Goal of this stageReach £10k of monthly recurring revenue from customers who found you through channels you can repeat.
This is where most tech startups stall. The product works, but customers do not arrive on their own. The job now is demand generation, user acquisition and conversion, and looking after the customers you win.
The three steps
- Demand generation. Pick two or three channels where your customers already are: direct outreach, LinkedIn, communities, partners or events. Test them properly before adding more.
- User acquisition and conversion. Map the journey from first touch to paying customer. Measure every step and fix the biggest drop-off first.
- Customer support. Your first customers are your best salespeople. Respond fast, fix issues and ask for referrals and case studies.
Numbers to track weekly
- New conversations, demos and trials
- Conversion rate at each step
- MRR, churn and cash in the bank
Common mistakes
- Raising money to “solve” a sales problem. Investors want to see the sales engine first.
- Pricing too low. Charge for value, and test price early.