So, Today we will talk about growth and everything
this implies around your startup. First thing,
I have already said that so many times, that I need to repeat it,
again and again and again until you all are so like passed this moment
that you will hate me, and at least you’ll have learned something.
startups=Growth. You can look for thousands
of definitions of startups You know, there is like, so many debates about:
What is a startup? What is not a startup? For example, we hear so many times: “Oh, this company is not a startup,
it’s not on the Internet.” No, a startup is not a thing that is on Internet. We hear so many times:
“Oh, this is not a startup, “because there is no technology.” No there are some startups
where they don’t have any technology. So, I think the most simple definition
of what is a startup, is “startup equals growth” Because, growth is a kind of a very, structuring obsession around a company, that is trying to be a startup and that
obsession will define who you are as a startup. Because, startups become impressive when they achieve a level of growth
that seems otherwise impossible to achieve. If you want to be – if you look around us at all the big startups like,
Uber, for example What is so impressive about Uber? For sure, not their mobile app.
I mean, specially with their new logo. But, what will be impressive
about Uber is that they will, double the number of drivers every 6 months,
and that is really impressive. To imagine that Uber started
only 5 or 6 years ago, and reached to a point where Uber now is, that seems so unique, so impossible to replicate. And that’s what really defines startup. And that’s why the growth inside your company, is the only thing that matters, at any price. And everything you do,
should always come down to that simple thing. “Does what I’m doing
will help my growth or not?” If it helps your growth, you should do it. If it doesn’t help your growth,
you should not do it. Just a disclaimer before starting,
this is why startups are uncomfortable. You know, a lot of people say,
doing a startup is very hard. It asks a lot from yourself. It’s very, very demanding.
But for a very simple reason. It’s because of growth Because, growth hurts. You have to understand,
that this idea that you can plan your growth, take decision in advance
and be in situations where you are comfortable with the growth you are trying to achieve,
is a dream. Like, if you want a common characteristic between
every entrepreneurs that are successful, is that they are suffering from their growth. And, suffering from a very, very personal cost. Because, growth will cost your life.
It will cost your time. Sometimes and it’s something that we don’t
talk about a lot in the startup world: It will cost your mental health.
It will cost your physical health. Because, it’s so demanding.
You reach a level where, everything is always so late inside your company, that you have no other choice,
than working harder and harder. And, by the way, that something
we love to track inside our portfolio, is how much entrepreneurs are tired or not. Like, you want a very single element
of prediction of success? Entrepreneurs, that are really, really late. More like, so many people try to evaluate startup
by how good they look. They have this eye definition
of what a good company looks like. Process, that all very well done.
A team that recruits at the right time. Everyone doing a specific job
and specific task. Blah blah blah. And if you look at every good startup,
they are a mess, they are so chaotic. They are growing so fast that
no one really knows what his job is really about. Because everyone needs to do everything
just to keep operation flowing. And, that’s point, and that situation
is what makes startups incredible. Because, it’s a kind of environment where
you’re going so fast and so well, that when no rules from the external world
and the classical world of enterprise will apply. And that’s why startups are so counterintuitive. Because you need to do things
that seems to be impossible too. Why growth is so important? Because it’s a single element of value creation. And there is something magical about growth,
is that if you are growing, Nothing that happens
inside your company is important. No mistake is hurtful as long as you’re growing. And you know, like there is this joke
in Silicon Valley that I like a lot: Finding who runs a company is very easy:
if the company is growing, it’s an entrepreneur If the company is not growing, it’s the investor.
Because, it gives you what matters. If a company is growing, investors will be like,
“okay, we should not say anything, “because if we say anything, maybe we will break it. » So, they will all be like,
“yeah, just keep doing what you’re doing.” And if you reach a level,
where you are not growing anymore, you are dead. Look at Zenefits for example, who knows here Zenefits,
because it’s not a very famous company in Europe. So, Zenefits is a company that is very young. I think two or three years old,
help me, yeah, something like that. For sure, not more than four years old.
But I think more 3 years old than 4 years old, so. Zenefits’ HR solution that comes for free,
it’s a HR software, that manages all your human resources for free. And why they do that for free?
because they are able to sell you insurance And they act as an insurance broker. And because they act as an insurance broker,
they do so much money, That they have this …
position where they are the.. fastest growing SaaS
in the history of Silicon Valley. Growing from zero to 12 million of annual
recurring revenue in less than six months. So, let’s imagine you have an idea,
you create a company, and 6 months later, you are doing
12 million euros in revenue, annually recurring. And they were supposed
to reach the 100 million step, something like, 7 or 8 months
after their fundraising. They fund raised more than 500 million dollars. Because, when you have these kind of numbers, the
kind of money you can bring on table is unlimited. So, what happened?
They missed a milestone. So, you are doing Zenefits, you miss a milestone,
what happens? You get fired. Because people poured 500 million on the forecast.
And because it was supposed to grow. And so, as soon as you get fired,
everything you have done looks wrong. Oh, the company is a mess. There is no process.
There is no accounting. There is no blah blah. And so, if you look at the letter of resignation,
wrote by the CFO that became the CEO, It’s horrible.
I was so sad this week reading that. I was like, “what a jerk”. How can you go publicly
and say that everything is wrong. By the way you are the CFO, so you
kind of have the responsibility around that too. But it’s so easy, and why? Because when
growth stops, there is no one to protect you. That’s the deal you have with your startup.
That’s a fine deal by the way. Because it’s a very binary game.
You win, you will be on the winning side. You lose, you will be on the losing side. And that’s not so obvious traditionally
in the economy. We have so much industries that are losing, and they are on the winner’s side,
because governments protect them. You know what I mean. So, it’s very important to understand
that growth is a single way to create value. And that value will solve every problem
you have inside your company. There is a story I read in The Facebook Effect
If you want to read a very beautiful book about.. the beginning of Facebook,
I think the best book I’ve ever read, and it will be better than watching
The Social Network is The Facebook Effect. It’s very entertaining. It’s written very well. And it seems to be the most objective version
of the beginning of the Facebook. And there is a story, I love in that book.
