How can you tell if a startup is on the rise?

A PMF isn’t mandatory especially for startups that follow a vision rather a problem solving approach. Amateurs believe PMF applies to every company but some companies don’t become businesses until later

A rising startup stands out by bringing together crucial signs that show it's on the brink of something big. Think of a swell of investor interest and successful funding rounds—like getting big checks from savvy backers or teaming up with major players in the industry. Then there's the move into new markets or countries, a clear sign they're aiming high. Plus, all the positive attention they're getting from awards, media, and respected folks in the field adds up to a big thumbs-up. These pieces fit together to paint a picture of a startup that's about to make some serious waves.

A startup is on the rise when it strikes a balance between what it provides (such as a nice gadget or a useful tool) and what people truly want. It's similar to having a favorite snack that everyone enjoys - it's the perfect combination! This alignment between what the startup accomplishes and what clients require is known as "product-market fit." It's like witnessing everyone contentedly chewing on the snack, indicating that the startup's product is satisfying the proper appetites. A startup is on the rise when an increasing number of individuals choose and enjoy what it brings to the table, indicating that they've discovered that elusive product-market fit.

Every product does have some market fit and if goal of founder is to reach only the TAM for which the product is market fit, it's good to go . Because some corner pizza shop can be a global pizaa powerhouse . If you have a unique (unique in any way be it price point wise , geolocation wise or an outright unique product which solve a problem , your product is market fit . Your right communication about the product and a perfect story telling can make the product global

When Dropbox started, it solved a real and pervasive problem: the need for easily accessible and shareable cloud storage. It gained a large and loyal customer base rapidly. As for metrics: Customer Retention: Dropbox had a retention rate of over 90% among its paying users. Referral Rates: Dropbox’s referral program led to a 60% increase in sign-ups. Net Promoter Score: It has an NPS score of around 62, which is considered excellent. Revenue Growth: Dropbox went from $604 million in revenue in 2015 to $1.39 billion in 2019. For CXOs, understanding the life-cycle value of a customer (LTV) in relation to customer acquisition costs (CAC) can further validate product-market fit

Team should in my opinion should be like minded people even if that means going against the trend . Team should be family in truest sense where team members problem is everyone's problem and Company is Baby of the group which every team member has to take care of .

You can tell if a startup is successful by looking at its crew and how everyone gets along. It's like looking to see if they're all having fun working together. A good team is like a bunch of buddies that support one another out. When you see a startup with a crew that is enthusiastic about their job, you know they are on the right track. It is not enough to have brilliant individuals; they must also work well together. The "culture," or how everyone feels about working there, is also crucial. A cheerful and friendly environment promotes the growth of a startup. So, when you observe a startup with a well-functioning team and a positive attitude.

For CXOs, it's also crucial to understand the role of team and culture in scaling operations. A strong culture can significantly reduce the costs and time involved in onboarding new hires, which is crucial for a rapidly growing startup. According to research by the Society for Human Resource Management, the average cost per hire is approximately $4,129, and the average time to fill a position is 42 days. A cohesive culture can reduce both.

Exceptional founders and team synergy are paramount, particularly for early-stage startups where past performance data is unavailable for benchmarking. The team's ability to execute is the linchpin. I'd prefer to invest in a team with first-class execution and a third-class idea over teams with a first-class idea but third-class execution.

Having a competitive advantage, from my perspective, is like having a special power that sets your startup apart from others. It's about being different in a good way, like having a secret sauce for success. Imagine it as bringing something unique to the table that makes people choose your product or service over others. Whether it's a super-fast delivery, extra friendly customer service, or a one-of-a-kind feature, a competitive advantage is your special edge. I believe that for a startup to rise, it's crucial to figure out what makes it stand out in the crowd and use that uniqueness to win the hearts of customers.

Competitive advantages: 1. Quality 2. Customer Connect 3. Pricing These three in the same manner gives most competitive advantages

Let us take Tesla Tesla's electric cars are not just eco-friendly; they also offer high performance. Tesla's self-driving technology and efficient batteries set it apart. Tesla has expanded from cars to energy solutions, demonstrating scalability. Tesla has a cult-like following, with forums and social media communities dedicated to the brand. Tesla cars offer more range and self-driving features for a similar price compared to rivals like the Nissan Leaf. The cost and expertise required to develop electric vehicle technology act as barriers. Tesla's Supercharger network makes it costly for customers to switch to another brand. The more people own Teslas, the more charging stations are built, benefiting all Tesla owners.

For CXOs, understanding the nuances between different metrics is crucial. For example, high user growth with low engagement could signal a leaky bucket scenario. According to a study by Mixpanel, the average 90-day user retention rate across industries is only 20%, making this a key metric that CXOs should monitor closely.

If you have a large team , unlike ours connect to each and every customer to get maximum traction and if your team size is small like us make a system for automated personalised connect with customers .

In my view, traction and feedback are the lifelines of a startup's success. Traction is like the buzz and excitement, showing that more people are noticing and liking what you offer. It's the momentum that propels you forward. Feedback is the valuable information from customers that helps you steer in the right direction. It's about listening, learning, and making your product or service even better. For a startup to really rise, it's all about gaining traction and using feedback to keep improving.

What experts are saying. Product market-fit. Team and culture. Competitive advantage. Traction and feedback. Vision and ambition.

by analogy with surfing, your product is your board, the wave is the market. You can have a great product, but without a market your start-up will never take off.

Vision should be at least 10 years into future where your company stands and what's the final goal . Every member of the company (employees) should be treated as stakeholders and they should be given equity . No company wide decisions should be taken without consent of all.

For CXOs, it's not just about a grand vision but how well it aligns with executable strategy. According to a report by CB Insights, 9 out of 10 startups fail, and one of the top reasons is the lack of a market need for their product. Therefore, the vision should be balanced with market realities.

In my perspective, having a strong vision and ambition is like setting the North Star for your startup journey. It's about having a clear picture of where you want to go and the determination to get there. Imagine it as having a roadmap that guides every decision and action. Vision is like the big dream, and ambition is the fire that keeps it burning. It's crucial to dream big but also to work hard to turn those dreams into reality. For a startup to rise, it's about having a vision that inspires everyone on the team and the ambition to make that vision come true, step by step.

A startup that's on the rise generally has three key components that makeup their success: a strong product, a strong go-to-market strategy, and a strong, organized team. 1.) Strong product - Directly addresses a problem or need - Delivers new or increased value - Strong product branding and marketing - Well thought out end-to-end customer experience - Detailed competitor analysis 2.) Strong go-to-market strategy - Identified target market - Defined value proposition - Established pricing strategy - Sales & distribution channels strategy - Analysis of the market - Prospective customer insight 3.) Strong, organized team - Defined roles and responsibilities - Diverse skill set - Share the same mission/values - Growth Mindset