5 Wild Ways To Pre-Sell Your Product
Fund your product before you build it!
Read More
You’ve read The Mom Test!
You’re hunting for Authentic Demand!
You’re looking for those first paying users!
But how do you get people to pay you money when you need money to build the thing that people will pay you for?
A chicken and egg problem…THAT WE’RE GOING TO DEBUNK TODAY!
Here are 5 ways I’ve seen real startups prove demand and pre-sell their product before it existed!
Are these the exact strategies you should use?
Probably not.
Every business is different.
But hopefully it will trigger an idea, inspire you, or give you a starting place for your own version of a pre-sell!
We used this playbook in our Venture Studio when launching The Perlant and Intown Golf Club.
We sold club memberships before the club existed.
Explain the vision. Get people excited. Offer a founding membership for $1000.
When you have 100 future members, who want it enough to put money down, several amazing things happen:
you know you’re onto something real
$100,000 of working capital
100 evangelists (aka unpaid sales people) who recruit their friends
strong data points to share with potential investors
What’s the “selling memberships” version of what you’re working on??
No tech? No problem!
Deliver the solution manually but make it much, much easier than what they are doing now.
(And automate the tech over time once you have paying customers and you know exactly what will solve their problem!)
I’ve seen this work for real companies like:
a logistics marketplace — got to 6 figures of revenue with a spreadsheet backend
remote monitoring services — leveraged offshore resources while developing scalable tech
task management tool — software frontend with humans behind the scenes
Customers are happy to pay because their experience is so much better. They don’t care how it happens!
What is the 10x better experience you are selling? What can you deliver now, knowing that you’ll improve and automate over time?
Thanks for reading The O’Daily by Kathryn O’Day! Subscribe for weekly startup advice.
I have always loved this example from The Rebel Business School, who I also mention here.
They don’t build the content for any of their entrepreneurship education courses until they have sold the course!
They use a syllabus overview in the sales meeting. If they win the deal (they sell to economic development organizations), then they hustle to build out the specific course materials.
You can also do this for:
New modules on your platform — get customer contracts first
Next locations — do sales outreach or inbound sign ups to see where demand is
Your whole product — they’re called design partners! And it’s more possible to code a product in a few days than ever before!
P.S. Large companies do this too. They sell dreams, I mean, showcase aspirational customer use cases at their premier events, then spend the rest of the year actually building them!
What do you actually need to sell? Can it be a mock up instead of a full product? What’s the minimum viable version (that you can later deliver on) to get a customer onboard?
Marketplace Building 101.
I love love love the Lenny’s Newsletter series on marketplaces! It tells the real stories of how great marketplaces got started.
Spoiler: it’s messy.
The company’s value prop is something like:
“We have many Things (babysitters, errand runners, hotel rooms)!”
Then someone buys a Thing from the marketplace, except it was a placeholder/test/fake-it-til-you-make-it listing.
They scramble behind the scenes to locate and deliver the Thing quickly so it feels easy and seamless.
And this is how marketplaces get started!
Lots of faking supply or demand until awareness grows and you don’t need to fake it anymore!
People also do this with consumer products. Offer a pre-order option or explain that it’s a 2 week turnaround.
Do you think Etsy creators are holding warehouses of inventory (beyond their guest room and garage 😆)? No way!
What can you sell now and then procure after? Especially great for services or physical products!
I love consulting and community-building as a way to get customers! This is combo of both.
Your insights and expertise are the hook. Your research becomes a coveted and helpful data set.
You can “pre-sell” things like:
Paid newsletter
1:1 consultation
Small group events
Workshops (in person or online)
You build trust as the expert, deliver value to your target customers, while also generating revenue and getting insight for a tech product!
Can you monetize your expertise now so that it funds (and shapes) your long term tech vision?
People can build tech tools faster than ever. Like, hours instead of weeks and months.
Are these pre-sell strategies old fashioned now?? Why not just build in 30 seconds and then regular-sell?!?
The best founders I know are using AI and these strategies. They can iterate faster and better with AI. They can run even MORE experiments, MORE quickly.
You still have to use your own judgement and brain. Yep. You may also have to talk to real humans to learn from them and sell things. I know, terrible really. 😉 Exclusive AI-Agent-to-AI-Agent communication isn’t here…yet!
When everyone can build more products faster than ever before, you will need to separate yourself from the noise! Selling before you build will be a differentiator. Your solution will be better; you will be closer to your customers.
If you can build an amazing product super fast that people will pay for right away, amazing! Keep going! It’s very hard but if you’ve done it, congrats (and tell me about your product)!
Have you pre-sold your product before? What worked for you? Any other pre-selling lessons — good or bad — to share??
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9+ Events You Don't Want To Miss This Spring 2026
Read MoreWas one of these a New Year’s Resolution?
