How to get Your First Customers

Executive Summary:

  • Founders should personally handle sales in the early stages to deeply understand customers and maintain control over the startup's destiny. Sales is an easy skill for founders to learn as they are experts in the problem and product.
  • Founders need to learn sales by actively doing it themselves, not just theoretically. This gives them full control over their startup's destiny.
  • The sales process includes prospecting, outreach, demos, pricing, closing, and onboarding. Prioritize the easiest/best-fit customers first and use a CRM to track sales metrics.

Meeting Notes:

Getting from talking to users to getting your first startup

  • The "do things that don't scale" mindset is crucial in the early stages - a good product is rarely built in isolation but together with customers
    • Founders should be the ones handling sales themselves early on, as it helps them: Learn about their customers deeply, Have full control over the startup's destiny
  • Sales is one of the easiest skills for founders to learn because: They are experts in the problem they are solving, They are experts in their own product
    • Examples of founders who did sales themselves early on: Tony from DoorDash, Matt Hill from Skarnik, Steve Jobs

Learning sales tactics and mindset

  • Founders need to learn sales by actually doing it themselves, not just theoretically
    • Doing sales themselves gives founders full control over their startup's destiny
    • Sales is an easy skill for founders to pick up because: They are experts on the problem and product
  • Example: The Brecht founders (Pedro and Enrique) actively onboarded their first 10 customers themselves during YC

Executing the sales process

  • The sales funnel includes: 1. Prospecting, 2. Outreach, 3. Demos, 4. Pricing, 5. Closing, 6. Onboarding
    • Prioritize the easiest/best-fit customers first, don't be afraid to let poor-fit customers go
    • Use a CRM to track sales metrics and conversions through the funnel

Pricing and charging for your product

  • Offering free trials or unpaid pilots is a mistake - charge from the start
    • Charging shows you provide real value, It helps overcome fear of getting rejected on price
  • Options: Money-back guarantee, ability to opt-out of annual for monthly pricing

Working backwards from your sales goals

  • Understanding/tracking drop-off rates in the sales funnel is crucial
    • Extensive outreach is needed to capture enough qualified leads
  • Don't conclude sales isn't working based on small outreach numbers
    • More data is needed to understand real conversion rates
  • Examples of startups' initial sales motions: Cold email outreach, Product-led growth approaches

Resources and recommendations

  • Recommended CRM/sales tools: Apollo.io, Close.com, Pipedrive, Hunter.io
    • Recommended reading: "Founding Sales" book, The Learning newsletter
  • Even if end-growth is scalable channels, startups should begin with manual outreach/sales tactics
    • Scalable channels didn't acquire Airbnb's first customers