Posted On February 13th, 2018 by Crowded Ocean
The concept of the “trough of sorrow”, coined by Y Combinator’s Paul Graham, has clicked with Silicon Valley in a big way because it describes the very real trap that many startups encounter as they enter the market. They’ve invested so much time and money in the launch that they neglected to consider all the steps needed to maintain and leverage that momentum. It’s like two parents in the hospital nursery looking over the top of their baby at each other and wondering: Now what do we do?
The trough can be avoided with smart planning focused on content, lead conversion and nurturing with appropriate contingency planning. And you better be planning and executing on all these fronts, because in the first Board meeting after the launch, where you’re anticipating nothing but praise for your highly successful launch, the Board is going to give you your moment in the sun and then ask the same question as the parents of that newborn: Now what are you going to do?
It’s natural for market interest in your company to diminish to some degree in the weeks and months after your launch. But just as you went from 0 to 60 in the past two months, there’s no reason to go from 60 back to 0. This post-launch period is probably the first time that Sales and Marketing are coming under tough Board scrutiny—and it’s a time of transition for the founders as well. The creation process is over—we’re now in the growth phase. Which means everyone will be asking about numbers: lead pipeline and revenue first and foremost but also website traffic stats, lead status, and metrics. So you better be prepared.
Here are five steps to take to help you avoid ‘post-launch depression’:
- A 90-day plan: Easier said than done, but no startup team should claim they are ready to launch without a subsequent 90-day sales and marketing plan in place. The quarter after launch should be a fundamental component of the launch plan, its goal being not the interest generated by the launch into awareness, building inbound traffic, leads, and mindshare.
- Contingency planning: Every startup should have earmarked cash reserves to weather any post-launch setbacks. For example, what if the two offers you made to customers at launch don’t drive the clicks and conversions you forecast? If customers respond to door #1, rather than doors #1 and #2, do you have the money and resources ready to quickly tack with a new offer, content and promotion? Or, what if your competition leaps out unexpectedly with a new product that is similar to yours but 25% cheaper? Did you do some “what if” thinking prior to launch to help you mobilize a response quickly?
- Salute three chiefs: It’s a nice—and accurate—saying about early startups, that ‘Sales is everyone’s job.’ But ‘sales’ is one thing: revenue is another. In this post-launch phase you need a ‘Chief Revenue Officer’ (and it may be you): someone who is driving the sales process and making the company aware of where it stands vs. its revenue goals (which should be shared internally). That CRO should be a customer of the next ‘Chief’: your Chief Content Officer. This person should be continuing to add to the content on your website—fleshing out your market profile. But, more importantly, s/he should be generating fresh content that Sales can use to remain in touch with early customers, advancing the sales process by delivering new content that deepens their understanding and highlights the benefits of your product or service. Finally, someone on your startup team needs to be your “Chief Culture Officer” to keep a watchful eye on how the culture of your startup is evolving. That way, you can ensure that the attributes you aspire to are reinforced and even strengthened as your team expands. The Chief Culture Officer should be a team player who is tapped to “report in” periodically on how the culture is evolving and who can flag concerns for the leadership team.
- Content, content, content: As we said in our book, a startup can never have enough content. And that’s especially true post-launch. But with planning, you can build out a reservoir of content to support your demand gen programs, lead nurturing efforts, as well as content that can be quickly customized for new priorities that pop up.
- Listen, test, measure, and iterate: After launch, the path to customer traction also depends upon an iterative approach to messages, materials and focus. In other words, test what’s been done to date (and what response it generated), then tune your plan. Successful startup teams go into launch with the idea of listening, testing, measuring feedback and iterating their sales focus, content and tools based upon feedback and learning from the launch.Launch is a milestone in the long life of your company. Don’t make the mistake of thinking of it as the finish line.