It’s a very small story, I think most of the people did not notice it, but
for me, that have been an elimination to read that So, when Facebook raised their first round, the average age inside the team was under 21. And that’s a very important point
in the United States because under 21 you are not allowed to drink
in the United States. So, what do you do? You have raised your first
seed round, not a lot of money, $500,000. You take all the team, 7 people to Las Vegas
to a party, to celebrate that. And they drunk so much in Las Vegas,
being under 21, then when they came back one of the guy
puked inside the climatization of the bus. And the AC broke, and the deposit on the bus was not enough. So they had to pay a fine
of something like $25,000 or $30,000. So, I let you imagine your first board meeting. So, what is the cash situation?
Sir, we have to tell you, “We spent 10% of our fundraising, “in a bus from Vegas,
drinking alcohol, being under 21.” So, you have two situations in that case.
Situation one: you are number 2 on the market. And you are number 2.
So what happen, people will yell at you You have high risk of getting fired,
and everything bad comes around. But, when you are Facebook,
and that your number of users, from the closing of the fundraising
and the first board get multiplied by 10, You tell that story,
and you know what the investors do? They say, “okay, forget it. Send me the bill
personally and I will pay it with my own money. “You should not use corporate money for that.” You see, the difference?
That’s the growth effect. And that’s why also, sometimes in startups,
some people tend to develop, very irresponsible behaviors. Because it’s exactly like being a child,
everyone always say yes to you. You tend to develop a complex, where you think
that everything is granted. Until the time you don’t grow anymore. So, the funny thing about a startup, is that there will be always a moment,
where growth will stop. If you are lucky enough to find your traction,
if you are lucky enough to be in a position where you are growing, you have a lot of early success,
I can tell you that one day, It can be sooner or later, but one day
your growth will stop, for sure. Because that’s the problem with growth,
is that the growth comes with levels. When you look at the level of the growth,
you always look like that, perfect exponential. But the actual number is more like, you reach
one step and you are flat for a few months, and you understand why you are flat and you go
to the second step, so you’re growing again. And after that you are flat again
and things like that. Because of that situation,
every time you will stop to grow, that’s when you will be evaluated
about your behavior, about your operations, about how the company is structured. So I’m not telling you just grow
and do whatever fuck you want, because it’s like being a rock star.
Being a rock star you can do whatever you want Until the day, you are not the rockstar anymore
and it’s hard to change your behavior, and it’s hard to change your life.
That’s what Mick Jagger say: “It’s hard to come back to normal life.”
But I understand why? Because when you get used to that kind of fashion
and way, you have a problem. Managing your growth and specially,
managing the communication around your growth is one of the most important thing
as an entrepreneur, you will have to learn too. So, what does it mean, managing growth?
Managing growth means that at every step, you will find a new way, a new kind of investment
to reach the next level of growth. And when I’m talking about, managing growth,
I want to give you a very simple idea in mind: is that, every growth are created. I don’t know where that idea come from,
but there is this very common idea outside, that the traditional path of doing a startup
is that, you have an idea, you talk with your friend about the idea.
You tell people about the idea. And you are successful. That’s the thinking, the way everyone
imagines outside. Some weird people, who say: “I have an idea, I’ll keep it secret.
I’ll be successful.” But, that one is less and less common.
But it’s there. But the point, there is that your idea that, succeeding as a startup is about
doing something perfect, And because you will do something perfect,
everybody will recognize, how perfect it is. And they will talk about it, to each other
and you will grow. And you know, you have always that —
I love that, because it’s so cute, It’s when an entrepreneur come and pitch you
and say, “I just need that 3 people, “talk to 3 people, that talk to 3 people
and I’ll have, lots and lots of users.” And it’s true because after 12 levels
you have everybody on earth, so… Yeah, it’s quite easy actually.
You want everyone on earth? Just find 3 people that talk to 3 people
that talk to 3 people, 12 times and you have everybody on earth. So, why products don’t grow like that?
Because we are all lazy. Look, how many products do you use, that you like
and you never talk about to anyone? And even worse, take the list
of the products you love, You talk to everyone, and no one uses it. I think, that’s even worse to even understand
what happens in real life. So, in Graph Theory,
there is a field in maths that tried to study how a message get viral what a network is, and how from a node to a node,
things go and flow. In Graph Theory that’s what we call:
The Resistance of a Network. It’s that, for everyone that is convinced,
you will always have people that are not, And, having a key factor, superior to one
is so uncommon. And this is why you need lots and lots
of manual labor. Take an example, how many times someone needs
to get a message repeat, to remember a message? You heard that’s very traditional in advertising.
You know why we see so many times, the same ads? Because, if people doing ads were like
entrepreneurs, they would buy one perfect ad once, and they would all bet,
everyone talk about the ad. But that’s not what we do.
We do very shitty ads, Because we don’t know how to do good ads And we market it so much and repeat so much
that you reach a point where, Like it or not like it, you’ll remember it. And that depends on people. It is between being
in front of a message, between 15 times to 50 times. And so, you imagine if you are with
the worst user on earth, And its 50 times, you need to repeat it so many
times to the same person before he gets it. And it’s horrible, like for example,
I love that story, because, I’m very ashamed of that story, is that,
one day I was in the office here and.. I yelled in the office,
“Fuck, Voyages SNCF (*train-booking app) doesn’t work?” And everybody was like that, like,
“Are you kidding?” Like, “you are really using the Voyages SNCF app
and not Captain Train (*competitor for train-booking)? » And I was like, “uh, no, no, no, no,
I’m investigating on Voyages SNCF and… “Of course I am a deep user of Captain Train. »
You don’t imagine, how ashamed I was feeling. It’s horrible, if you forget the name of your kid
like, “who are you?” “My kid.” Really? Okay. That come on.
It would be insane. That is the level of that mistake, and why?
Because it’s so hard to get something in mind. You don’t really think about it.
You want to buy a train ticket Even if you are talking about Captain Train
all day long, because you are tired, you go on Voyages SNCF So if that kind of things
can happen at that level, imagine, average user that don’t have any
emotional link to the company. by the way, Jean-Daniel Guyot
did not talk to me for 3 months. Because he learnt about that story. So it’s to tell you how big consequences
can be around that. Let’s take 3 cases that are very different
in their growth management, that are at TheFamily and we will show you,
what managing growth is about. Save. Trusk. Agricool. So, I choose these 3 companies first because
they are very good companies. And it is better to talk about good companies
than the bad for sure, but also, because we have very different growth constrain. So the first one is, Save.
Save’s job is very easy. You bring your iPhone, You need to think about the fact
that Save can save you. So, first, the name kind of helped.
