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Andy Budd: The Growth Equation: 7 Essential St...

Turing Fest
July 24, 2024
47

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.

Turing Fest

July 24, 2024
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Transcript

  1. ` ` While these two stories are fictionalised, they’re a

    good example of the sorts of challenges I come across every day.
  2. ` ` @andybudd I’m Andy, a design and product leader

    turned investor, advisor and coach. Hello Edinburgh,
  3. ` ` I help founders figure out their GTM strategy,

    find early clients and iterate towards PMF.
  4. ` ` A lot of the growth advice I see

    out there is already assuming you have PMF.
  5. ` ` A guide to help early stage startup founders

    land their first million and reach PMF
  6. ` ` Over the years I’ve spotted a number of

    patterns which tend to trip people up.
  7. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) /

    (μ, C)] The Growth Equation } 7 elements which majorly impact growth.
  8. ` ` 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)]
  9. ` ` 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)]
  10. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) /

    (μ, C)] The Growth Equation } } } The Market part of Product-Market Fit
  11. ` ` 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.
  12. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) /

    (μ, C)] The Growth Equation } M= Motivation How motivated your audience is to find a solution.
  13. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) /

    (μ, C)] The Growth Equation } C= Competition How strong the competitive landscape is.
  14. ` ` Many founders fail at the market side of

    PMF because they believe the best product always wins.
  15. ` ` When acquisition falls flat, the temptation is to

    add more features—sometimes described as The Next Feature Fallacy.
  16. ` ` What are some of the things Barry can

    do to solve his market problem? Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)]
  17. ` ` 1. Find the right beachhead 2. Nail the

    proposition 3. Pick the right channel 4. Founder-led growth
  18. ` ` 1. Find the right beachhead 2. Nail the

    proposition 3. Pick the right channel 4. Founder-led growth
  19. ` ` 1. Find the right beachhead 2. Nail the

    proposition 3. Pick the right channel 4. Founder-led growth
  20. ` ` 1. Find the right beachhead 2. Nail the

    proposition 3. Pick the right channel 4. Founder-led growth
  21. ` ` 1. Find the right beachhead 2. Nail the

    proposition 3. Pick the right channel 4. Founder-led growth
  22. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) /

    (μ, C)] The Growth Equation } } } The Product part of Product-Market Fit
  23. ` ` 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.
  24. ` ` 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.
  25. ` ` 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.
  26. ` ` 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.
  27. ` ` What can Marta do to solve her product

    adoption problem? Growth = ƒ[(A, M, ΔV/t, S, K) / (μ, C)]
  28. ` ` 1. Align positioning 2. Nail user onboarding 3.

    Remove friction 4. Embed usage loops
  29. ` ` 1. Align positioning 2. Nail user onboarding 3.

    Remove friction 4. Embed usage loops
  30. ` ` 1. Align positioning 2. Nail user onboarding 3.

    Remove friction 4. Embed usage loops
  31. ` ` 1. Align positioning 2. Nail user onboarding 3.

    Remove friction 4. Embed usage loops
  32. ` ` 1. Align positioning 2. Nail user onboarding 3.

    Remove friction 4. Embed usage loops
  33. ` ` 1. Align positioning 2. Nail user onboarding 3.

    Remove friction 4. Embed usage loops
  34. ` ` 1. Align positioning 2. Nail user onboarding 3.

    Remove friction 4. Embed usage loops
  35. ` ` 1. Align positioning 2. Nail user onboarding 3.

    Remove friction 4. Embed usage loops
  36. ` ` 1. Align positioning 2. Nail user onboarding 3.

    Remove friction 4. Embed usage loops
  37. ` ` 1. Align positioning 2. Nail user onboarding 3.

    Remove friction 4. Embed usage loops
  38. ` ` 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.
  39. ` ` 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.
  40. ` ` I’m a huge fan of Product Led Growth.

    Just remember that PLG only works if you already have users.
  41. ` ` Even the most viral products need a kick

    start of users, which typically comes from founder-led sales and marketing.
  42. ` ` Growth = ƒ[(A, M, ΔV/t, S, K) /

    (μ, C)] The Growth Equation } 7 elements which majorly impact growth.
  43. ` ` @andybudd Design Leader . Investor . Advisor .

    Coach Join the book waitlist thegrowthequation.info