Why focusing on growth-at-all-costs isn’t the golden ticket

Hi 👋

Finding your first customers is an ongoing battle for some founders. So what should you do to get your product seen and picked up in the market?

Earlier this week, we talked to Lee McQueen, CEO, and Founder of Phoenix51- a talent assessment platform that is creating a fairer workplace for everyone. Lee, who won The Apprentice in 2008, shared some actionable insights to help you fuel your startup.

Here are a few takeaways that Lee shared:

⚡Validate your startup idea
In the early days, Lee asked professionals in his network to review his business idea. The suggestions and feedback he received for Phoenix51 helped him to shape and develop the platform.

Idea verification is the process of testing your startup idea to understand its viability. Start by defining a problem, the solution you’re keen to offer, and your target audience. Share these ideas among your network or mentors to get feedback.

It is cost-effective to verify your idea through conversations with your target audience, found within your network, prior to investing in the product build or initial marketing.

A startup advisor or mentor can be your best bet to validate your business idea. Is there a business idea that you want to share with us? Let us know by reaching out to us here.

⚡Don’t put all your eggs in one basket
Ensure you spread the risk, so don’t focus on only a couple of big clients. As a rule of thumb, each client should be accountable for no more than 12% of revenue.

Clients and customers changing their minds are commonplace, but having a range of clients can de-risk your business growth. So, how do you build a sales pipeline?

Begin with identifying your ideal customers. Next, locate individual decision-makers within a company and create content to help them understand what you are offering. Finally, consider who in your team is best to meet with each of the decision-makers to match skill sets and interests.

⚡Hire people with similar core values
Phoenix51 developed a strong team and board to achieve its planned mission. Lee emphasised the importance of hiring team members that share similar core values to help develop a cohesive working culture.

Look out for candidates who match your core values and have the complementary skill setto grow your startup. The right team will offer high-quality work and therefore, the results.

Focus on quality over quantity
Lee refocused his team at his earlier venture, Raw Talent, from a pure revenue goal to creating a profit-focused pipeline of opportunities. This approach helped them to reach clients that helped the company flourish and produced higher profit margins (albeit at the expense of the glory-getting revenue numbers.)

The takeaway is, do not focus on growth at all costs, work on ensuring you have a profit-focused approach to keep your business buoyant at all times.
How did you build a long-term relationship with customers? If you would like to share your journey or have any questions on how to tackle it — we would love to hear from you!

Lucy 👋

PS: Our next LinkedIn Live is on 18th October at 12pm and we’ll be chatting with Ally Fekaiki, Founder at Juno. There’s a special offer for you from Juno. Save your seat here.

PPS To watch the full interview with Lee, click here.