When it sucks

The Myth of Linear Growth

One of my first business advisors responded to our financial model by saying, “God does not work that way.” He went on to explain that the linear growth projected was not realistic. “Something will go wrong,” he elaborated. As the months progressed, it turned out he was right.

The bitter cycle

Sales leaders describe the importance of a pipeline. This is a funnel of prospects at various stages of the buying journey. As more people close or drop off, never to buy, the top of the funnel must be replenished with new potential customers. When we fail to fill the pipeline continually, it eventually goes dry, leaving us to desperately try to close business, which is terrible for the company.

When we’re wrong

The exception to needing more in the pipeline is when you are trying to sell a “nice to have” product or, worse yet, a product that no one wants. When this happens, no amount of prospects or funding will save the company. When facing such challenges, it is best to restart by talking to the customer population you want to serve. Do not ask, “What problem do you need solved?” Instead, start a conversation with, “It turns out that the problem we are solving is unimportant. Can you tell me why that is?”

A time for everything

Many founders need clarification about where to place the most effort: marketing, branding, or sales. However, it is all about generating revenue. During the early days, everything should be focused on sales, as without it, marketing will not matter. The same holds for branding. Before Apple became a world-class brand, the Steves began by selling computer boards. They started marketing and brand building only after they sold hundreds of computers and raised funds.

Let it burn

Much of building a company involves pain and stress. There is no happily ever after in business. The problems grow with revenue, and there is always something on fire. Sometimes, you have to ignore problems in order to grow. PayPal let the phone ring with angry customers to focus on scale. After hitting a revenue goal, they built a customer service department to fix the mess.

Everything hurts

Your body hurts after running a marathon, competing in a 100-mile bike ride, or any endurance event. Some people feel sick; others must wait a few days before returning to normal. This is part of the process. The same is valid for building a company. It is a marathon, and running for long periods hurts. For this reason, surround yourself with supportive people who believe in you. Nothing is worse than getting hit in the mouth for days only to hear criticism from your friends and family.

Spurts of joy

A big deal closing, a funding round occurring on schedule, or a critical employee joining the team are all exceptions, not the rule. Most days are spent trying to make things happen with little to show for it. It goes back to the pipeline. Have a constant supply of potential customers, employees, and investors at various stages of action. This will make the lows hurt less while giving you more opportunities to experience the highs.

Thank you for reading,

Todd Moses (CEO)

[email protected]