Startup Roadmap: How to Find Repeatable and Scalable Growth Channels

Startup Roadmap: How to Find Repeatable and Scalable Growth Channels

In the world of startups, there is often a misconception that once you find Product/Market Fit, you can immediately scale your business. However, this approach doesn't work for B2B startups. Many B2B founders make the mistake of scaling their sales and marketing efforts without first finding a sales motion that is repeatable and scalable. This crucial step is often just as challenging as finding product/market fit and can take an unpredictable amount of time. Skipping this step can lead to wasted time and cash.

Standard salespeople are not good at defining a repeatable sales process. Hiring them before you have a clearly defined playbook will only result in a defocused company and wasted resources. It is the founders' responsibility, possibly with the assistance of a specialized salesperson, to find a repeatable growth process.

Before scaling your sales, it is important to validate your hypothesis by meeting enough buyers. Building a product without first validating the market demand can lead to failure. Similarly, hiring salespeople before founders have proven their ability to sell the product is a risky move. Scaling sales before the growth process is repeatable can also be detrimental to the success of your business. It's important to solve any churn problems and ensure SaaS profitability before ramping up your sales efforts.

When considering emerging acquisition channels, it's crucial to evaluate the potential of each platform. Some platforms may offer lower competition and more impression share, making them attractive options. For example, when Facebook introduced mobile advertising in 2012, HotelTonight took advantage of this new opportunity. By testing Facebook's mobile ads platform, they gained exclusive access to inventory before their competitors.

Mature platforms that are underutilized by the industry can also be valuable acquisition channels. For example, in 2019, HubSpot decided to double down on WordPress as an acquisition channel. While WordPress is not a new platform, the CRM industry was not leveraging it effectively. By connecting their organic traffic to WordPress plugins and themes, they were able to convert users into paying customers.

When choosing an emerging acquisition channel, it is important to consider the overlap between your target customers, the strengths of the channel, and your company's goals. If there is clear overlap in all three areas, it is worth investing time and resources into that channel. However, if there is no channel overlap or the channel does not align with your company's goals, it may not be a suitable choice.

There are four key attributes to consider when evaluating a channel: whether it is a new or expanded channel offering, the adjacency to your existing category, the growth stage of the channel, and the potential for monetization. Understanding these attributes will help you determine the potential of a channel and whether it aligns with your company's needs.

It is also important to consider your company's profile and resource allocation culture when exploring new channels. Are you a first mover, fast follower, or calculated settler? Each approach has its own benefits and drawbacks. Additionally, consider the foundation of your growth team and existing channel mix. If you have a well-established marketing machine, you may have more flexibility to explore new channels.

To make the most of emerging channels, it's essential to align your exploration with the channel's monetization vision. By helping the channel make money, you increase your chances of forming a successful partnership. Additionally, it's important to evaluate the growth loops and marketing channels you already have in place. If you have a single channel driving growth, it may be beneficial to explore other scalable channels. However, if you already have multiple channels in play, it's important to assess the risk/reward of adding a new channel to the mix.

In conclusion, finding repeatable and scalable growth channels is a crucial step for startup success. By following these steps and evaluating the potential of emerging acquisition channels, you can make informed decisions and maximize your chances of profitable growth.

Actionable advice:

1. Validate your market demand before building a product by meeting enough buyers.
2. Define a repeatable sales process before hiring salespeople and scaling your sales efforts.
3. Consider the overlap between your target customers, channel strengths, and company goals when choosing an emerging acquisition channel.