All Segments
How to Get Started, Doing Things that Don't Scale, and Press (How to Start a Startup 2014: 8)
37 segments available
How to Start a Startup is a series of video lectures, initially given at Stanford in Fall 2014. Lecture Transcript: http://www.tech.genius.com/William-sydney-walker-lecture-8-doing-things-that-dont-scale-pr-and-how-to-get-started-annotated Lecture 8 features 3 speakers: Stanley Tang, Founder of Doordash, covers How to Get Started. Walker Williams, Founder of Teespring, covers Doing things that Don't Scale. Justin Kan, Founder of TwitchTV and Partner at Y Combinator, covers Press. See the slides and readings at http://www.startupclass.samaltman.com/courses/lec09 Discuss this lecture: http://www.startupclass.co/courses/how-to-start-a-startup/lectures/64037
Segments Timeline
From Student to Startup Founder
Stanley Tang, founder of DoorDash, shares his journey from being a Stanford student to launching a successful startup. He reflects on the absurdity of balancing schoolwork, taxes, and a $15 million investment, illustrating the chaotic yet exciting beginnings of his entrepreneurial journey.
"Thanks for having me, Sam. Um, I'm Stanley. I'm the founder of Door Dash. And it's it's really amazing to be here because it wasn't actually that long ago where I sat in in your seats. Um, I was class..."
Identifying a Market Need
In a pivotal moment at a macaroon store, Stanley Tang learns about the delivery challenges faced by small business owners. This encounter sparks the idea for DoorDash as he and his team interview numerous business owners to validate the demand for a delivery solution.
"ridiculous our our journey has been. you know, starting at Stanford, doing this while I was at Stanford and then transitioning this into an actual startup. And I want to share that story with you toda..."
Testing the Delivery Hypothesis
To test their delivery idea, Stanley and his team create a simple landing page for restaurant delivery. They aim to gauge interest by collecting phone orders, leading to their first real delivery experience and confirming the demand for their service.
"us you know we don't have you know delivery infrastructure um it's such a huge pain for us there's there's not any good solutions out there and which which led us to wonder you know delivery is such a..."
The Power of Launching Fast
Stanley emphasizes the importance of launching quickly and testing ideas in the real world. He recounts how their simple landing page attracted orders, demonstrating that speed and adaptability are crucial in the early stages of a startup.
"this delivery idea was something worth pursuing. So we put it up there. We weren't really expecting anything and we were we're driving back home and all of a sudden we got a got a phone call. You know..."
Doing Things That Don't Scale
Stanley discusses the mantra of 'doing things that don't scale' at Y Combinator. He shares how he and his co-founders took on multiple roles, from delivery drivers to customer support, to learn the business inside out and build a strong foundation for DoorDash.
"something um when people are willing like we knew we found this need people wanted when people are willing to put up with all this so I think another key point um to remember is that we launched this ..."
Learning from Customer Interactions
Through hands-on experience, Stanley highlights the value of direct customer interactions. He explains how personalizing communication with customers helped DoorDash refine its service and understand user needs better.
"because we were under suspicions for moneyaundering. Um I mean, think about it. We're getting small chunks of like $15$20 orders coming in at a rapid pace. Um it was Yeah. And luckily my co-founder To..."
The Motivation to Scale
Stanley shares a humorous anecdote about prioritizing deliveries over personal desires, illustrating the drive to scale DoorDash. He emphasizes that scaling is essential for future growth and the ability to enjoy personal rewards.
"our customers really really appreciated that. Um and and I remember um one time this was during YC. We were at a we just came out of a meeting with our one of our restaurant partners and you know we w..."
Key Takeaways for Startups
Stanley summarizes three critical lessons from his DoorDash experience: test your hypotheses, launch quickly, and embrace the non-scalable tasks that provide competitive advantages in the early stages of a startup.
"um product market fit. So just to summarize, so there's three things I would say that I learned from from doing door dashes. First, test your hypothesis. You want to treat your startup ideas like expe..."
The Role of Word of Mouth
In response to a question about customer acquisition, Stanley explains how DoorDash initially relied on word of mouth for growth. He emphasizes the importance of a strong product-market fit that encourages organic promotion.