It’s not a bad branding. It can be like, just a little bit about that.
Pay attention about, how you choose your name. Because, entrepreneurs are so denial about that.
They choose horrible name, and you try to play the writing test with it.
You tell someone, “write that name”, and if they write it horribly, and you tell them,
“you see, you will never be viral.” And they are like,
“No, my user knows how to write it.” So don’t be in denial. Take very simple names
that people can remember and talk about, because it’s so stupid to don’t have a opportunity
to grow, because no one can find you. Like, I think, that’s one of the the worse.
We should do the top 10 reason to not growing, and that one will be the first one.
Yeah I love my name, so I’m not changing my name. So, Save is a very, very complicated
company to scale. Because, you are not breaking
your iPhone everyday. You can divide companies between:
companies with very common usage, and the companies with very uncommon usage.
So how many iPhones are broke everyday? Millions, around the world.
But the problem is that each user of the iPhone, broke his phone at maximum may be, once a year. Balthazar adds a family every month,
but normal people normal people will do that
once a year, twice a year. I’m not sure, three times a year.
It’s a very common usage. So, the problem is that as an entrepreneur
you will think stupid things like, “Oh, there is a high demand, because millions
of phones are broken outside.” But you will not see that the problem
is how you put yourself in front of these people, and be in their mind at the time, they need it.
Because it happens so uncommonly. That’s one of the worse situation to solve, because growing product that have very rare usage are very complicate growth.
So, where Save became so incredible, is that they realize, that most people with broken
iPhone stay with the broken iPhone and use it. And that’s something like that is kind
of interesting to analyze, is how lazy we are. We never imagine how much people
have high tolerance for things, that is always much higher
than any entrepreneur will imagine. Because, if you look the view an entrepreneur
in that field, it will be like, “Someone broke his iPhone.” So it will go on
Google you and look for, “how to fix my iPhone?” That will be the traditional mindset about
the problem. But that’s not what had happened. “Oh, fuck I broke my phone.
Oh, it’s still working.” So, you will not to like,
“I need now to repair it.” So, thinking of that, the question was,
“Where can I put myself in front of people, “that will be like a big sign saying, ‘you have
a broken iPhone in your pocket, I know it’, “And, I can solve that very quickly. »
So one of the first secret of Save, is that they invented the methodology
to repair iPhone fast. Why is it so important to repair iPhone fast? Because it’s not a question of having
the iPhone repaired, it’s question of having a cost of repair
that is very low. And not monetary cost but opportunity cost. Because, why noone thinks, with a broken iPhone
that he should bring his iPhone directly? it’s because he still wants to use his iPhone. We are so dependent on the iPhone, that there
is no way we’d go and give it for three weeks. Like if you go to the — you know how many
percentage of people go on the genius bar and they get as a reply, “yeah, I can fix
the iPhone for free. It will take a month.” You are like, “what?”
If you are rich, you will buy a new iPhone. And, if you are not rich you are like:
“give me back my phone.” Like, “You want to take my baby, a month?
Like, are you serious?” And it doesn’t make sense
because people need to have this idea, that you will take the phone
and repair it very fast. So, you see, sometimes growing is about,
finding a sub-problem. A problem inside the problem that no one saw.
And if you can solve that’s sub problem, Every other problem on the chain of value
will get solved. Because if you can convince people that
you can repair iPhone very fast, you’ll be in a situation where people will start
to think of you as a solution, because you will solve the real problem that:
“I don’t want to be out of my phone.” So, how do you get that message
over the Internet? How do you put message
like that in the mind of people? So hard, and that’s where I think,
most entrepreneurs have lack of imagination. It’s that, they think their job is so caricatural
around the kind of tools they have. So, for example, you want to be an entrepreneur
and you want to do something over the Internet, So, you will try to find a solution,
over the Internet for every problem. Where Save has been genius is that they opened
fucking corners in supermarkets. Why supermarkets?
Because you go to do your shopping, you’ll let your phone for 40 minutes,
you come back, you get it. It’s repaired. It’s dead simple. But why it works? It works, because
it solved every problem on the chain of value. How was it in the mind of the people?
Just be where they have an iPhone that is broken. So people get inside the shop
with the broken iPhone, they see a sign telling them,
“During your shopping, we can repair your iPhone.” So they go back and they put their iPhone and it
will be repaired in 40 minutes instead of 3 weeks. And that methodology,
that’s a scaling methodology. Why? Because now, let’s do a very simple calculation. Let’s say we have 100 shops, okay?
So 100 corners in supermarkets. And let’s say, on average 10,000 people
go in front of that corner a day in average yearly return. So 200 days in a year, that’s 2 million people. You imagine.
Like, that will be so much people by corner, that if you replicate that by 1000 corners
or 10,000 corners, you’ll have marketing impact, that no one can
have them on the market of the web. Because if you try to buy AdWords to replicate
exactly the same things, you will not solve the problem, and you will be in a situation where
you will never, never bootstrap your company. And where the company becomes great is that
all these people that repaired their iPhones at Save, and learnt about the brand
talk to their friends, and their friends can find
on the Internet about the shop, and they can get iPhones repaired
over the Internet. So you see how a physical thing
can bootstrap something online. And the online comes back to the physical thing,
that comes back online. And why it’s a startup? It’s a startup,
because they achieved the level of opening a shop that will seem impossible,
in traditional retails. Because, what’s the difference between
Save and traditional retails is that they are born over the Internet.
So all employees are on Slack. Every software from shipping management
to the invoicing inside the shop, to the management of the team, is developed
internally by the product’s team. Etcetera. So you will be in a situation where
everything you do and everything you design, will be a thing of scale. If you look at traditional businesses,
they will open one shop, try to be profitable, wait to be enough profitable to take the money,
and opened the second shop. And it will be linear.
It will never be exponential. And you will never take profit
of what growth provides. So, what are the side effects of growth
on a product like that? For example, last month
Save bought so many units, of screens and chips and things,
that no shop in France, was able to do any repairs for three weeks. That’s called a corner. Because you reach
a level of growth that is so fast, that costs so much, because —
Save now is opening one shop a day. You imagine, everyday you have a new corner
and you will be soon, two shops a day and I think before the end of the year,
will be three shops a day. They went from 100,000 revenue a month
to 100,000 revenue a day. In a year and they are 2000 people
only in 2016. 2000 people joining the company in one year.