Do more networking
Get better at sales
Start running again
Raise money for your startup
Build relationships with investors
IT’S YOUR LUCKY YEAR!!
These upcoming events will accomplish some or all of your goals!
What else should we know about?? Add to the comments any events you’re hosting or attending!
📅 Wed, Feb 4, 8:30-10a
📍Atlanta Tech Village - Buckhead
Join other healthcare founders, investors, and leaders for networking and alll the startup lessons and advice from Chris Spears, founder and CEO of OrderlyMeds.
📅 Tue, Feb 25, 4–6p
📍 Atlanta Tech Village — Buckhead
Join Atlanta Tech Village’s Women + Tech Program and the Women’s Entrepreneurship Initiative for a panel of women investors and operators (including yours truly 🙋♀️) sharing real insights on accessing capital, scaling responsibly, and navigating growth.
It’s an honor to be part of this all-star lineup:
Jennifer Bonnett – VP of Technology & Entrepreneurship, Invest Atlanta
Jewel Burks Solomon – Managing Partner, Collab Capital
Stefanie Diaz – Principal of Innovation & Venture Strategy, Catalyst by Wellstar
Alaina Percival – Venture Partner, Valor Ventures (Founder, Women Who Code)
Register here.
📅 Fri, Feb 20 - Sun, Feb 22
📍 South Downtown
Is this the coolest weekend ever? Urban innovation + World Cup + Atlanta’s Downtown. Let’s GOOOOOO! (Read more here.)
A 48 hour civic build moment for students, entrepreneurs, technologists, creatives, civic leaders, and neighbors to collaborate on ideas and innovations around:
Public Safety & Walkability
Cultural Preservation & Storytelling
Economic Opportunity & Business Vitality
Sustainability & Public Space Activation
Civic Engagement & Advocacy
You will directly impact what happens in Downtown Atlanta for the World Cup and generations to come!
📅 Fri, Mar 6, 11:30a-12:15p
📍 Emory University
This is one of many excellent sessions during the Executive Women of Goizueta Annual Leadership Conference including keynotes from Paige Alexander, CEO of The Carter Center, and Sara Wechter, Chief Human Resources Officer at Citi.
I’ll be on this panel alongside:
Chi Chi Okezie, Owner/Producer of SIMPLEnetworking, LLC
Clair Flores, CEO of OODAZU
Meredith Swartz, Chief Planning Officer of Mercy Care
We’ll be sharing our professional stories plus advice for folks navigating pivots, promotions, or visibility moves.
You KNOW I’ll be talking about:
how to establish credibility with anyone (even if you feel young or inexperienced!)
And whatever else these smart women want to dig in on!
Thanks for reading The O’Daily by Kathryn O’Day! Subscribe for weekly startup advice.
📅 Wed, Mar 11
📺 GPB Live Stream
📍 Ferst Theater, Georgia Tech Campus
One of my favorite events of the year — this is the ultimate Shark Tank-style event with $30,000 of prize money going to the top Georgia Tech entrepreneurs!
See it live on campus or watch from home on GPB streaming.
I was a judge last year and didn’t swear on live TV so I got invited back! 😅 Let’s see if I can keep a lock on the f-bombs for another year…while also (and more importantly) getting to know the next generation’s top founders!
These “kids” are SO impressive. Prepare to have your mind blown! 🤯🤯🤯
📅 Fri, Mar 13, 6:45a
📍Tech Square - Biltmore Ballrooms
Join us for a leisurely 3.5-4 mile jog around Peidmont Park with other founders, investors, and startup folks.
Huge thank you to Katie Begando, Denis Cranstoun, and Julie Pierre for hosting. 🙏
Very friendly, lots of selfie stops and shortcuts, with coffee (and water 🥵) at the end.
Keep up your running resolution alive (and it counts as “work”)!
📅 1st & 3rd Fridays, 1p
📍Atlanta Tech Village - Buckhead
📅 1st Tuesday, 1:30p
📍Atlanta Tech Village - Sylvan
Led by the brilliant Jacey Cadet, get *FREE* help on your startup pitch!
Register for the session that works best for you here.
📅 Thu, Feb 12, 12p
📅 Thu, Mar 12, 12p
📍Virtual
Join me and fellow Atlanta Ventures partner, A.T. Gimbel, for an informal Q&A sesh.
Common topics include fundraising, product development, how to get early customers, what we look for when investing, and more!
We do these every month. Check out future dates on the Atlanta Ventures events page.
📅 Mon, May 18 - Tue, May 19
📍Charlotte, NC
Snag your tickets now for this 2-day capital summit in one of my favorite Southeastern startup cities, put on by gWen and Innovate Charlotte, hosted in Bank of America Stadium!
