Startup Questions: Starting a Business, Startup KPIs and Product development

Hey guys! Good morning or afternoon
depending on where you’re watching today. We’re just gonna answer questions. We’re excited, we’ve got a bunch of questions from the community. We’re
trying to keep up with them as you saw in a video last week where we’re
starting to add questions to the end of each video but today we’re just gonna
dedicate you know I don’t five seven minutes to answering questions of you
guys sent over so alright so the first one comes from Saeed:
I have a naive question did you build the AI solution just for getting more
round of investment Silicon Valley buzz words or do you need to
differentiate your company with your competitor? I don’t think that neither of
them applies we really built it to build a better user experience in the way
Slidebean worked originally we used a set of rules that would arrange slides based
on certain characteristics and the type of content they had but slides ended up
looking rather similar and they weren’t cool like they didn’t stand apart. They
weren’t as cool as a slide that a designer would build because they were just
following rules the idea of kind of rethinking the way that worked and
building it on using AI was to make it look drastically better without the need
for for a human being to do it and then end up working rather well so no like
the reason is no it’s not just a buzzword we didn’t try to raise money
after this it’s more about providing the best user experience and the way AI has
evolved in the past few years it’s really the best option to providing a
better experience. Next up now question by Oduwin, alright: Amazing
video this is on the start mistakes video thank you very much would love a
video on what statistics a start-up should track or maybe which ones you
track in Slidebean and why. What KPI’s you find most important that’s pretty
good it really depends you know for teams for each team there’s a KPI that
they should be sticking to in our case I mean in like a company broad case it’s
probably around revenue it’s definitely around MRR in our case as a SAS
company so revenue, MRR, our churn rate for a SAS companies is a really
important metric which kind of derives into customer lifetime value into cost
of acquisition into margins again I’m talking specifically about a SAS company
growth rate is another metric that we report to investors and then investment
usually gets new investors interested in joining the business in our case we’re a
profitable company now so in the end you know probably our key metric is just are
we making money is a company in green or black numbers instead of red but yeah, each team will have its own KPI after that next up a question by Obieze: no team doing everything alone at this point what is the best way to
approach this in pitching that really depends on the business right I am a bit
of a skeptical in terms of solo founders not that it can’t be done there are
fantastic solo founders out there and fantastic companies both out by solo
founders but you know if ask me if you ask me I wouldn’t start my next company
alone we actually made a video about that go check it out no I wouldn’t start
alone because there’s so much to do as you start a company that you not only
need like the emotional support of having somebody who is suffering
suffering next to you but you know also an extra pair of hands to do all these
things you know I am NOT a developer but I can code a little bit but I couldn’t
kind of code and do the business side and do the marketing side of the
business and the operations I just you can’t do it everything even at the very
beginning so yeah I think you need an extra set of hands
it creates credibility it projects an image that you were able to convince one
other or two other people to take a huge risk in their lives and their careers
and join this company because they believe in it so there’s there’s an
intangible value to having co-founders next up by Christian, okay: love your
videos you’re welcome keep it up I do have questions I’m hoping this
finds your way we found it so okay so what is your best advice or
recommendations for founders who are working with an agency helping develop
an app and launch it to the market Continue to work with the agency as it
grows or have them transfer everything to start doing it in-house man if I
don’t I don’t do outsourcing agencies I’ll tell you why if you’re building an
app any software product website whatever you as a CEO you’ll come up
with with an idea of how this product should be and how this product shouldn’t
work and you’ll project that idea to the design agency you to the development
agency and they’ll create a prototype based on this the problem is you as a
CEO you’re not a product person you’re you
a businessperson and you have an idea of how the product should look and how the
product should work the agency will just follow those specifications but it is
very likely that this product is not what customers want even today like if I
were designing a new product and I have some experience in the whole
startup thing probably my first idea of a product would be wrong so point being
that product is gonna have to iterate it’s gonna have to change and if you
have to pay an agency for each one of those changes you’re gonna run out of
money really fast a lot of those changes require strong good strong arguments and
conversations about you know what needs to change and what’s needs to evolve in
the product you know a lot of our features I mean our most complex
features we’ve sat down you know five people in the company who are well
digging deep into the metrics involved in the business on a day-to-day they
have a stake in the game like they’re actually my co-founders or their
business shareholders and they really care about the product succeeding so it
you know there are no kind of like secret agendas here of you know the
agency wanting to bill you more or the end user wanting to take in a larger
project it’s you know it’s people that who’s first and foremost priority is
just growing this business and that’s something that you don’t get with an
agency so no I think that this that your team should be in-house as soon as
possible I’ve never paid an agency to build a first version of the app I think
it’s something that needs to scale inside the company that’s just the way I
think I’ve seen companies succeed and like outsourcing their their products I
just don’t think it’s it’s the norm all right thanks a lot for watching guys
we’re gonna do we’re gonna be doing questions on our weekly basis now and
we’re gonna add those questions at the end of each video so go ahead and submit
them in the comments on this video or any other video I’ll drop links to our
usual 3-month promo code right here and our of course our subscribe button so
we’ll see you next week you

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21 thoughts on “Startup Questions: Starting a Business, Startup KPIs and Product development

  1. Keep up the great work. Slidebeam is a great tool to have no matter it’ll its a business startup or just a presentation for a job project. It works great.