That’s what is called scaling. That’s what is called, growing. Because
you push and you push so much at every level that it can broke and you can die at every corner.
Seeing it.. But, if you survive you are in a position
you will have level and a size, that will kill everyone on the market.
Because you will be so big, that you will build a monopoly. Because when you will go and do your market
to buy supply, no one can go around you. So, another example is Trusk.
So who knows, Trusk? It’s not a —
Fucking hell. It’s a good team. Trusk is seven weeks old.
We don’t really know how we do that. So Trusk is about moving big things.
You want to move a sofa, buy something from IKEA. Do a moving from two apartments. Having a big piano that you
want to bring from an office to another. You call Trusk.
It’s Uber for moving things. It’s a very simple idea, I think.
Thousand of people already had that idea. But what’s the difference between
Trusk and others? It’s that Trusk have exactly
the same problem that Uber — Sorry, exactly the same problem when Save,
even worse. Because, moving things is hard. But people that needs to move things
are very uncommon. We all need to move things once a year,
or twice a year. But it’s not like, we are moving things
all day long, all the time. Like, “yeah, I’ll buy a new sofa every day,
because Trusk exists.” You will not have this kind of pretension.
How do you get inside the minds of the people? It’s very easy. You have two choices. Choice one: You try to find a way like,
on Internet again to scale. But you will have the problem
that everyone has over Internet, is that, it’s so hard to get noticed. I don’t know why entrepreneurs
are so obsessed about doing the apps. That no one will download or doing websites
no one will look at, or doing things like — If you talk to 95% of the entrepreneurs that
come to pitch us, it’s always the same story. That is, I’m doing an app. I’m doing a website.
I’m doing things. I’m doing a.. And it’s always the same.
How do you get people on it? “Yeah, we will do it and they will come.” So, no. You don’t do it, and no one comes,
because no one cares. And if you don’t realize that,
very deeply in your heart, you will never be able to go to the next stage. So, if you’re someone like Trusk,
you will struggle for growth. Like, the first five or four weeks of Trusk
have been horrible, because there was all day long
calling people on Le Bon Quoi So, how we do?
We look on Le Bon Coin We take their phone and they say, “oh, I see
that you are selling your sofa on Le Bon Quoi “How you will deliver it?”
“I don’t really know, like the guy will pick it.” We have the solution. We are Trusk.
beep, beep, beep. Like, you have to imagine that people
that are selling things on Le Bon Quoi, even if Trusk can save their life,
we don’t really care. So Trusk understand that the problem was
not on the Sell Side, it was on the Buy Side. Because, people that really need to get around
the buying thing — The people that need really to move things
our not so much people that sell, because when you are on Le Bon Quoi,
people would say, “come pick it”. But it’s the people that buy it. So how do you get it in the mind
of the people that buy it? They did a plug-in, that goes on Le Bon Quoi
and, it’s a chrome plug-in. And so, when you look at an ad
on Le Bon Quoi, it tells you how much it costs to get it delivered to you. And so for making buyer’s life very easy,
to compare between products just based on cost of delivery. You see, how you reverse something.
And so, how do you get that installed by people? By being very, very aggressive around the ads. So, one of the things that is great about Trusk
is that we are very good at doing viral videos. You can go Trusk fan page on Facebook
and you will see, we have some videos
that have reached 8 million people. We are so good at that. And, what we will do is that, we do
a lot of funny videos that send on this plug-in and that plug-in send back to the Trusk website
and Trusk is running, thanks to that. So, you see some time managing growth
is about piggybacking yourself, on someone that already have the clients. If you can find way, like if you have
a huge concentration of users at some point, It will be good to piggyback yourself on them
and try to find of a way to convince people, Very rationally that, you are a good solution
for the usage that we have on the website. And the goal for any company like that,
is to reach a tipping point of awareness and that tipping point will be a point where,
everyone will know Trusk. And it will become something
everybody has in mind. But you don’t become that without
working very hard and very, very manually. Like, if you want a good image about
what the work involved of launching a startup, think about a car that you
have to manually launch. It’s so tough. Because you need to reach a level of speed where the engine will, just start
and work by itself. Doing a startup is exactly the same thing.
You need to reach that level, and you need to reach it fast. The last example is Agricool. I love Agricool.
You can go and look at agricool.co It’s the first strawberry company in Cooltainers,
doing strawberries with 90% less water, Clean energy, all year long.
It’s the best strawberry you ever had, and it’s coming from an expert in strawberry,
I can tell you. And the funny thing with the Agricool is that,
that’s the kind of company where you need to grow, before having anything. Because that’s the problem with all these company,
is that they want to change something in the world that is so hard to change, that we need
to be successful before delivering anything. Like if you are Agricool and you think
the traditional way of doing Agricool, what will be the traditional way?
The traditional way, you will build the Cooltainer And you will have strawberry, and you will try
to sell their strawberry everyday, and you will show that on one Cooltainer,
it works. And the model works. The problem is that,
it cannot work on one Cooltainer. There is a lot of technical reasons for that. And one of them is, because you need
a lot and a lot of R&D. So, if you do only your R&D on one Cooltainer,
you cannot paralyze, experience. So, let’s say you have 10 Cooltainers,
and strawberry takes four weeks to grow. If you do one experience on one Cooltainer
you can do one experience every four weeks. But if you have 10 Cooltainer, you can do
10 different experience every four weeks. So, you get why you need
many Cooltainers at the beginning, to achieve the kind of experience you need
to produce a lot of strawberry, because you need to discover a lot of things
by trial and fail. And that’s why are doing a company
like Agricool is hard. So, Agricool is in this category of company
that are very uncommon, that is called Capital Intensive. You need to fund raise between
5 to 10 million in the first, just to launch. So, two choices.
Choice one: you will write a business plan, and you will do a simulation of a Cooltainers,
and you will go and preach every investor on earth and in five years, maybe you will get a million.
Because it looks crazy. Like, imagine someone come and tell you,
“I will make strawberry in Cooltainers, “and provide strawberry worldwide.”
You will be like, “yeah, sure.” But why Agricool is magical,
because they bring people to the Cooltainer, people try a strawberry,
and there is a before and after. Everyone that tries a Agricool strawberry
is so excited. So, what you do?
You act the process. You act your growth You understand that you will not grow linearly
but you will grow by step. And at every step you have a very
simple KPI to achieve. And the first KPI to achieve for Agricool,
have been to have 20,000 people that wants to try the strawberry. There are 20,000 people
that are waiting for strawberry in Paris. 20,000 people waiting for something is a lot. So, what you do?
