Key Moments

How to Get Started, Doing Things that Don't Scale, and Press (How to Start a Startup 2014: 8)

Y CombinatorY Combinator
Science & Technology3 min read53 min video
Mar 27, 2017|57,625 views|1,143|21
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TL;DR

Startup founders must "do things that don't scale" to learn and validate ideas, get early users, and secure press.

Key Insights

1

Early-stage startups should prioritize "doing things that don't scale" to gain deep customer understanding and validate their business model.

2

Manually executing tasks initially helps founders become experts in their business operations and identify areas for future automation.

3

Acquiring the first users is exceptionally challenging and requires significant personal effort, time, and a disregard for immediate ROI.

4

Delighting early customers through exceptional, personalized experiences can turn them into invaluable champions for the brand.

5

Press coverage should be approached strategically with clear business goals, rather than as a vanity metric.

6

Foundations for press coverage are built on having a compelling story, leveraging warm introductions, and nurturing reporter relationships.

THE POWER OF DOING THINGS THAT DON'T SCALE

Stanley Tang, founder of DoorDash, and Walker Williams, founder of Teespring, both emphasize the critical importance of "doing things that don't scale" in the early stages of a startup. This involves manually performing tasks that are unsustainable for large companies, such as being the delivery drivers or customer support team. This hands-on approach allows founders to intimately understand their operations, customer needs, and identify genuine product-market fit before investing in scalable solutions.

VALIDATING IDEAS THROUGH EXPERIMENTS

Instead of extensive planning, startups should treat their initial ideas as experiments. Stanley Tang shares how DoorDash began with a simple, one-hour-old landing page (paltodely.com) to test demand for food delivery, directly collecting orders via personal phone numbers. This rapid, low-fidelity launch allowed them to quickly ascertain if a genuine need existed before building complex infrastructure, validating the hypothesis that people wanted local delivery.

ACQUIRING EARLY USERS AND BUILDING LOYALTY

Securing the first users is often the hardest part of a startup's journey, requiring immense personal effort and time without immediate return on investment. Walker Williams likens this to pushing a boulder uphill, where the initial incline is steepest. Founders must be willing to dedicate significant personal energy, whether through direct outreach, networking, or exceptional customer service, to delight these initial users and transform them into champions who advocate for the product.

LEARNING FROM CUSTOMER INTERACTIONS

Directly engaging with customers provides invaluable insights that cannot be gained otherwise. Founders should actively run customer service, respond to all feedback (even negative social media mentions), and proactively reach out to both current and former customers. This direct interaction helps identify pain points, refine the product roadmap, and ensure customers feel valued, turning potentially negative experiences into opportunities for loyalty and improvement.

STRATEGICALLY APPROACHING THE PRESS

Justin Kan stresses that press coverage should not be an arbitrary goal but should serve specific business objectives. Whether it's to attract customers (like Exec's local San Francisco focus), position the company for investment (Social Cam), or reach a specific industry (Twitch targeting the gaming world), clear goals are paramount. Understanding the types of stories that resonate—product launches, fundraising, milestones, or compelling 'stunts'—is key to effectively pitching reporters.

EXECUTION AND RELATIONSHIP BUILDING FOR PRESS

Obtaining press coverage involves a systematic approach akin to a sales funnel. This includes crafting a compelling story, leveraging warm introductions to reporters, securing face-to-face or phone meetings to invest their time, and preparing a structured pitch. Following up with essential collateral and maintaining fresh relationships with journalists is crucial for sustained coverage and managing the narrative, especially in challenging situations.

THE ROLE OF PR FIRMS VERSUS FOUNDER EFFORT

While PR firms can assist with contacts and logistics, founders are strongly encouraged to handle press outreach themselves in the early stages. Hiring expensive PR firms prematurely is often not a good use of startup capital, as they cannot intrinsically define what makes a company interesting. Founders must develop this ability themselves, understanding that press coverage is a relationship business best managed directly, especially when aiming for consistent visibility.

ITERATING RAPIDLY FOR PRODUCT-MARKET FIT

Startups should prioritize speed and iteration over perfect, scalable code in their initial development phases. Walker Williams highlights the need to create solutions quickly to test features and achieve product-market fit, even if it means temporarily duplicating codebases or employing 'duct tape' solutions. The focus should be on addressing the immediate needs of the next order of magnitude of users, rather than over-engineering for a future that may never materialize.

Startup Growth and Press Strategy Cheat Sheet

Practical takeaways from this episode

Do This

Test your hypotheses like experiments.
Launch your product as quickly as possible.
Do things that don't scale in the early stages.
Talk to your users constantly to understand their needs.
Delight users with exceptional experiences to turn them into champions.
Optimize for speed over scalability in early development.
Define clear business goals for seeking press coverage.
Target press relevant to your customer base (e.g., local for local services).
Get introductions to reporters through mutual contacts.
Schedule meetings (in-person or phone) with reporters to build rapport.
Prepare your story pitch thoroughly, including key points and details.
Follow up with reporters before your news goes live, providing collateral.
Build and maintain relationships with journalists.
Help other entrepreneurs get coverage to foster reciprocal relationships.
Learn the press process yourself before hiring PR firms.
Plan a regular cadence of news or announcements to maintain visibility.

Avoid This

Don't spend months building a sophisticated system before testing the idea.
Don't expect immediate ROI from early efforts.
Don't give away your product for free as a primary strategy.
Don't neglect customer service or making issues right, as one detractor can significantly harm momentum.
Don't get bogged down in writing perfect, scalable code in the very early stages; prioritize speed.
Don't aimlessly seek press coverage without a specific business goal.
Don't expect reporters to drop everything for a launch announcement without lead time.
Don't rely solely on email exchanges with reporters; aim for personal interaction.
Don't consider press coverage as the sole metric of success; focus on users and revenue.
Don't expect to get covered every week unless you're a major company like Google.
Don't hire expensive PR firms too early; try managing press yourself first.
Don't assume everything you're doing is interesting to the public; objectively assess story potential.

Common Questions

DoorDash began as an experiment in Palo Alto, California, when the founders created a simple landing page called Paltodely.com to test demand for restaurant delivery. They manually handled deliveries initially.

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