Want to learn the best business insights from remarkable speakers at Slush 2023, but don’t have the time to watch the full speeches on YouTube?
You’ve come to the right place. Below is a summary of a speech by Teri Yu, Head of Product of Kajabi.
(psst: the notes were automatically generated with Wudpecker's AI notetaking tool. If you'd like to check these notes + transcript + audio recording without needing to log in, press here.)
<p class="h1-rich">🤏 TL;DR</p>
TL;DR: Lessons from building a startup include having a mission, commitment, and building a sell-worthy business. Product-market fit is crucial for success and growth, and pivoting in response to challenges like COVID-19 can lead to increased revenue. Founders should focus on building leverage and exploring multiple acquisition options, and finding fulfillment in the journey of building a startup is important. Action items include identifying the desired outcome, focusing on building a sell-worthy business, ensuring strong fundamentals and high growth, and avoiding mentioning "acquisition" when considering investments.
<p class="h1-rich">✨ Summary</p>
Lessons from Building a Startup
- Founder's motivation comes from having a mission that they believe in.
- Building a successful startup requires commitment, hard work, and sacrifice.
- Focus on building a sell-worthy business rather than a sellable business.
The Importance of Product-Market Fit
- Product-market fit is crucial for building a valuable and successful business.
- Building a delightful product that customers depend on leads to strong fundamentals and high growth.
- Investors are more interested in companies with strong traction and growth potential.
Navigating Challenges and Pivots
Adapting to COVID-19
- COVID-19 posed a significant challenge for the company's community-focused model.
- The team brainstormed and pivoted to online meetups and challenges.
- The pivot led to increased revenue and month-over-month growth.
Managing Troughs and Overcoming Obstacles
- The company faced co-founder changes, product fires, and key employee departures.
- Resilience, grit, and persistence are necessary qualities for founders.
- Low points and challenges are a normal part of the startup journey.
Considerations for Acquisition
- Founders should focus on building leverage and exploring multiple acquisition options.
- Factors to consider in M&A deals include product-market fit conviction, founder energy, market timing, and financial return.
- Negotiating deal terms involves considering cash versus stock, upfront versus earned payout, time period to earn out, and contract terms.
Life Post-Exit
- Post-exit, founders may experience mixed emotions, including aimlessness and depression.
- Happiness is a state of gratitude rather than possession.
- Founders are encouraged to find fulfillment in the journey of building a startup.
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