In 66 months, I helped grow Gong from $200k ARR to $7.2B in valuation and worked alongside some of the planet's best sales leaders. Here's the 6 biggest lessons I learned:
1. Overinvest in great marketing early on.
I’m still shocked at how few startups do this. Sales with no (effective) marketing early on to pave demand and provide air-cover is a brute-force way to build.
2. Measure twice, cut once when hiring leaders.
Your first leadership hires will have cascading effects on your company that ripple through many years. Their fingerprints will weigh heavy on everything from your sales motion, to company culture, to the people they hire, whether you want it to or not. Even after they’re gone. Recruit and hire accordingly.
3. Beat the hell out of what’s working.
Finding what works in growing a startup is like drilling for oil. You’re going to drill a number of "wells" and come up dry. But soon, you’ll find one to go DEEP with. Drill it for all it’s worth. Don’t screw around trying to find too many other oil wells when you haven’t even maxed out your best one.
4. Hire salespeople who thrive on ambiguity.
Not just those who CAN do that, but those who LOVE to do it (because they'll be doing this for a while as your market evolves). Do this, and you’ll accelerate your learning curve to a repeatable sales motion. Hire entrepreneurial reps.
5. Inject risk into the business as you scale.
As you scale, your “portfolio” of growth initiatives should contain more and more risk. It's as if you're a fund manager. Early on, find what works and cling to it. But as you grow and you’re able to rely on several well-established growth vectors, start to introduce risk into your portfolio. Examples: Experimenting with channel partnerships, international, new segments of the market or use cases.
6. Realize the "growth at scale" playbook is different than the "scale up" and "startup" playbooks.
What got you to $50M or $100M will not get you to the next level by itself. The path to $100M, and going beyond that (“growth-at-scale”) are two very different situations demanding different means of growing.
Early on, nothing matters but (the right) customer acquisition, controlling churn, and making your product absolutely amazing.
But if you’re going to continue growing at a fast rate, several other methods have to start firing: high net dollar retention (NDR), multi-product and multiple streams of ARR, going hard and fast on international expansion, and crossing the chasm into “low tech” industries.
This list is non-exhaustive.
For those of you who have ridden that tornado, what would you add?
P.S. Turn "open opps" into paying customers at any phase of growth with these 10 closing motion scripts: https://lnkd.in/gtxYd9Vs
Talent Acquisition Leader @ Spectrum | MBA, Employer Branding
10moSpending time with our Spectrum Scholars in Stamford at our annual summit.