The 20 Reasons Startups Fail
Build Your Startup Like a Serial Entrepreneur
Designing your business model
The Grow stage definitely requires running experiments with customers, but there is also planning work that needs to happen. What is the repeatable, scalable process for turning people into customers?
Looking at the first two questions in this stage focuses us on running tiny, fast marketing experiments. At a high level, the customer machine is that process that you are developing to actually tell the story of how someone finds you, discovers that you can solve their problem, and then becomes a customer.
This is the phase where it makes sense to build out a product roadmap and really figure out how you can go from the version that you were working on in the Test phase to a robust, scalable product. You will need to develop a go-to-market strategy, a sophisticated yet simple three-year plan for how you are going to grow your business in terms of customers, revenue, employees, product development, etc. The Grow stage is also the place where it makes the most sense to build out a financial model that again tells the story of how you are going to grow.
Finally, the Grow stage is the time to develop your pitch of how your business model works and the time to prepare to use that pitch to sell your business to potential customers, to potential employees, and to potential investors.