You take that and you go to the city hall. and you tell them,
“I need one place to put my first Cooltainer.” And you build your first Cooltainer
And you don’t try to build a Cooltainer, that will be your final Cooltainer, but you will build a Cooltainer that will
produce enough strawberries for demonstration. And, that’s where it becomes easy. Because if you want to build a Cooltainer,
that will be the real Cooltainer, you will need a lot of R&D. But building a Cooltainer that will produce,
20 or 30 very good strawberries every cycle, It’s enough.
So you take out every good strawberry, and you made —
it’s 30 occasions to pitch. So you, bring 30 people,
you put them in the mouth, and you say,
“yeah, there is only one somebody for you.” And people have such an experience,
that they go and talk about it. And you see, like sometime in using your growth
is about understanding like a chess player, that you need to sacrifice something
to achieve a better chess mate. If you are Agricool and you are obsessed
by R&D at first, it will not work. You need to convince people
that the strawberry are good at first. That’s your first goal. Not scaling. So, if you are obsessed about growth,
you need to grow, not in real life, but online. And this is why Agricool is doing
again, their website for the third time. Because they are trying to be a phenomena,
before having any reality. Because that will, like, you know, it’s called,
“fake it until you make it.” It’s one of our favorite strategy
at TheFamily. It’s because, you will bet,
everyone starting with a dream. So, let me tell you a story.
Before yesterday, I had a dinner, with one of the top 10 executive at Apple. And it was one of the best dinners in my life.
I am really grateful. One of the funny thing of doing what I’m doing
is this kind of shit. Because you meet people that otherwise,
you will never have the level to meet. And I asked him, that question.
Why Apple is so successful? Like, what makes Apple so unique? I don’t know you, but me, I’ll always
be jealous when I think about Apple. Because I’m like, how it’s possible?
How it’s possible to do things that suck so much, Like iTunes. I don’t know a product that is more horrible
than iTunes on my computer. But, you are in monopoly and everybody loves you,
and what you’re doing is amazing. Like, how can you made it such a mismatch between
what you are, and what you pretend that you are, and what people think you are? At Apple nothing align. And I’m saying that, I am a very big fan.
I have two iPhones, one iMac, one fucking Apple Watch,
that I never wear. Like, everyone that bought an Apple Watch,
it’s kind of charity for Apple Yeah, Apple launched the product,
let’s buy it and never use it. So, how is that possible?
And he made me an answer, That I will not imagine. It’s only because Apple
is only company on earth that is dream driven. Everything that Apple starts, is by a dream. Like, they have is so clear definition of a dream. The dream so high, so big, that people
are kind of illuminated by the dream they have. And the dreams are so beautifully expressed,
in such light, that even when we do Apple Music,
it looks revolutionary. It’s called Spotify, seven years late. But, it’s a dream. And that’s the power of Apple and I think,
most startups underestimate that power. Why Agricool is such a growing and successful
company at TheFamily, without achieving yet anything?
It’s because their dream is so big. They want to change the way we eat on earth. Like, what do you want
as a bigger dream than that? And I think, that most entrepreneurs,
have a lack of intensity, about the kind of dream they try to have. When you talk with Damien Morin from Save
and you tell him what you’re doing? I think, the boring answer will be,
“I repair, iPhones and take a 20% margin, “on every repair transaction. »
But when you talk to him He says,
“it’s like I want to save every device on earth.” That’s big.
It’s so big that it’s impossible like — There is so many markets where
Save will never go and fail to go. And I’m sure if he hears me saying that,
he will laugh. He will say,
“no, you will see. We’ll do it.” Because he is fucking crazy.
And because he has this kind of mindset that is out of reality and out of touch,
that is doing big things. And if you want an advice by the way
like a lot of people as myself, If we should be entrepreneur or working
for an entrepreneur, he should be dream driven. Like, you should think like,
I’m the kind of people that dream big, or should I be the kind of people that work
for someone that dream big. And, that thing really illuminate me, and why?
It’s linked to growth. Because if you dream big, you will see that,
you need to grow fast. And there is only one way to grow fast,
is to push and push and push, to a point where it seems impossible.
You will be always, always dream things, that it seems impossible to do.
And that is scary. One of the story from Save is that
at the beginning of Save, they had five shops. And they decided to open five more.
And Damien gets scared, really scared. It was like,
really, we have a opened 5 in a month, like, if we do five more, we will die.
We have not the cash. We are not sure it works and blah blah. And the co-founder of Save that know one
ever talk in the press, but.. is as amazing as Damien.
He is called Cyril. Cyril told Damien that sentence,
that I will never forget. “Until now, we was walking.
Now we will start to run.” And he was really like kind of,
satisfaction from education point of view. That someone was ready to make this company
in a situation where this company can die. Because that’s what no one tells you,
about the growth thing, is that growing at that level, and growing so fast
is always something, that can put your company in a situation,
where you can die. And if at every step, you don’t have the risk
of dying, because you are not growing fast enough. So the growth is very important, and one of the thing that will make
no one growing fast, is having a plan. You know why?
Because people always believe their plan. If you tell yourself,
“I will do something in six months” It will by chance always
take you six months or more. You should, if we was not like — if plan doesn’t have an influence
on our psychology, people will say, “I will do that in six months”
and a week after, it will be done. But look around you, that never happens. What happens is, if you tell yourself,
“I will do something in six months” It always takes six months. And maybe more, by the way.
Because we are bad with plan and bad with deadline and so we will just procrastinate
and we will go to add time and time and time. So people that want to grow very fast,
will never think in term of timeline. They always think in term of milestone.
So what is the difference? The difference will be, to never think
about your company, in terms of time based milestone. But always to think
in terms of KPI based milestone. So, if your Safe, the worst way to plan yourself, will be, “I will open 1000 shops in a year.” That’s his bad way.
If you think in term of KPI, you will say,
“I’ll fund raise when I will have 100 shops open “and so I will try to open 100 shops,
as fast as possible.” And if I can do it in a month,
I will do it in a month. If I can not, I will do it in two months
and three months, but whatever time it will take, my goal is to get 100 shops to test myself
and to go to the next step. So another example would be, like so many people
who start the company and say, “I will do a beta for three months,
and I will get out of beta in three months, “and launch the final product, and when the final
product will be launched, I will fund raise.” So they think everyone outside is waiting for them Like, “yeah. You have launched three months ago.