📅 June
📍Atlanta
Dates are not yet released but if you’re thinking about coming to Atlanta in June, YOU SHOULD!
This week is a tech party with great events across tech hubs and tons of engineering talent converging on Atlanta.
The last two years I’ve talked about building a billion dollar company at the Atlanta Tech Village so I’m ready with fresh jokes and lots of advice. 😉
I can never capture all the awesomeness. What are you looking forward to? What did I miss??
Here are some of my favorite event calendars:
And even more — a list of my favorite resources, groups, and tactics for getting a pulse on Atlanta and finding other tech folks.
Comment below with events you are hosting or other events you’re attending that we should know about! 👇👇👇
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Top 4 strategies (including fave tools) from a startup CRO and AI expert.
Read MoreIf I had a nickel for every time someone asked me…
How are other startups using AI?
What’s the best way to get started with AI?
How can I use AI to sell more?
…I would be a billion dollar company! (#momjoke)
Last week, I had the pleasure of sitting down with the kind and brilliant Beata Rouleau, fractional CRO and startup AI expert, who gets rave reviews from founders I trust, to get her take on these burning questions.
She’s on the front lines, improving Go-To-Market processes for startups — using AI of course.
Now you get her best advice right here on the O’Daily!
For more of Beata’s helpful insights (and access to her workshops), follow her on LinkedIn and subscribe on Substack.
Do you have your notepad AI notetaker ready?
Here’s Beata’s #1 piece of advice, available for use in the next 5 minutes.
Use the CRIT framework: a prompting method to transform AI from a glorified search engine into a strategic thought partner.
This simple framework is magic…
Context
Role
Interview (This is the secret sauce)
Task
It’s easy, repeatable, vendor-agnostic, and works for almost any AI need you can think of!
Give the background information.
Examples: include your situation, goals, challenges, audience, and constraints. The more context you give the better the output!
Tell AI who to be. Assigning a specific expertise focuses the response and shapes the tone.
Examples: strategic advisor, copywriter, investor, researcher, brainstorm partner
Before AI produces anything, have it ask you clarifying questions - one at a time. This is what separates CRIT from other frameworks.
Here’s the prompt: “Interview me asking me 1 question at a time, up to 5 questions, to gain additional context.”
^^ this is key!! Gives you and AI more clarity by forcing you to slow down and think. AI learns what actually matters; you surface insights you didn’t know you needed to articulate.
Explain the output you are looking for. Be specific about format, length, and what success looks like.
Examples: Come up with 5 non-obvious strategies to solve this problem, draft 3 email templates, create a 10 slide pitch deck
Boom! You are the thought leader, AI is a thought partner.
No more wondering where to start or asking why your AI doesn’t “get” you.
Share this prompt with your team, your friends, even (gasp) your parents!
You’re gonna love this.
Beata recommends Glyphic as your AI sales copilot.
A Gong-disruptor at a fraction of the price. Yes, please!
(Not there yet? Otter.ai is great for audio recording and transcripts. Fathom has good video recording if you are more presentation and screenshare heavy.)
Once you have call recording data, you can start doing cool things with AI agents.
Don’t be scared of AI agents!
As Beata explains, agents are just “triggers and specific asks.” When X happens, do Y. That’s it. Totally manageable! 😅
Glyphic lets you build these directly in the platform.
Follow-up Email Generator: based on specifics in the call transcript, auto-generate a customized follow up email that references what was actually discussed. No more generic templates!
Competitor Analysis: run a monthly analysis of sales calls to understand what prospects are saying about competitors (good and bad). Use that insight to fine tune your objection handling or run a targeted outreach campaign to users of that product.
Trending Topics: similar to your competitive analysis, what are customers talking about or asking questions on? Pull out the trending topics to plan your next marketing campaign, LinkedIn posts, or webinar.
Deal Stage Patterns: look at transcripts of closed won deals, closed lost deals, and calls that moved forward but stalled. What patterns emerge? For example, if most closed lost deals are not the right fit, can you use an AI agent to better qualify leads before a demo?
Call Scorecards: using BANT, MEDDIC, or other sales framework, you can assess a sales rep’s calls and overall sales process. Any common misses? Use AI to create training materials around that topic. 😉
As Beata wisely points out, at a startup, every lead matters.
Once you have them on the phone, er, Zoom — make the most of it!
Not an AI recommendation per say but since I get asked about CRMs at least 5x/wk, I know it’s top of mind!
Beata says Hubspot continues to be the go-to startup CRM and is her recommendation for most startups.
(Kathryn’s note: can confirm - most of our portfolio companies use Hubspot!)
It is simple to set up with good out-of-the-box functionality but robust enough to have many integrations (including Glyphic) and customizations.
Salesforce — while obviously still the greatest company on earth since I worked there post-Pardot acquisition — is too complex and expensive for what most startups need unless they are enterprise or highly niche.
