Andy Budd: The Growth Equation: 7 Essential Steps to Finding Product Market Fit

Well known UK design-leader-turned-VC Andy Budd outlines some of the common pitfalls which trip up early stage founders (and essentially anybody trying to get a new project off the ground) and what they can do about it. Andy will walk us through the 7 key factors which form the backbone of his equation and guide startup growth. He’ll also share 9 key tactics you can use to help find early customers, build a GTM engine, land your first million in revenue and find Product-Market Fit in the process. This talk is going to be essential listening to startup founders, product leaders and those with an entrepreneurial spirit.

Transcript

1. ` ` Growth Equation THE @andybudd
2. ` ` Meet Barry, the amazing founder of Avocado Co.
3. ` ` Meet Barry, the amazing founder of Avocado Co.
4. ` ` Meet Barry, the amazing founder of Avocado Co.
5. ` ` Meet Marta, the amazing founder of Banana Co.
6. ` ` Meet Marta, the amazing founder of Banana Co.
7. ` ` Meet Marta, the amazing founder of Banana Co.
8. ` ` While these two stories are fictionalised, they’re a good example of the sorts of challenges I come across every day.
9. ` ` @andybudd I’m Andy, a design and product leader turned investor, advisor and coach. Hello Edinburgh,
10. ` ` I help founders figure out their GTM strategy, find early clients and iterate towards PMF.
11. ` ` Product - Market Fit
12. ` ` Product - Market Fit
13. ` ` Language - Market Fit
14. ` Product - Market Fit `
15. ` ` Product - Market Fit
16. ` ` Finding PMF Growth PMF X
17. ` ` 0 to 1
18. ` ` These strategies work for everybody launching a new product of service.
19. ` ` A lot of the growth advice I see out there is already assuming you have PMF.
20. ` ` A guide to help early stage startup founders land their first million and reach PMF
21. ` ` Over the years I’ve spotted a number of patterns which tend to trip people up.
22. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } 7 elements which majorly impact growth.
23. ` ` The Growth Equation isn’t definitive. There are hundreds of things which can affect growth. Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)]
24. ` ` However almost all the growth problems I see ultimately relate to one of these seven. Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)]
25. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } } } The Market part of Product-Market Fit
26. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } A= Audience Specifically having a larger enough audience who have the problem your product solves, are aware they have the problem and are aware that your product exists and solves that problem.
27. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } M= Motivation How motivated your audience is to find a solution.
28. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } C= Competition How strong the competitive landscape is.
29. ` ` Many founders fail at the market side of PMF because they believe the best product always wins.
30. ` ` The Field of Dreams Fallacy
31. ` ` When acquisition falls flat, the temptation is to add more features—sometimes described as The Next Feature Fallacy.
32. ` ` What are some of the things Barry can do to solve his market problem? Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)]
33. ` ` 1. Find the right beachhead 2. Nail the proposition 3. Pick the right channel 4. Founder-led growth
34. ` ` 1. Find the right beachhead 2. Nail the proposition 3. Pick the right channel 4. Founder-led growth
35. ` ` 1. Find the right beachhead 2. Nail the proposition 3. Pick the right channel 4. Founder-led growth
36. ` ` 1. Find the right beachhead 2. Nail the proposition 3. Pick the right channel 4. Founder-led growth
37. ` ` 1. Find the right beachhead 2. Nail the proposition 3. Pick the right channel 4. Founder-led growth
38. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } } } The Product part of Product-Market Fit
39. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } ΔV/t= Value delivery over time How quickly your product can start delivering value (TTV) and how constantly can it keep delivering value over time.
40. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } S = Stickiness Your products ability to work it’s way into your customers daily lives and have them keep coming back for more.
41. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } ΔV/t= Value delivery over time How quickly your product can start delivering value (TTV) and how constantly can it keep delivering value over time.
42. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } ΔV/t= Value delivery over time How quickly your product can start delivering value (TTV) and how constantly can it keep delivering value over time.
43. ` ` What can Marta do to solve her product adoption problem? Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)]
44. ` ` 1. Align positioning 2. Nail user onboarding 3. Remove friction 4. Embed usage loops
45. ` ` 1. Align positioning 2. Nail user onboarding 3. Remove friction 4. Embed usage loops
46. ` ` 1. Align positioning 2. Nail user onboarding 3. Remove friction 4. Embed usage loops
47. ` ` 1. Align positioning 2. Nail user onboarding 3. Remove friction 4. Embed usage loops
48. ` ` 1. Align positioning 2. Nail user onboarding 3. Remove friction 4. Embed usage loops
49. ` ` 1. Align positioning 2. Nail user onboarding 3. Remove friction 4. Embed usage loops
50. ` ` 1. Align positioning 2. Nail user onboarding 3. Remove friction 4. Embed usage loops
51. ` ` 1. Align positioning 2. Nail user onboarding 3. Remove friction 4. Embed usage loops
52. ` ` 1. Align positioning 2. Nail user onboarding 3. Remove friction 4. Embed usage loops
53. ` ` 1. Align positioning 2. Nail user onboarding 3. Remove friction 4. Embed usage loops
54. ` ` Designers play a vital role in nailing Product-Market Fit.
55. ` ` I regularly advise startups to have growth teams and feature teams.
56. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } K = Virality Your products ability to generate new users through word of mouth marketing, referrals and most importantly, natural use.
57. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } K = Virality Your products ability to generate new users through word of mouth marketing, referrals and most importantly, natural use.
58. ` ` I’m a huge fan of Product Led Growth. Just remember that PLG only works if you already have users.
59. ` ` Even the most viral products need a kick start of users, which typically comes from founder-led sales and marketing.
60. ` ` 1. Launch 2. GTM PMF 3. Profit
61. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)] The Growth Equation } 7 elements which majorly impact growth.
62. ` ` @andybudd Design Leader . Investor . Advisor . Coach Join the book waitlist thegrowthequation.info