  2. What are the considerations on taking long iterations in our MVP rather than just taking risk by jumping to our end product? Would our time and resources spend on iterating MVP costs more than taking that calculated leap of faith towards the product?

  3. Man, i know its hard….
    This channel gets so little views and attention, and i see on your face that you know this, and im afraid if you stop filming.. 😔
    I cant thank you enough for your videos…thanks to you, i have a muchhh better chances of succeeding. One thing i need to ask you:Could i send you an idea that i think would be revolutionary💡🙂? (email) Keep up,so far, you are my favourite youtuber ☺️

  4. Man Caya, I like your work here. But the points about Solo Founder is a Boilerplate Text Book Answer. I am a solo founder myself and things are going really well. This whole crying over of emotional support and what not. Doesn't make sense to me. Yeah the work is initially too much, but arent you in this business to make it. No one, till date is really able to answer this question. There's a really cool podcast by Naval Ravikant(Angel List founder), who say "If you can build and you can sell, you are unbeatable."

    Inspite of these things, why not teach better skills to the founders.


  5. It actually made me really happy when you said you're a profitable company ☺️🥳🙌🏽! I'm tired of all these no-revenue-potential high-growth companies interfering with the efficient allocation of capital in the entrepreneurial ecosystem. We need more companies like Slidebean that can nail the fundamentals: can you sustain net profits?

    I usually think about how if your startup is worth $100 today and you own, say, 5% of it, you could cash out for $5. But if your startup makes $20 a year (=5x valuation) and you take 25% of the profit, that's $5 as well. But the important thing is that you make the $5 in income over and over and over again, whereas you can only cash out your 5% stake once, which is nice, but not as good. My view is that founders need a lot of equity to maintain reasonable control of their company, not as a potential payout mechanism.

    The best companies are the profitable ones that can provide a consistent return, not the chronic money-losers that leverage their investments to grow without a good end in sight. I personally think the trend in funding high-growth companies without a clear business model will fall out of favor in the coming years, as IPOs and the public markets facilitate large market-cap corrections e.g. what we have recently seen with companies like Uber, Snapchat, The We Company, and even our beloved Tesla. Profits matter. Maybe not at first, and maybe not for a while. But eventually, they do.

    So again, well done Slidebean, on becoming a profitable company! That's music to my ears 🎶🕺🏽. I wish your team the very best.

  6. If your primary metric is revenue, how much monthly recurring revenue would be ok for seeking a first seed round?

  7. The Startup Checklist is the entrepreneur's essential companion. While most entrepreneurship books focus on strategy, this invaluable guide provides the concrete steps that will get your new business off to a strong start.

  8. Hey Caya! Can you make a video on "stocks / options" topic from employee point of view. Let's say you join a startup, work with them a while and you are already in the middle of option vesting schedule — you already "own" 10k out of 20k.
    What is possible way to work with this options: sell, accumulate, exchange

  9. I’m currently a solo founder but I’m not gonna lie I do want a team around me but I’m finding it difficult to find them. I’ve already invested $40k of my own money but need a developer and marketer. I outsourced to develop the app but I never had anyone around me that could have been my co founders. So I don’t know if I should use angel list or LinkedIn to recruit people.

  10. Question: What is the rule-of-thumb traction (ARR) that a bootstrapped SAAS company needs to have a fighting chance of doing a seed round of USD 1 mill for 10% of the company? How important is profitability compared to ARR? Thanks for the great content!

  11. Could you answer this question? what if I wanna build a startup focused in Research and Development in order to make something that doesn't exist yet and look for investment in Silicon Valley, how can I get funding? PD: my prototype is done, it's about money to make it commercial

  12. Thanks a lot for the great job guys and really awesome videos… Please what's your advice on going about managing with co-founders who are really committed to the idea but some commitments like professional programs and schooling abroad have begun to take a large chunk of their time and can't really make so much time to work on the product as other members of the team and what of a case where equity hasn't been discussed yet about a month to launching the first product. Thanks a lot

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