When Growth-at-all-Costs Makes Sense
Nov 03, 2024Growth-at-all-Costs makes sense when NRR is 100% or higher.
The problem many startups face is pushing too soon into the GaaC model while they're actually suffering from a leaky bucket (churn).
If your product retention isn't stellar, raising capital and promising hyper-growth to investors is a tough road to travel because your priority immediately becomes sales & marketing when it needs to be product and user experience.
Once your priority becomes sales and marketing, it's nearly impossible to ever make your product the priority again, it always takes a back seat because there can only be one front seat.
There's no way to reverse this momentum without something like a down round or massive change in plans that investors are unlikely to agree to.
For this reason, the best startups of the future will take their time flawlessly perfecting their product before pushing for hyper-growth.
Learn from the mistakes of those who came before you.
Salespeople, work only for companies who do this correctly.
I spoke to Colin Specter on this topic and more.
Check the featured section of my profile for the full conversation.
It's LOADED with golden nuggets.
I've always said GaaC makes sense when the PMF is really awesome, but Colin had a much better way of breaking this down by speaking about the NRR and the leaky bucket (churn). He hit the ball out of the park on every single topic in this conversation.
Full episode available on YouTube, Rumble, Spotify, and Apple Podcasts.
Happy Selling,