Most founders start with a spreadsheet (love this, stay scrappy).
Then they agonize over which CRM to use, often starting with a smaller, lower-cost option, which — if things go well — they’ll outgrow in a year.
Then they painfully switch to Hubspot and berate themselves for not starting with Hubspot in the first place.
To which I say, you had very few customers before and even less money so it was probably a good decision. Growing pains are high class problems!
#PROTIP: If you’re thinking about Hubspot, make sure you get yerself a deal!!
Hubspot offers major discounts — to the tune of 90% — through partners like startup hubs (ahem, Atlanta Tech Village), accelerators, VC firms, or sometimes credit cards like Ramp or Brex.
It will be very inexpensive to start and then get annoyingly expensive when you’re further along.
Beata has been hearing good things about GoHighLevel but needs to dig in further. She can neither confirm nor deny if it’s the next Hubspot or another low cost CRM that you’ll painfully outgrow in a year. Stay tuned! 😉
AI not doing what you want?
Before you swear off all technology and rage post about the overhyped AI bubble, Beata recommends:
Take a pause.
Reset.
SLOW DOWN.
Mostly likely you were going too fast and didn’t give enough information.
Whatever do you mean, Kathryn asks, as her 1 line prompt didn’t result in a perfect email draft?? 😜
Here’s the secret:
Give clear instructions.
Getting AI to work for you requires the same skills that make a great team manager:
Can you explain what you actually want?
How specific are you with deliverables?
Did you provide enough context?
Back in the day (when I was walking to school in the snow uphill both ways), great managers managed people.
Today, your team probably has more AI agents than humans.
Not only are they more cost-effective and don’t expect donuts on their birthday, but they don’t care about your demanding tone, snarky comments, and unreasonable asks like a 20 page report in 30 seconds!
Regardless of whether you’re managing people or AI agents, clear communication and more effort on the front end will save you time and frustration overall.
Is AI the answer to all of our startup problems? Of course not!
As Beata reminds us — we still need to work the muscle of our brain!
AI + human creativity is where the magic happens.
AI is your thought partner, assistant, researcher, sounding board, and force multiplier.
YOU are still the thought leader!
How is your startup using AI? What’s your best AI tip? Favorite tool?
P.S. Want more Beata? (I know I do!) Go say hi on LinkedIn and subscribe to her Substack!
Simple, straightforward ways to build alignment
Read MoreNew year, new ideas!
…And new pushback from the team. Whomp whomp 🙃
It’s normal and healthy to have internal debate at companies.
You want to have at least a few skeptics on the team so help you think through downsides and clarify your approach.
But when it’s important to get alignment around a new initiative, what can you do?
Here are 2 very simple but effective ways to get your team, board, family, anyone on board with something that feels like a (scary 😱) change!
I LOVE this strategy and do it all the time in my own life, personally and professionally.
Almost any new idea or project, I consider an experiment.
Let’s try it for a predetermined time frame and then reevaluate.
Takes the pressure off everyone involved!
Keeps the door open for change or feedback
Allows you to get started without having to consider every possible repercussion
Breaks it into a manageable chunk of time (e.g. it’s not forever, just for a month)
Makes it easier for people to come along on the journey
(Literally for everything but here’s some examples…)
Trying a new wellness habit
Seeing if an event has good marketing ROI
Implementing a new metrics tracking system
Working with a consultant or coach
Iterating on your family’s nighttime routine
Launching a new product offering
Going after a stretch goal like speaking at a large event
All of these examples have money, time, or ego at stake. Lessen the risk by making it an experiment!
#PROTIP
Schedule time at the outset for the evaluation and feedback stage. Make sure to *ACTUALLY* cut or pivot the experiment if it’s not working!
Another strategy I love across all areas of life is bringing people into the fold by asking for their help.
According to the Ben Franklin effect, you like someone better after you’ve helped them, even more than if they helped you.
(This is why asking for feedback from an investor is a great way to build a relationship!)
Start with that person’s strengths (“You are great at designing a streamlined process.”)
Acknowledge concerns or reluctance (“I know you are not sure about this new product release strategy.”)
Ask for help (“Would you be able to spend a few minutes mapping out a process that might work?”)
Explain their importance (“Your operational brain power on this will really help the team save time and be more efficient.”)
Something specific they are good at
Feedback on a v.1 or something that already exists (this can take less time if bandwidth is a concern)
Plan or recommendations on how to best implement a high level goal (“Here’s the desired outcome — how do we get there?”)
Finding the right person or training someone (“Can you help me find and onboard the leader we need?”)
A good attitude (“Your energy is contagious.”)
If you’re asking for their time and work, specify how much time they need to spend (“30 minutes to help me think through pitfalls and how to avoid them”)
If they have only criticisms, ask for their suggestions and solutions! (“What would you do? How would you mitigate that?”)