"Thanks Sure. How did your first customers hear about? Yeah. So question question was how did our first customer hear about us? Um our very first one I have no idea. Um we we just launched political de..."
The Impact of Mobile Technology
Reflecting on the evolution of DoorDash, Stanley discusses how mobile technology enabled their delivery model. He highlights the shift towards on-demand services and the importance of adapting to technological advancements in the startup landscape.
"willing to put up with all this um, you know, terrible user experience, terrible design and stuff like that. when you started um it seemed so obvious to you wondering why has no one done this. What's ..."
The Unexpected Journey of Entrepreneurship
Stanley concludes by sharing how the delivery concept emerged from an experiment rather than a predetermined plan. He emphasizes the importance of being open to opportunities and adapting to the evolving needs of the market.
"Yeah. Um did you know we were going to be a startup or we just making some money at first? Yeah, I mean at the time we just wanted we're all really passionate about building technology for small busin..."
Navigating Competition in Delivery
Tang addresses how DoorDash differentiated itself in a competitive market filled with established players like Postmates and Seamless. He emphasizes that consumer demand was never the issue and that focusing on serving that demand was crucial for their early success. This segment highlights the importance of understanding market needs.
"space filled with Postmates and Seamless and other companies? Yeah. Um, yeah, the question was how does Door Dash stand out among a very competitive space? I mean I mean in the beginning I mean for us..."
Incorporating After Launch
In this segment, Tang discusses the timeline of incorporating DoorDash into a formal company after their initial launch. He shares insights about their experience with Y Combinator and how the startup journey evolved from a simple idea to a structured business. This highlights the importance of formalizing a startup's operations.
"[Music] Um yeah you what do you plan to do next or where do you plan to go with this besides like food delivery? Yeah I mean the question was where do we plan to go beyond food delivery? I mean for us..."
Introduction to Walker Williams
Walker Williams, CEO of Teespring, introduces himself and his company, which allows entrepreneurs to launch products without risk. He sets the stage for discussing the advantages of startups being able to do things that don't scale, hinting at the unique challenges and opportunities faced by new businesses.
"Okay, next is uh Walker Williams from Teespring. Uh, Teespring went through YC year and a half ago, something like that. Yeah. Uh, I almost rejected them. Um, sounds like a dumb idea, but uh, now they..."
Embracing Unsustainable Growth Strategies
Walker Williams defines 'doing things that don't scale' as essential yet unsustainable growth strategies for startups. He outlines three key areas: finding first users, turning them into champions, and achieving product-market fit. This segment emphasizes the necessity of unconventional approaches in the early stages of a startup.
"luckily I not going to talk also about doing things that don't scale. All right, thank you guys for having me. Uh, my name is Walker. I'm the CEO and founder of Teespring. Uh, for those of you guys wh..."
The Challenge of User Acquisition
Williams shares insights on the difficulty of acquiring the first users for a startup. He stresses that there is no one-size-fits-all solution and that founders must invest personal time and effort to bring in initial users. This segment highlights the importance of persistence and creativity in user acquisition strategies.
"places I want to focus on today. Uh the first one is finding your first users. The second one is turning those users into champions. And the third one is finding your product and market fit. So findin..."
Building Relationships with Early Users
In this segment, Williams discusses the importance of nurturing relationships with early users, who are often the hardest to acquire. He compares the process to pushing a boulder uphill, emphasizing that founders must be hands-on and dedicated to understanding their users' needs. This highlights the foundational role of customer relationships in startup growth.
"get. And let me tell you the story of a ridiculously unsustainable business. So this is Teespring in 2012. Uh when we first got when we first launched the the business couldn't have looked worse. It t..."
Transforming Users into Champions
Williams explains how to turn users into champions who advocate for your product. He emphasizes the importance of providing exceptional experiences and engaging directly with users to build loyalty. This segment underscores the value of customer advocacy in driving sustainable growth for startups.
"responsibility as a founder to do whatever it takes to bring in your first users. And you know it's going to be different for every company. The common thread that I hear is founders need to spend per..."
