Tomasz Tunguz - Your Startup is a Series of Cycles

If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here.

Your Startup is a Series of Cycles

Oct 25, 2020 05:00 pm

I used to think of a startup as a series of funnels. There’s the customer conversion funnel, the recruiting funnel, the customer success funnel. Funnels simplify metrics. Examine the yield from each stage to gauge success. Start to finish.

I’ve been preparing my session for the NY Enterprise Tech Meetup later this week on the Essential Guide to SaaS Metrics. Thinking through that presentation and reflecting on some recent conversations, I’ve changed my belief. The superior mental model is a cycle.

The funnel stops at an end state. The cycle is a flywheel and builds momentum. That’s the key difference.

Attract a customer, engage them, sell them a contract, onboard them, ensure they achieve their objective. That’s the funnel. But add a step: solicit a testimonial, ask for a referral to a friend, cross-sell another product. The cycle starts again.

Attract a talented candidate, engage them, hire them, onboard them. That’s the end of the people funnel, but not the people cycle. Startups should manage, cultivate, and foster their employees, and this will drive the cycle again with referrals, better employee brand, and greater success with future candidates.

Modern leaders in each of the critical functions of startup teams have been telling me this for a while, describing it in different forms. But it took time to settle in. Measuring the funnel is the first step, but not enough. We have to measure the cycle and the strength of the flywheel.

That’s the lens I’ll be using from now on: cycles not funnels.


Read in browser »
share on Twitter Like Your Startup is a Series of Cycles on Facebook


 

Recent Articles:

Why IPOs, Direct Listings, and SPACs Will Flourish in Startupland
Just How Inaccurate are Quarterly Venture Capital Activity Reports?
The Mispricing of Software Companies
The 4 States of an Engineering Team
Notes from Office Hours with Kimbre Lancaster on How to Run Successful Virtual Events
Copyright © 2020 *|Tomasz Tunguz|*, All rights reserved.
You signed up to receive Ex Post Facto blog posts by submitting your email on tomtunguz.com

Our mailing address is:
Redpoint Ventures
3000 Sand Hill Rd
Menlo Park, CA 94025

Add us to your address book


Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.
 

Older messages

Why IPOs, Direct Listings, and SPACs Will Flourish in Startupland

Monday, October 19, 2020

If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Why IPOs, Direct Listings, and SPACs Will Flourish in Startupland Oct 18, 2020 05:00 pm Most high-

Just How Inaccurate are Quarterly Venture Capital Activity Reports?

Monday, October 12, 2020

If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Just How Inaccurate are Quarterly Venture Capital Activity Reports? Oct 10, 2020 05:00 pm Each

The Mispricing of Software Companies

Thursday, October 8, 2020

If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Mispricing of Software Companies Oct 04, 2020 05:00 pm Public software companies trade on

The 4 States of an Engineering Team

Thursday, October 1, 2020

If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The 4 States of an Engineering Team Sep 30, 2020 05:00 pm I've been steadily progressing

Notes from Office Hours with Kimbre Lancaster on How to Run Successful Virtual Events

Tuesday, September 29, 2020

If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Notes from Office Hours with Kimbre Lancaster on How to Run Successful Virtual Events Sep 28, 2020

You Might Also Like

Peppered Kitty and The Penal Guard 💂‍♂️

Tuesday, November 12, 2024

The breed of the non-human͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

🗞 What's New: HARO/Connectively is shutting down

Tuesday, November 12, 2024

Also: Use AI to beef up your security ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

the wizard of oz.

Tuesday, November 12, 2024

Read time: 53 sec. Today I want to tell you about Cristiano. He was part of our last Starter Story Academy sprint. And during his first two weeks, he was busy designing and tweaking his landing page.

💃 Beyoncé loves her products...here’s how she did it

Tuesday, November 12, 2024

The exact steps to build your beauty brand empire Hey Friend , We just launched our newest course, How to Build a Million Dollar Beauty Brand. In it, for the first time, Alicia Scott—founder of Range

[CEI] Chrome Extension Ideas #166

Tuesday, November 12, 2024

ideas for Amazon, Twitter, Developers, and Students ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

Navattic's PLG funnel with Natalie Marcotullio

Tuesday, November 12, 2024

In conversation with Navattic's Head of Growth about their product-led growth (PLG) funnel. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

You have one shot to sell your business 🤞

Tuesday, November 12, 2024

Just One Week to Go Until Exit Strategy Launches! ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Product manager is an unfair role. So work unfairly.

Tuesday, November 12, 2024

How to thrive in “the great flattening” by redefining work norms ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

Growth Newsletter #223

Tuesday, November 12, 2024

It's not "what" but "where" ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

All stock, 6-figure deal

Tuesday, November 12, 2024

Plus, overcome a big barrier to exit planning: owner dependency ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