Ep 28: From Startup to Scaleup: How to Make Revenue Flow Fast

Timestamps:

01:06  The People Factor: Finding the Right Talent

01:50 Identifying and Serving the Right Customers

12:31 Enhancing Collaboration for Better Execution

18:31 Traits of Successful Employees in Scale-Up Environments

20:59 Product Market Fit and Customer Alignment

About Brett Stephenson: 

In the high-octane world of startups and scale-ups, revenue growth is the ultimate goal, but achieving it is far from straightforward. As the CRO at Payapps, Brett Stephenson has navigated these waters successfully, leading his team to a successful acquisition by Autodesk. Today, we delve into Brett's experiences, exploring the challenges faced by scale-up organisations and the solutions that can pave the way for rapid revenue flow.

The Journey from Startup to Scale-Up

Brett Stephenson's journey with Payapps is a quintessential example of a successful scale-up story. Under his leadership, Payapps grew rapidly, earning a spot on the Deloitte Fast 50 list and ultimately being acquired by industry giant Autodesk. This kind of success is not just about having a great product or a robust market strategy; it's about navigating a myriad of challenges that come with scaling up. Brett identifies three critical challenges: people, customers, and collaboration.

The People Factor: Finding the Right Talent

One of the biggest hurdles in scaling up is ensuring you have the right people in place. Brett emphasises the importance of hiring individuals who thrive in a startup environment. These are people who are comfortable with ambiguity, can wear multiple hats, and are not afraid to roll up their sleeves and get things done. They are markedly different.

For scale-ups, it's essential to hire individuals who are not only talented but also have the tenacity and willingness to "roll up their sleeves" and get things done. Brett emphasises that while it sounds simple, many people struggle to adapt to this kind of environment. He suggests looking for candidates who ask insightful questions during interviews, demonstrating their curiosity and proactive nature. These individuals are more likely to thrive in an environment where they must figure out how to achieve goals with less direction and more autonomy.from those who excel in larger, more structured organisations.

Identifying and Serving the Right Customers

Another significant challenge is ensuring you target and serve the right customers. Brett notes that in the early stages, startups often cast a wide net, trying to attract as many customers as possible. However, as the company grows, it's essential to focus on those customers who truly align with your product and can help drive sustainable growth.

Brett advises companies to be willing to "fire" customers who drain resources without providing sufficient return on investment. This tough decision can help refocus efforts on customers who value your product and are willing to invest in its success. He stresses the importance of asking potential customers probing questions to determine if they are the right fit for your product. This approach not only improves customer satisfaction but also ensures that your resources are allocated efficiently, driving consistent revenue growth.

Enhancing Collaboration for Better Execution

The major challenge Brett discusses is the lack of collaboration within teams, particularly between sales and product, and sales and marketing. He explains that a common issue in many organisations is the disconnect between these departments, which can hinder growth and execution.

For sales and product teams, Brett suggests a novel approach: allocating a portion of the product development budget to sales. This allows sales teams to have a direct say in what features or products are developed, fostering better collaboration and ensuring that the product development aligns closely with customer needs. This strategy also holds sales accountable for their requests, ensuring they are well thought out and genuinely beneficial.

When it comes to sales and marketing, Brett emphasises the importance of regular communication. He recommends that the head of marketing join sales meetings weekly to provide updates on upcoming initiatives and ensure both teams are aligned. This practice helps prevent miscommunication and ensures that both departments work towards the common goal of revenue generation. Additionally, it's crucial to coordinate outreach efforts to avoid overwhelming customers with redundant communication.

Traits of Successful Employees in Scale-Up Environments

Brett highlights several traits that are particularly valuable in scale-up environments. Curiosity, proactivity, and the ability to work autonomously are key. He points out that successful employees in these settings are those who not only adapt to change but also thrive in it. They ask questions that show they are thinking about the long-term goals of the company and how they can contribute to achieving them.

Moreover, Brett advises giving new hires responsibility early on to see how they handle it. This approach can quickly reveal whether they are the right fit for the company. Those who excel will demonstrate their ability to take initiative and drive projects forward, which is crucial in a fast-paced environment.

Product Market Fit and Customer Alignment

Achieving product-market fit is a critical component of business growth. Brett discusses how aligning your product with the right customers can lead to greater success. He notes that while it might be tempting to customise your product for every customer request, this can dilute your core offering and confuse your market positioning.

Instead, he recommends focusing on the customers who genuinely benefit from your product and are willing to advocate for it. This focus not only helps in refining your product but also in building a loyal customer base that can drive referrals and organic growth. Brett’s insights underscore the importance of strategic customer selection and maintaining a clear vision for your product.

Conclusion: The Road to Sustainable Growth

Brett Stephenson's insights provide a roadmap for navigating the complexities of scaling up. By focusing on hiring the right people, targeting the right customers, fostering collaboration, and executing effectively, scale-up organisations can achieve sustainable growth. As Payapps' journey demonstrates, these principles can lead to remarkable success, transforming a startup into a market leader.

In the fast-paced world of startups, the ability to adapt, collaborate, and execute is paramount. By embracing these strategies, scale-up organisations can not only achieve rapid revenue growth but also build a foundation for long-term success.

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