What Makes The Top 10% Of Founders Different? - Michael Seibel

What Makes The Top 10% Of Founders Different? - Michael Seibel

What is good retention - Issue 29 - Lenny's Newsletter

In the world of entrepreneurship, where the competition is fierce and the stakes are high, there is a select group of founders who manage to rise above the rest. These individuals, known as the top 10% of founders, possess certain qualities and strategies that set them apart from their peers. In this article, we will explore what it is that makes these founders different and how their unique approaches contribute to their success.

One of the key factors that distinguishes the top 10% of founders is their execution and formidability. Unlike others who may get stuck in the planning phase, these founders have a remarkable ability to take action and make things happen. They understand that ideas alone are not enough and that it is the execution that truly matters. They are not afraid to roll up their sleeves and get their hands dirty, tackling challenges head-on and finding innovative solutions.

Clear communication is another crucial attribute that sets these founders apart. They possess the ability to explain what their business does in just one to two sentences. This concise and effective communication not only helps them attract investors and customers but also enables them to rally their teams around a shared vision. By distilling complex ideas into simple and compelling messages, they are able to create a strong and unified sense of purpose within their organizations.

In addition to their execution and communication skills, the top 10% of founders exhibit a remarkable level of internal motivation. They are not easily discouraged when things go wrong. Instead, they view setbacks as opportunities for growth and learning. This resilience and determination allow them to bounce back quickly from failures and setbacks, enabling them to stay focused on their goals and push through even the toughest challenges.

Retention is another key metric that separates the top 10% of founders from the rest. In Lenny's Newsletter, it is mentioned that good retention for consumer social platforms is around 25%, while great retention is around 45%. Similarly, in the consumer SaaS space, good retention hovers around 40%, while great retention is closer to 70%. These founders understand the importance of keeping their customers engaged and satisfied for the long term. They invest in building strong relationships with their users, constantly improving their products and services to meet their needs and expectations.

So, what can aspiring founders learn from the top 10%? Here are three actionable pieces of advice:

1. Focus on execution: Don't get stuck in the planning phase. Take action and start building your business. The most successful founders understand that execution is key and are not afraid to get their hands dirty.

2. Master the art of clear communication: Learn to distill complex ideas into simple and compelling messages. Being able to explain what your business does in just one to two sentences can make all the difference in attracting investors and customers.

3. Embrace failure and learn from setbacks: Don't let failures discourage you. Instead, view them as opportunities for growth and learning. The top 10% of founders possess a remarkable level of internal motivation and resilience, allowing them to bounce back quickly and stay focused on their goals.

In conclusion, the top 10% of founders possess a unique combination of qualities and strategies that set them apart from their peers. Their execution and formidability, clear communication skills, and internal motivation contribute to their success. Additionally, they understand the importance of good retention and invest in building strong relationships with their customers. By adopting these qualities and strategies, aspiring founders can increase their chances of joining the ranks of the top 10%.