founders to gamble their time, energy, and resources.
While startups are certainly a high-risk venture, they are also an arena of high rewards. The game isn’t for the faint-of-heart.
The goal isn’t just success but massive, accelerated success. Like a race, not every participant will cross the finish line. But those who do, do so with flying colors.
Investors play a significant role in a startup’s journey. VCs fuel a startup’s growth.
The startup arena is a playground for VCs, hunting for businesses with the potential for rapid growth. An investor’s dream is to find startups that can reward their risk with a massive exit via unprecedented profits, an Initial Public Offerings (IPOs), or via acquisition.
The money startups raise is used to fuel their growth, akin to buying insurance against competition and market dynamics. This inflow allows startups to focus on their product, innovate, and scale rapidly. It’s a two-way street where VCs need successful startups, and startups need the capital that VCs bring to the table.
Startup growth is more than just a metric. It’s a powerful tool that can double the value of the startup. Acquirers are always on the lookout for startups growing rapidly and are ready to pay a premium for such entities.
Growth is the primary force driving Founders, investors, and acquirers. Startups are a rational choice in an economic system, an embodiment of high-risk, high-reward ventures.
It’s a long, winding road with no shortcuts. The destination, however, can be worth every setback, every failure, and every sleepless night. It’s a journey of discovery, of growth, and of creating something impactful.
Entrepreneurial Spirit = Startups = Growth