The Importance of Customer Feedback
Walker Williams stresses the necessity of talking to users to gather feedback and improve the product. He shares his personal commitment to customer service and the insights gained from direct interactions. This segment highlights how understanding user experiences can shape product development and enhance customer satisfaction.
"Maybe Stanley is one of those unicorns. That was a pretty incredible story. But for for most of us, uh those first users are going to take a lot of handholding, a lot of personal love, and that's okay..."
Proactive Customer Engagement
In this segment, Williams discusses strategies for proactively engaging with current and churned customers. He emphasizes the importance of maintaining good relationships and learning from feedback to prevent churn. This highlights the ongoing responsibility of startups to care for their users and adapt based on their experiences.
"paid. The second aspect is what happens when you get those users. How do you turn those users into champions? And a champion is a user who talks about and advocates for your product. And I'm a firm be..."
Proactive Customer Engagement
Williams highlights the necessity of proactively reaching out to both current and former customers. He explains how this outreach can prevent churn and improve customer satisfaction. By understanding why customers leave, startups can learn valuable lessons to enhance their offerings and maintain a loyal user base.
"second step is to proactively reach out to current and churned customers and and churned customers or customers who have left. And this is one that that often falls by the wayside in the sort of the p..."
Navigating Product and Market Fit
In this segment, Williams discusses the concept of product-market fit and the importance of rapid iteration in the early stages of a startup. He advises against focusing solely on scalability and clean code, stressing the need to prioritize speed and adaptability to meet market demands effectively.
"make it right. To always go the extra mile and make that customer happy. One detractor who's had a terrible experience on your platform is enough to reverse the progress of 10 champions. It's all it t..."
Embracing the Chaos of Startups
Williams shares insights on the chaotic nature of startups, emphasizing that challenges and technical debt are part of the journey. He encourages entrepreneurs to focus on speed and adaptability rather than perfection, illustrating how overcoming obstacles can lead to significant growth and product improvement.
"like your service, but you're missing these fundamental things, so we can't we're not going to use it." Uh, and we looked at sort of what it would take to build out those features. And we weren't sure..."
Doing Things That Don't Scale
Williams stresses the importance of engaging in activities that may not scale as a startup grows. He argues that maintaining close relationships with users and prioritizing their feedback is a competitive advantage that should not be relinquished lightly, as it fosters loyalty and drives growth.
"so so important early. So, the the lesson that I've been learning lately is uh you know, you want to do these things that don't scale as long as possible. There's not some magical moment. It's not the..."
Identifying Viable Market Opportunities
In response to a question about entering a competitive market, Williams explains how personal pain points can lead to viable business ideas. He shares his experience with Teespring, highlighting the importance of recognizing market needs and adapting to customer demands to build a successful startup.
"you. Sure. Go ahead. Yeah. Um the t-shirt printing business uh it seems like it has um a lot of common. So what made you uh what convinced you um to think this is a viable market uh even when doing we..."
Understanding Press: The Myths and Realities
In this segment, Justin Kan discusses the common misconceptions about press coverage in entrepreneurship. He emphasizes that getting press is not a magical process and highlights the importance of having clear goals before seeking media attention. Kan shares personal experiences and stresses that aimless press coverage won't benefit a startup without a strategic approach.
"talk about something very specific uh that people always have questions with, which is press and like how do you get it? How does it work? Uh it's something, this is kind of like an a bridged version ..."
Setting Clear Goals for Press Coverage
Justin Kan elaborates on the necessity of defining specific goals when seeking press coverage. He provides examples from his experiences with Social Cam, Exec, and Twitch, illustrating how targeted press strategies can effectively reach the desired audience. Kan explains that understanding your audience is crucial for maximizing the impact of media exposure.
"time. Um so, you know, there's many different goals. Uh, one example is, you know, you might want to with with Social Cam, which was a spin-off of Justin TV. Uh, it was like an app that was kind of li..."
Types of Stories That Attract Press
In this segment, Kan outlines various types of stories that can capture media attention, including product launches, fundraising announcements, and significant milestones. He discusses how these stories can be leveraged to gain press coverage and shares insights on what journalists typically look for in a startup story.
