A couple of weeks ago we summarized some tips on how to uplift your startup. These simple rules would help you to stay away from the startup’s graveyard. And as we promised here comes the ultimate startup’s growth hacking guide part II! In this week’s post we would give you some more recommendations from our experience what to avoid and what to improve while creating your first venture. So buckle up and lets dive into it!
How bad marriages affect startup’s growth hacking
Since your MVP is launched you gained some attention. And then dating with the VC’s start. There is no doubt that the main startup’s growth hacking fuel is precious dollars (in the EU euros- of course). FYI a relationship with a VC is not a one night stand with a date from Tinder it is more like long, challenging marriage. Actually it is an even more binding relationship though. It is nerve-wracking since the beginning: you come to their office and try to impress your new “date” with an idea. If You get lucky You will start a relationship. But in this relationship, VC eventually takes a part of your assets. And then there is no way back. And for every decision, You have to compromise. Long story short, there are no ways back, you cannot divorce like in a traditional marriage.There are alternatives for financial startup’s growth hacking though. For example convertible note, safe note or a kiss note. These funding vehicles provides investors funding to the company in exchange for the right to convert its investment to equity upon some future event, when an equity round is raised and preferred shares are issued: the investor will receive shares in the subsequent offering, often at a discount to the price that other investors pay in that offering. So as we mentioned, be careful with the funding because bad marriages can stop your startup’s growth hacking.
Keep the flies off
As we developed our first MVP a lot of “consultants” appeared. Literally, tons of them. They started “advising” about startups and tried to pair us with shady VC’s (probably the ones which their friends have established). In this paragraph it is worth mentioning accelerators too. They often promise uncompromisable your startup’s success! But what is hidden behind those statements is that they would probably squeeze out tons of your equity and would also sell you shit tons of services from their partners. At the end of the day you have a stable startup, which generates you a stable, average salary, you lose a big pie of your equity and you do not scale globally. Boom, you lose pretty much everything and do not establish a new Facebook. Your startup’s growth hacking mechanism stops. And yet we are still wondering, whether Zuckerberg would have participated in an accelerator if there was any…?From our experience, we can say that a lot of professionals are willing to help you for free. They want help with new startup’s growth hacking and be your mentors. Just network a lot and do not be afraid to ask them! They happily give you some feedback and give valuable information from their experience. So just grab your PC and start networking on Linkedin.
Pivot for startups’ growth hacking
Hypothetical situation: you make an MVP of your big idea. Bugs are combated and everything is working as You imagined. But early adopters do not like it and most of them suggest to change the main feature 90%. Of course, Your ego is shattered. You keep telling to yourself that they are stupid and do not know anything. The truth is that the market knows the best. And in these situations you should look forward to pivoting, not trash-talking about your users. Sometimes it is not all about the user needs. You could also develop a brilliant algorithm, but face some legal problems which would not allow you to use it in some way. In this situation pivoting also works. It is one of the saving mechanisms for startup growth hacking. For example, we could take a Slack. The developers were developing one product but eventually, it did not take off. So they just launched a messaging app that they used for their own communication. Nowadays it is worth over 10 billion. So it is not a tragedy if your product is unpopular- just change the route and re-create something that people love! Just do not be afraid.
So here are more lessons to learn before launching your venture. Keep those things in mind while working with it. There are even more things to tell so we do not say goodbye and prepare yourself to part III!