Congratulations, you can fund raise now.” So, the good way to do that will be,
“I’ll be in beta until I get 10,000 users.” And that can take a week, or a month, or a year.
I have no idea. Or just try to do it as fast as possible. “And when I will reach 10,000 users, I’ll think,
that product is fine enough, so I’ll fund raise.” You see, it’s a total different mindset. Because, in that case your goal will be,
to put yourself in a position, where you will be in a situation,
that the only thing that matters for you, is how can you reduce your time frame, and how can you reduce the time
it takes to do things? I think the most crazy story about that
is Uber launching team, Because Uber when they launch a new city,
they have a dedicated team doing that. They have a team that go from a city
to another city, just to open cities. By the way, it’s one of the best idea ever.
Because traditionally in business, You will go for example, San Francisco
and you want to open New York, So, you will hire a team in New York
and their learning curve will always go from zero Because they will need to learn,
what it takes to launch a city. Uber did opposite. Uber said that the team
that will launch San Francisco will go to New York and we will find someone to manage, San Francisco. Because it’s much easier to many something
that is successful, than wanting something, And so when you go to San Francisco to New York,
you already have the experience of having launching San Francisco.
So, you will do it faster, and you will go to Chicago,
and you will go to Paris, you will go to London. And even if there is things
that are specific to the city, there will always be things that are so common,
that you become an expert. And and again the story of riding the back,
that I always talk about. If you talk to the people that launch city at Uber
like the head of launching worldwide, she’s 26. She was an intern at Uber,
and she is one of the most important executive, It’s an incredible woman, and when you talk
to her, you don’t get anything. Like, I have read so many interviews
and you’re like, Yeah, she doesn’t have any idea why it works. Because it became so natural,
that she can really explain what happened. And they have all these process,
that are counterintuitive that only the people in that team understand,
and they become so good. So why am telling you that story?
If we do here, a brainstorm, about, how fast a city can open? Like, let’s do that. Who thinks, it is possible
to launch a city in less than two weeks? Okay. Raise your hands, up. Okay, now, who thinks that it’s possible to —
stay raised, because that’s the exercise. Who are these that we can raise,
a city in less than a week? Okay. And who thinks that we can launch
a city in less than three days? Really, you think that? You think that, we can launch a city
in less than three days, you are not funny. So.. You will see it coming. Uber now
is able to launch a city in three days. Let’s imagine, you are doing a meeting
at Uber headquarter and you are doing a plan. And you are doing a plane about, how long
it should take to open a city? Do you sincerely think that anyone in the room, will believe that it’s possible
to do it in three days? It will seem totally nuts.
Like three days, impossible. But when you did it every year, for five years. And you became so good at process,
at standardizing things, at software, at payment, at blah blah blah. That you build an infrastructure,
where you discover how fast it’s possible to do it and that’s when a company becomes magical.
It’s when we do things that is not possible to do. Exactly the same thing
when opening a new shop every day. If you talk to any expert in retail,
he will tell you that it’s impossible. And that’s the point. The point is that
in the startup growing is about doing things, that are totally outliners. Growing fast is about finding secrets,
that you put your psychology in a set, where you put yourself in a position where,
you can find things that are impossible to do and it becomes natural,
because you discover secrets about the market, that no one will ever discover, because no one
will have ever pushed to that level. And it will cost. It will cost money,
it will cost energy, it will cost a lot of things. So, what is the first problem with growth?
Is that because it costs, the first tools of fear,
from growth are investors. Why? Because no investors in Europe are used to lose a lot of money, very fast,
in a growing situation. Because we don’t have a lot of money first,
so we cannot — Like, that’s the biggest single problem
in Europe in venture, is that funds are so small, that if you tell someone
that you will spend 15 million in six months, they they will be like, “yeah, what we do after?
I have no money to put more.” So, you need to learn,
to put yourself in a situation where you will endure
advice from your investors. If they are not the kind of investors,
that like to grow aggressively and you need to put yourself in a position,
where you can find the money you need from, any source possible, just to achieve that
kind of level. Because if you don’t do that, you will end up like every,
for example, local taxi company, that don’t understand why you were so big. Because if the idea of Uber, before Uber,
Uber is the only one that grew and when you grow that much, you become
a kind of monopoly. A driver monopoly, a car monopoly,
and things like that. So, again, if you play it well and if you grow well,
you will have the control of your destiny. More you understand your growth,
more you will be in charge of your own company. Because no one will ever want to stop that. Companies stop to think about how to get managed
and how to get optimize, when they start to grow. And there is always a day when the stop to grow.
And they need to become adult. So, actually, it works a little bit like,
when you are a kid, When you’re growing,
no one really cares about what you will be, And as soon as you stop to grow biologically, people start to be worried about you and think,
that you should do something in your life. Same thing with startups.
As long as we grow, no one cares. Because, it’s natural. We need to eat a lot.
We need a lot of money, Because we are growing and we are becoming
bigger than anyone who will think. But as soon as we are at that level,
there will be no one to be scared. And that’s where the fear of death starts. The biggest problem with startup is that,
there is a misalignment, between every stakeholder level of risk. So, that’s something you really
need to understand is that, every stakeholder, inside your company,
will have a certain tolerance to risk. So, let’s be funny. If you take your banker, their level of risk taking will be at zero. If you take your landlord, the guy that rent your office, like he will
need to believe that your risk is below zero, But, if you are talking to, an intern, their level of risk will be infinite.
Because they don’t care. Like, we notice that good companies
attract people, that are not scared to lose their job. Bad companies attract a lot of people,
that need a job. So, because they need a job, because they
are bad, they will make the company even more bad. Because it created a cycle of fear.
But when a company is great, they attract people that can do anything. If you look at TheFamily, you can take
anyone working at TheFamily, and he can work anywhere else.
No one in our team has a fear of unemployment. Even people in our operations,
receive hundreds of offers a month, to go to work for them. Like, even our cleaning lady receives,
every month and offer to get hired. Because people find that it’s very clean here.