What *NOT* to do
Ask for help and then totally ignore it 🥴🙃😬
What to do instead
Explain upfront how you will use their help and the decision process. Don’t promise to include someone’s ideas. (“I’m asking for everyone’s input and then will use that to make a final plan.”)
Give public shoutouts for any ideas or work they did (“Sarah found a great software option for us.”)
Find something to include — give everyone a small win within the final plan (like in the Core Values process). Even if you don’t have high confidence or disagree about that item, if it’s not mission-critical, it may be worth conceding for the sake of alignment and the larger goal. Again, you’re testing it out and will reevaluate!
#PROTIP
Works for families, kids, loved ones as well. If I do a small part of a house project, I feel more ownership and interest in future projects. When my kids help cook dinner, they’re more likely to eat it. We let everyone pick an activity for family trips — adults have the final say — but everyone shapes the plan!
How do you get your team onboard? What helps you navigate change? Any tips or strategies to share?
Avoiding holiday shopping? Procrastinating on your 2026 planning? Wondering what O’Daily gems you missed while building your company?
My gift to you — the top 5 posts of 2025!
(Is this what you were hoping for? I’m sure I saw it on your wish list! 😂😜😉)
And if you have an extra 30 seconds, please tell me, brilliant O’Daily readers, what do you want more of or less of next year??
Planning is underway and it’s all about founders! What topics, formats, info are most helpful to you? Reply and let me know!
10x your startup’s progress by sending a weekly update. Learn the why, what, and how in this detailed post!
What we’ve learned — good and bad — about starting companies in our Venture Studio with examples and playbooks.
Run this 6-step process to uncover your startup’s culture and then leverage it for hiring, performance, and speed. It’s a competitive advantage if you do it right!
Most people (including me) spend years measuring the wrong thing! Here’s how to align your company metrics with what your customers care about. Hint: it’s not usage data.
You want to support parents but startups can be the wild west when it comes to things like maternity and paternity leave. Here’s how to craft a startup-friendly plan and what really matters (that you may not realize).
What was your favorite post — here or otherwise — this year? Any blogs that you refer back to regularly? HAPPY HOLIDAYS!!
On the tiny, off-chance that you’re feeling overwhelmed with holidays, end-of-year sales targets, and — oh yeah — a new year starting in 3 weeks…
Here’s your playbook for Annual Planning in 60 minutes or less.
Yes, you can do a 12 day silent retreat with monks to fine tune your strategy.
Or schedule a one hour block on your calendar and get most of the value in 0.3% of the time.
If you have more time (like, TWO hours - gasp!), I share a few more planning strategies at the end.
But no need for all that. You can get it done in 60 minutes.
Ready…set…GO!! ⏳⏱️🏃♀️
Select a day where you will have maximum mental capacity (fewer meetings, lower stress).
Pick a “high energy” time (e.g. first thing in the morning).
Do it in a location with minimal distractions. Mix it up to feel refreshed and inspired!
Disable all notifications. You will not succeed if you are side Slacking!
#PROTIP
For extra accountability, add someone to the invite who will make sure you do it.
Ask yourself:
What is working?
What is not working?
What is the most important thing for the year ahead?
Where do I want to be by end of 2026?
You can do this ahead of time, within the hour, or both!
Feel free to add other questions but shorter is better for simplicity and time.
#PROTIP
Think about these questions before you go to bed. Jot a few things down on paper. Let your subconscious work overnight!
Download and copy this One Page Strategic Plan template (from Atlanta Ventures’ Resources).
Prep yourself with this overview and a real life example.
#PROTIP
Set a timer. Don’t overthink it. Trust your instincts. If you get stuck, jot something down and keep going.
If you can, let it sit for a day or two or even share with trusted folks for feedback.
If not (I promised <1 hour), after your first draft, simplify, simplify, simplify!
#PROTIP
Cut ruthlessly. The less you have, the more you and the team can align and focus. If you crush it and have all this extra time (said no startup ever), you can add more later.
Reminder from my boy Warry B: say no to almost everything.
Set calendar invites today for future touch points.
3 options:
Calendar blocks for yourself only
Team/leadership meetings to review (schedule now to hold the time!)
Working session with fellow founder, coach, or other accountability friend
Timing:
End/start of quarter - how did we do? what are next quarter’s goals and priorities?
Mid-quarter - are we on track? (Very helpful to us at Rigor.)
#PROTIP
Include your mission, elevator pitch, and goals in your Weekly Update.
I like a quarterly check point to zoom out and think strategically, but annual and quarterly goals need to be talked about weekly (and daily) to make progress!
Something is better than nothing and 1 hour will get you 80% of the value in 20% (or less) of the time.
