Hypergrowth. Every startup wants it. Every investor in a startup wants it too. It means success. It means money. Hypergrowth also signifies that the startup idea is meaningful for the customers that are using it. That’s the core reason to startup the company in the first place…it’s not about the material things.
Seth Godin’s blog today is great because it gives a general path to hypergrowth. He says, “Fast growth comes from overwhelming the smallest possible audience with a product or service that so delights that they insist that their friends and colleagues use it.”
That is true. You should read the rest of his blog to see how he explains his point.
Finding product market fit with a small audience that is a proxy for a much larger audience is a great way to grow. When investors examine a company, we start extrapolating about where this company might potentially go. If we think it can get big enough and that the team can execute, we write a check.
Founders have to sell a road map to investors about how big they can be. Markets are never measured in millions they are always measured in billions. But, the first market that is the most crucial might be the one that takes you to $100,000.
I was talking to a startup the other day. We were talking about the future and my remark was, “Do one thing really really well.” In the short term, do one thing really great. The rest will come in time. But, in early days resources are scarce. Concentrate your energy on doing one thing great and you will find that you will do a lot of things great.