She’s kind of magical. So, is to show you that when you have success
it creates, a kind of glow around your employees, at every level, and people are very under hunting, to get a better salary, a better opportunity
and things like that. So, if you look at the fear of the death. It’s one of the point that makes
every company at a moment, that will be in the situation, where they will
start to think twice before doing something. A good example of that is,
that more company becomes profitable, more, it is risky to invest the profit
in a new venture. If you take some company like, Apple like, they have so much profit,
but they don’t do anything with it. Why?
Because, first, I think they don’t care. But, obviously, also because they have a fear
of death. And more than any company that have been
so close to death, that until today there is still this feeling, that everything
can go wrong. So we need to save. And that’s what you need to go against
in your startup. Because as a startup, the fear of death
is the most dangerous thing, you can face. Because you will be in a situation where,
if you don’t realize that, at every step you can die. You will never do something magical and
something that will be considered as impossible. So, is part of the job to fear.
It’s part of the job to get bankrupt. It’s part of the job, that everything goes wrong. So, most of the time the first easy growth
to start is the Short-Term Growth. Because everybody is thinking
about growth hacking, blah blah blah. And I think we have a huge responsibility
around that. But I try at every growth hacking conference,
to put a disclaimer: “Growth hacking is for very growth company.” Life you don’t growth hack something
that is at zero. Because, growth hacking is a kind of catalyzer.
You don’t catalyze something that doesn’t exist. You need first a shimmy cold interaction,
and then you catalyze it. If you catalyze something where
there is no shimmy cold reaction, you will never get anything. So, for get any big plan
for your first 1000 customers. And focus on doing things manually to learn. I don’t know how much time
that we need to repeat it, and I don’t know why people don’t want to do it, I I have my theory, because it’s boring. Like so many people that want to do the startup,
they want to have fun. And doing growth hacking is fun,
because you look smart. And going in street and trying
to convince people is not fun. You look dumb. But it’s the only way to do it. There is no other way.
Short and rough is manual, always manual. I will tell you a story that I love. It’s my friend in Silicon Valley.
He has that company, that built a patent tracker. So, you know, when you have a patent,
and you need to protect your patent you need to track any claim,
that come around the patent. So, some companies, usually you pay a law firm,
a very expensive amount of money, so it can pay an intern,
a very low level of money to go on the website everyday
and check various claims. There is some genius that had this idea to say,
“let’s do a software to do that.” So the problem is that WIPO, like
The International Patent Office they don’t like to have their website crawled. So they put captcha on their website, to check that the pages looked at by humans. And if you look, every company
that is trying to hack the captcha, they hire engineers, that will find a way,
to crack the captcha, and because WIPO have nothing else to do
in their life, they changed their captcha every month. So you have this like mouse and cat run
between the captcha maker and the captcha breaker. And Pattern Safari was best technology,
at breaking captcha. Like the guy adds these 2 engineers,
that have been so genius that we sent every captcha
on Amazon Mechanical Turk. So there was a captcha appearing on iFrame. that and Indian was paid one cent
to put the captcha. And the captcha was so (inaudible),
he was telling everyone that is his technology. And so everyone was spending millions of dollars,
then we were just spending hundreds of dollars. And it was so funny to watch as a game. Why?
Because we are smart. And the others are not smart, obviously. But, also, we are obsessed by doing things well. Another example that I saw recently is,
Mattermark against Tracksen. So, Mattermark is a company that try
to analyze data for private equity company, around the world.
So you will put the name of a startup, and it will tell you all the data,
you have about the startup. And it’s a costly product.
It costs 12,000 a year. But, when you are a investor,
you need that kind of intelligence, to watch competitors, to watch fund raising,
to watch things. And Mattermark is an incredible team of PhD
and data scientist and blah blah blah. Tracksen hired, 800 Indians in a year. Calling every startup in the world,
and putting the data by hand. The quality of the Tracksen data is so higher, and Mattermark is so low. Because solving that problem
on a computer science site is so hard, but having 800, I’m not kidding,
they hired 800 people in India, that called all day long,
and you know what is crazy? Is that they have talked so much,
about one specific segment, For example, where each can launch
in other country of the Europe? So I called the analyst
that is doing all day long, like UberPop and each competitor
around the world. And I talk four hours with the guy,
and the guy was like, so good. Like, I was amazed. He knows every numbers,
everything about everything and, He was costing like something $25 an hour,
to talk to him. And you are like,
“my God, poor Mattermark.” Like, how do you want that a computer
be better than that, in the short term. It’s impossible.
So sometimes you just need to be dead simple, and you just need to be good at being dead simple, and that’s is what is hard with short-term growth. Is that most of the time people don’t realize
that is just a question of yourself, putting your community out.
For example, so many B2C company at TheFamily, never have any of their friends using it. It’s so weird.
I never get denial. I don’t get that. I don’t get how people can look to your face,
and explain that we are doing growth hacking, when no one around them is using,
what they are doing. Like, for example, we have this company
that was doing a messaging app. And I was like, “yeah, you are using
the messaging app with your friends?” No, we are using Whatsapp. Okay. So how you will convince users? “Oh, we are planning to fund raise
5 million to buy ads.” Yeah, sure. Please fund raise.
Yeah make it rain, guys. I don’t know, it’s weird like, you are doing
a messaging app, that anyone can use. It means that everybody around you should use it. And you should use that as an argument. And if no one around you uses it,
you should tell yourself, “Oh my God. Its first a bad idea
or may be a bad product, “or maybe a bad execution,
or I did not get something.” But you cannot go and pitch people like us,
and tell I need to fund raise to buy ads, because we did not start any communication. Like, my favorite sentence ever, “Yeah we worked
at it so hard, but we never did communication.” Never tell someone that.
It’s like coming to a sports club and say, “I’m a champion, I never did any sports.
So when I was start, I’ll be so good.” No. When you will start,
you will hurt, like everyone. And I can tell you when it’s about sport. So, that manual growth of course, has its limits. You will always reach a point, where,
you will not be able to keep growing manually. If you look at that Indian company,
that is having 800 employees around the world, around India, they cannot grow to 8 million people
calling every company on earth. Like, there is a level where everyone has to stop
and develop software, and scale. Because, you cannot grow like that for ever. But until you reach that point, until you reach the level where
it’s not possible to do things manually anymore, you will be trying —
it will be the point where you will start, to find automatic solution, growth hacking,
marketing, developing things like that. So, the only way to know,
if you have reached that level or not, is to track your Metrics.
And you should try to never add any metric goal that is not relative.