5 Simple Tools For Annual Planning - common goal and accountability frameworks that work at startups
5 Annual Planning Strategies for Busy Startups (w/Tools + Resources!) - what to do if you have more (but not much more 😆) than 1 hour
5 Strategies For Annual Planning Success Despite Startup Chaos - how to actually make planning work in a startup
Did you get your annual planning done in 1 hour?? What are your favorite tools or frameworks for planning? Do you follow the same process for both professional and personal annual plans? I’d love to hear about your planning process — good, bad, and ugly!
(P.S. If you’re working through your Annual Plan and want feedback on priorities and metrics (or accountability!), come chat with us at Office Hours in January.)
ICYMI: At Atlanta Ventures…WE LOVE AUTHENTIC DEMAND!!!!!!!
Read MoreICYMI: At Atlanta Ventures…WE LOVE AUTHENTIC DEMAND!!!!!!!
It’s our guiding principle when finding new business ideas.
That’s why I spent a whole blog explaining Authentic Demand including 8 articles other team members wrote, 5 resources with examples, and 7 strategies to find Authentic Demand.
But wait…there’s more!
Today, we dig into specifics:
What do people say?
What are good signs?
What are real examples?
What are misleading “false positives”?
How long does it take to find the illusive and magical Authentic Demand???
Let the journey begin!
What They Say:
“Can I give you money now to build this?” (aka be a Design Partner)
“I also have a friend who would be interested. How do I get them involved?”
“I’d like to be a customer and also an investor.”
“When can we start?”
“I’ve been looking online for something like this but haven’t found it.”
What They Do:
Follow up with you, take a second meeting
Share honest feedback (because they care and want it to exist)
Login or engage with a prototype
Pay for it now (not “when this feature is added” → that’s a warning sign)
Make time to get set up
“You know it when you see it” is true…but not that helpful 😉
Here are specific examples I’ve seen or experienced with startups that found Authentic Demand:
Multiple customers get a tattoo of your logo.
You make a Youtube video of a hacked together version of your product and people comment asking where they can buy it.
Your marketing manager does implementations for a year because there’s so many new customers signing up.
100% quota attainment from every sales rep for multiple quarters.
You have 6 figures of revenue within one quarter of launching, selling a combination of services and off-the-shelf product.
Your customers are really mad about some critically bad bugs but they don’t cancel (because you’re still providing so much value).
Your team is troubleshooting a “high class problem” several times per week.
You hire multiple in-house recruiters to keep up with hiring targets.
To offer the counter-point, here are some things that may seem like Authentic Demand but are not, or things that may feel “normal” for startups but indications that you need to dig further!
Raising lots of money (“good at fundraising” does not necessarily mean Authentic Demand)
You need paid campaigns for new customers (if you’re paying a lot of money to get a new customer, that’s a yellow flag)
Customers like you (but don’t love you)
Easy to get new sales, but low retention/high churn
Getting meetings (that don’t convert to sales)
Many deals are slow rolling
Social media engagement (can be a good sign but this alone is not enough)
People telling you they like your idea (reread The Mom Test!)
Rate of sales is steady but not increasing
Everything feels like a f***ing slog (startups are hard but with Authentic Demand, they are also really fun)
It depends.
Every founder’s favorite answer. 🙃
Salesloft iterated for 3 years, while building a great community of their target customers, before finding the right product.
In our Studio, most founders spend several months researching and testing a specific idea before launching a company.
The “company” still starts very scrappy with one or more of these strategies to continue to learn and refine the offering.
Even businesses that are physical locations go through significant testing phases like the golf simulator at Atlanta Tech Village before launching Intown Golf Club or doing in-house wine gatherings and signing up 100 paid founding members before breaking ground on The Perlant.
So, successful companies can take months or years to find it.
What I have seen to be true:
When you have it, you feel it and it feels fast.
You’re struggling to keep up with the demand.
You’re getting lots of inbound activity.
You’re dealing with problems of growth, not moving mountains to generate sales.
It’s why it’s SO WORTH IT to take more time in the early stages. Better to spend a year finding Authentic Demand than spend a few months, commit hard, and then roll a boulder up a hill for the next 3 years.
Do you agree with the concept of Authentic Demand? How did you find your business idea? When did you know you were onto something??
Gratitude is a superpower for startups and life.
Read MoreThe quickest and shortest way to a more successful life?
Realizing how great your life already is!
Gratitude is a secret super power you can leverage in startups and beyond.
Even when startups are really hard, there’s still so much to be grateful for!
Any of these resonate with you?? What else should be on the list? What are you grateful for this year? (Here’s mine w/📸!)
Not possible without them. Even — or especially — when they’re mad.
Every dollar matters. Especially early on.
Extra, extra, extra grateful for cash flow positive.