"industry whether they were developers or advertisers to think about us as like an important place where like influencers were. So we really targeted, you know, industry trades and game dev blogs and p..."
Crafting Compelling Stories for Media
Justin Kan emphasizes the importance of crafting compelling narratives that resonate with journalists and their audiences. He discusses the need for startups to present their stories in an engaging manner and to consider what makes their newsworthy events unique or interesting to the press.
"story of your startup. Um usually don't have to worry about that in the beginning. uh what I like to call stunts, which are like um I don't know if you guys remember, but a couple years ago, this YC c..."
The Mechanics of Getting Press Coverage
Kan provides a tactical approach to securing press coverage, likening the process to a sales funnel. He outlines steps such as identifying a story, getting introductions to reporters, and preparing for meetings. This segment offers practical advice for entrepreneurs on how to effectively pitch their stories to the media.
"stories. One of the things that um people usually don't think about is that you know you really have to think about like everything when you start a startup you think that everything you're doing is i..."
Building Relationships with Journalists
In this segment, Kan discusses the importance of building relationships with journalists to enhance the chances of getting press coverage. He shares strategies for making introductions and emphasizes the value of personal connections in the media landscape, encouraging entrepreneurs to leverage their networks.
"that was like just written about in the news. Um, so one of the like actual mechanics of getting a story, um, this is like pretty tactical. So what if you want to get your news in you know the the pre..."
Preparing and Pitching Your Story
Justin Kan explains how to prepare and pitch a story effectively to journalists. He advises entrepreneurs to outline their news in bullet points and practice their pitch to ensure clarity and engagement during conversations with reporters. This segment highlights the importance of preparation in securing media coverage.
"so like by the transitive property, you're basically going to they're going to think you're, you know, probably interesting. Um, so you get like an email that's like, oh, you know, from this guy that ..."
The Role of PR Firms in Startups
Kan addresses the role of PR firms in the startup ecosystem, suggesting that founders should first attempt to manage their own press efforts before hiring external help. He emphasizes the value of understanding the press landscape personally to better leverage PR resources when the time is right.
"for them to like forget about it ignore it. Um, so you want to like actually try to get in contact with them, set up a meeting. Okay. So then the next step is actually pitch them. Um what I usually do..."
The Role of PR Firms
Stanley Tang discusses the pros and cons of hiring PR firms for startups. He advises founders to first learn the ropes of public relations themselves before outsourcing. While PR firms can provide valuable contacts, they cannot convey the unique story of your startup. Tang warns that early-stage startups should be cautious about spending on PR, as it can be a significant expense without guaranteed results.
"I bold it, right? Um and then that's it. Then hopefully the the day comes, you press submit on their release to the app store and at the same time they release their article on TechCrunch and you are ..."
Press as a Non-Scalable Strategy
In this segment, Tang explains that while getting press can help startups gain initial traction, it is not a scalable user acquisition strategy. He highlights the importance of maintaining a regular schedule of news releases to keep the company in the public eye, but cautions that media attention can wane quickly. Founders should focus on building relationships with reporters to ensure ongoing coverage.
"early days. Um, you know, getting press is is a lot of work. Uh, so you should really make sure it's worth it. Um, you know, like I said, it really getting press doesn't mean it feels like it's like a..."
Building Relationships with Reporters
Stanley Tang emphasizes the importance of nurturing relationships with reporters for long-term success in gaining press coverage. He suggests that helping fellow entrepreneurs can lead to reciprocal support in the future. Tang also shares resources for learning more about effective press strategies, including insights from former tech reporters and marketers.
"really a relationships business. So once you someone writes about you, you should keep going back to them for for more um for writing about you know to write about you in the future. It's kind of like..."
When to Start Worrying About Press
In this concluding segment, Tang answers a question about the right time for startups to focus on press coverage. He advises that early on, startups should aim for at least one tech story to gain initial users. He encourages founders not to obsess over extensive media coverage at the beginning, but rather to use press strategically to build awareness and attract their first customers.
"That's basically it. One question. Just one. Two. Two qu Okay. Two questions or zero questions. So, when is the right time to start worrying about press altogether? Uh when is the right time to start ..."