It can be hard in the moment but if you take a step back, feedback means that someone (whether customer, advisor, investor, employee):
cares
believes in you
sees even greater potential
Angel investors, early employees, first customers. Those who took a chance on you — before it was a thing — have a special place in your heart forever.
That key person who loves doing what you suck at. Co-founder, COO, future COO, or world-class intern.
Non-dilutive grants, free website design, the legal advice that saved you thousands, deal negotiation advice, and, of course, conference swag. 😉😜😂
Small moments with big impact add up.
Partner, founder friends, non-founder friends, employees, advisors, coaches.
The people who join you for late nights, support your insanity, make you shut your laptop, ask the question that unlocks everything, and most importantly, care about you no matter how your startup is doing.
Here’s 5 free ways to show gratitude or go wild with something off this year’s gift guide. 😉
It’s never been less awkward to say you’re an entrepreneur at Thanksgiving dinner!
From historical figures and How I Built This idols to the entrepreneurial family members and local founders who pay it forward → thank you for blazing the trail!
No one ever gets enough but OMG are we grateful for whatever we get!
The power of a good night’s sleep is incredible:
Fresh ideas
Clearer outlook
More optimism
Better health
Financial, social, political freedom. Having life circumstances that make it possible.
Even when startups feel really, really hard, it’s a privilege to pursue the work, dream, and meaning of building a company.
Here’s my favorite before-the-holidays wisdom from Alex Friedman:
Idk who needs this but I’ve seen a few startups fail because of founder burn out. I haven’t seen any startups fail because a founder took a couple days off.
Happy Thanksgiving, y’all!
The one thing all venture capitalists (VCs) have in common?
Patagonia vests! 😬😜😆
But after that, there’s huge variety.
If you’re new to the wild world of venture capital and startup investing, here’s a primer on the many ways VCs are different!
Many investors focus on companies of a certain size.
Typical categories are:
Pre-seed, Angel, Friends & Family
Seed
Series A
Series B (anything Series B or later is often called “Growth Stage” or “Growth Equity”)
Series C + beyond
How each firm defines a stage can vary. Some may say “Series A” is $1M ARR. Others may say Series B is $1M-$5M ARR.
“Size” is often revenue-based but number of customers, how much money you’ve raised, and how quickly you’re growing can all be a factor.
Why do investors specialize by stage?
You can’t be an expert at everything. (No, not even investors. 😜) Assessing and advising Pre-Seed companies is totally different than Series B.
It requires different people and systems.
Most investment firms pick a lane and are pretty careful to stay there.
Just like with startups, being focused and knowing your strengths is a key for success!
So many types of businesses out there!
Developing software
Building robots
Making food
Constructing buildings
…to name a few. All great businesses. All with wildly different skills, needs, and financial models.
It’s hard to be an expert in all of those things.
(Except for you. O’Daily readers are unprecedented geniuses, of course. 😁)
Most firms will hone in on business types where they have experience, connections, and competitive advantages.
A few examples:
Business Model: B2B SaaS, marketplaces, consumer apps, consumer packaged goods (CPG)
Industry: robotics, supply chain, agriculture, fintech, real estate
Customer, Mission, or Founder: maternal healthcare, underrepresented founders
I love this one — Laerdal Million Lives Fund is measured on lives saved!
Another common differentiation is geography.
Where is the firm located? Where do they invest?
Atlanta Ventures focuses on the southeastern United States.
If you have a business based in Europe, no matter how amazing it is, it’s very unlikely we invest.
Other firms have a HUGE presence internationally. They specialize in Latin American startups or focus on global expansion.
Geographic presence, focus, and expertise can vary wildly among investors!
Another way investors are different is how they invest.
How much money do they usually put in?
Do they lead (set the terms) or follow (come in with other investors)?
How do they think about valuation or deal terms?
Here’s some examples:
Some firms only co-invest.
Some firms (like Atlanta Ventures) prefers to lead and will often fill the whole round.
Some firms write smaller checks but have certain expertise or relationships to offer (e.g. development resources or enterprise relationships).
Usually there’s a balancing act on valuation too. Higher valuation but more caveats and protections. Lower valuation but cleaner terms.
Typically, the later the stage, the bigger the check. 💰
There’s no right or wrong, but it’s important to understand what an investor typically does so you know alignment and tradeoffs!
What happens after investment?
Investors and firms will vary in their philosophy and approach.
(And will usually tell you ahead of time how they work. They don’t want surprises or misalignment either!)
There’s pros and cons either way.
How much control and decision making does the founder have?
What kind of support and value do investors bring?
Are they hands on or hands off?
Do they bring in their favorite execs?
Do they have certain strategies they recommend or implement?
What are typical outcomes for their companies?
More involvement can be a big accelerant — unless it’s intrusive or distracting.
Less involvement can provide lots of autonomy — unless you don’t get enough guidance.
Understand what you want and how that aligns with an investor’s typical M.O.
ICYMI - not every investor is a hard-charging, in-your-face tech bro!
Lots of personality types among successful investors. There’s no “right” way to do it.
Do you want someone who will really push you?
Do you want someone who is calm and supportive?
Do you want someone extremely analytical or more of a people person?
Most founders appreciate a variety of styles and input from investors. It’s good to have a balance of personality types — while also being aware if something really doesn’t work for you.
Finding an investor whose personality meshes well with yours is important. It’s (hopefully!) a 10 year relationship!
They will tell you!
It’s on their website.
They don’t want to waste your time or theirs.
If it’s not specifically on their website, look at what else they invested in.
As far as their personality and playbook, ask questions during the courting process.
Pay attention to their responsiveness, what they help with, what they’ve done with other companies, how they act when hard topics come up.
People tell (and show) you who they are.
Investors and founders both want a great match!
What other ways are investors different? What surprised you about VCs? What’s the biggest difference you’ve noticed among VCs?
I wore a sweater last week which can only mean one thing...holiday season!
Read MoreI wore a sweater last week which can only mean one thing:
The holidays are upon us! 🎁🎁🎁
It’s time to finalize the gifting plan for customers and employees.
Here’s a sample timeline (it’s crunch time⏳), lessons learned from real customer gifts, and 10 budget and remote-friendly gift ideas for employees.
Last year, we shared 50+ ideas for founders.
This year, we got recs directly from founders and top notch gift givers!
Here’s 20 more ideas from YOU (and me — I couldn’t resist adding some faves).
P.S. If you’re from Atlanta and want to shop local, follow the 🍑.
Time. Get hours back with services like 🍑Accomplished App or 🍑My Panda (on Angela Fusaro’s wishlist!) for household management or Base for flexible executive assistant options.
Gourmet Italian gift baskets. There’s a reason 🍑Mercato Di Bellina wins awards. Tal Baum (Atlanta founder and restauranteur) sent me one and blew my mind. Great for families too!
Luxury candles. Great call from Courtney Wilbanks. Who doesn’t love a gloriously delicious candle? Le Labo is a go-to and 🍑Brick and Mortar is a great local option.
Custom gift boxes. Check out the gorgeous options from 🍑EspyBox. They also have subscription boxes for your favorite dudes. Or make it themed with local items via 🍑LocalHippo (founded by Sara Maffey). Check out LocalHippo’s experiences for unique community building ideas!
Snacks. CT Smith clued me into customizable snack boxes from SnackMagic! You could also DIY with someone’s favorite snacks or local specialties. 🍑Edible Arrangements are also delicious with fruit and desserts. Great for an office to enjoy!
Booze. Beer, wine, liquor, cocktails, fancy mixers. Meredith Kowal doesn’t just give money-saving tax advice, she also sends gift boxes from Buonguido Wines. Get on her “nice” list! If you know your client well enough, 🍑Edibles.com ships gift boxes.
Signature scent. Craft your own perfume at 🍑Chémin. Also awesome for a unique customer or team event.
Coffee. Multiple folks said MORE CAFFEINE, uh, I mean, coffee shop gift card. They didn’t specify but I’m sure they meant 🍑Spiller Park and 🍑Kula Coffee. Civilized Coffee offers fantastic gift box options — love this share from founder Mark Patterson!
Easy, delicious meals. Gift cards to fave restaurants, meal delivery, or meals prepped in your house by a chef via 🍑Livin — great ideas from founder (and foodie) Loren Mount-O’Brien.
Relaxation. Massages, mani/pedi, blow out, spa day. What are your fave places in Atlanta? Jacey Cadet and I want to know! I’ve had great experiences, including with groups, at 🍑Suzy Q Nail Bar, 🍑Les Main Nail Bar, and 🍑Jiao Reflexology (foot massages).
Music. Jameson Hughes shared the story of a branded portable record player (with the Charlie Brown Christmas album!) gifted from Shannon Waltchack that’s still in use at his in-law’s house today. Head to 🍑Crates to grab a vinyl of a favorite album, easy to mail if needed (another great idea from Courtney Wilbanks).
Giving back. The most timeless gift that’s always appreciated? Make a donation to a favorite non-profit. I consulted the experts Brianna Jackson, CEO of Heart of South Downtown, and Karen Houghton, CEO of Infinite Giving. They shared more than I can list here so please let me know if you want ideas! A few that stood out: 🍑The Boyce Ansley School, 🍑Our House, 🍑Lazarus, 🍑Inspiredu, 🍑Extra Special People, Katmai Conservancy (fat bear contest!), World Relief.
What are you looking forward to this holiday season? What’s the best gift you’ve given or received? Any other favorite brands??
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