So let me explain to you, that. It’s impossible to know,
if you are going well or not, in absolute numbers. And there is a sentence I always tell my
startups, is that, benchmark is full of losers. Only losers compares themselves to others.
Because that’s such, loser attitude. Because, if everyone is bad in your industry,
how do you feel to be less bad than everyone? It should never be a satisfaction. You should be like,
“okay, I will push every day to be better.” And so it comes down to the view about Metrics. So many people, for example,
specially in e-commerce There are so many people in the e-commerce,
that come and tell you, Oh, I have 1.5% conversion. And a range in my segment is 0.9,
so I’m doing 50% better. Yeah, everyone is bad and you are not doing 50%
better, it’s just that you are more lucky. If you are doing 1.5% conversion,
your only goal should be, every week, how I can increase that from 1.5%. to 1.6, 1.7, 1.8, 1.9,
and you should never stop. Like, we saw companies like that, for example
we told people look, you will focus on your conversion rate, and you will not stop until,
you reach 50% conversion rate. Like, will love to do that kind of a joke,
with entrepreneurs. Because when we say that, we know in our head,
that it is impossible to reach that. Like, no one reached 50%.
Until today, you had people that reached 60%. And, they will never reach at 60%,
if they have benchmark themselves. And you discover things like, “What, you put a pictures of your team
on page and increased conversion?” You are like, “What?”
Okay. Let’s put team picture on every page. Everyone increase conversion.
And that’s how you discovered new things. Because you never tell in your mind,
that something is impossible. And you don’t imagine how much we are good,
at putting psychological limits around growth. This is why you need to work against that,
by having a view of the world, that is just about small improvements. If your come and you say,
“okay, my goal is to reach 20% conversion” And you are at one. You will be depressed. Even if it’s a benchmark,
because you will not start as big as a benchmark, and you will have psychological impact. So the methodology we have at TheFamily,
is called: Up or Out. So, it’s very easy. You look at your metrics
on first week very naturally. So, you launch your product,
you look at how many users you have, what conversion rate you have,
and whatever you have, and the tell yourself that every metrics will grow,
a little bit week after week. And just try to push. That’s it. Whatever level you start.
Because even if you start with one customer, and you are growing 10% a week of a year, you will have at the end of the year,
half a thousand customers. If you do that for a second year, after a year,
you will have around 50,000 customers. And if you do that year over year,
again kind of difficult, But you will be around 500,000 users or customers. So you see, like your small numbers,
growing week after week, with consistence can become really, really big. In the opposite way, if you benchmark yourself.
And if you say, oh, people have that amount — Like, imagine you are Facebook
and you benchmark, and you say, “the biggest social network
on earth has 100 million users.” You have reached 100 million users,
what do you do? You stop? “So, yeah, cool we can grow in everyday,
we are the leader.” No, you say, “let’s go to 500 million.
Let’s go to 1 billion. Let’s go for 1.8 billion.” And and even now let’s go for 6 billion. And you have some problem with India.
so that’s another issue. Around all the metrics that need the growth,
again, there is one Metric, that we love to call the Life Metrics. In 99% of the cases of the revenue,
a company is there to make money and you need to add your revenue, growing. Like, people that tell me, I focus on growth
not on my revenue, they they need to explain
where this sentence is coming from? Like, “yeah, I’m focusing on cakes,
so I don’t eat chocolates.” What? There is no logical link between both. Like the logical link is because you are growing,
that your revenue is growing. There is a natural relationship
between your revenue and your growth. First thing, because revenue
is the heart of your company. Second thing, more revenue, more means to grow So, at the moment growth costs.
So if you don’t have money to grow, you will not grow.
So there is this very organic relationship, that you need to understand.
So, I do that way. There is three level of metrics. There is, Vanity Metrics. Optimization Metrics. And, Life Metrics. Vanity Metrics are totally un-useful metrics. And they are all the metrics,
that doesn’t have any impact on your Life Metrics. A very simple example,
if you are a social network, the number of people that subscribe,
doesn’t have any impact, on if you are alive or not. Why? Because, what count on social network
is how many people you keep. Retention is much more important then acquisition. Because naturally on the social network,
if people use the social network, the social network, grows.
Because if someone do social interaction, of course, the number of users, grow. But, the number of users can grow without
social interaction, because they get tricked. So, the Vanity Metric will be,
number of users subscribed. So, Optimization Metric will be,
how many daily active users? How many users in my user base
are using the app everyday? For example, the company that,
I’m so amazed by is Facebook. Because Facebook is so tough as a company, that they decided to merge their Vanity Metric
and the Optimization Metric. Facebook never gave any number,
of the number of users, if it doesn’t mean, monthly active users. When Facebook say,
“we have reached 100 million people. “We have reached 200 million people,
we have reached 1 billion people.” It means that they have reached
the level of monthly active users, and no one inside the company
was able to know, how many people subscribed. Because there are so much fake accounts. Like, if Facebook wanted to look,
that they are growing faster than they are, it will just publish the Vanity Metrics
and it will be true. We will have that amount of subscribers
and people will be like. “Yeah. But there is a lot fake accounts.”
That’s true. And that is why, fake account criticism
never worked on Facebook. Because, Facebook never communicate
on anything else than the monthly active users, Because of that, you have this
Optimization Metrics, that is so important, because the Optimization Metrics
are, what will produce the Life Metrics. So, the Life Metrics is just a consequence,
that every Optimization Metrics works. So, the problem is that it’s a big job to build,
your Optimization Metrics dashboard. The most easy business
to do that is SaaS company. Every service subscription has a service company. They have incredible,
Software as a Service, sorry, Saas. All these companies
have so much documentation online, about every Optimization KPI,
and what to track to order to succeed. Every other business doesn’t have that.
For example, at TheFamily that am working, I’m trying to take every vertical, and build
a Optimization dashboard, that is standard. It’s so hard. We are working on that for a year,
and we have one board, that works. And we did not publish it yet because,
actually, after tests, it doesn’t work So, the problem is that it’s very complicated
to build, a standard dashboard around your company. So, it’s your job to understand,
what will be every Optimization at every step, that you need to achieve, to reach a level, where you can be sure
that what you’re doing, works. And you need to be, very focus on the time scale
you are measuring things, It should be not more than a week. The best thing will be a day,
but I know day it’s hard. Every day are not equal, and Every day, there is a lot of variation,
day from day. And it can be depressing to look at the day. Even if it’s depressing, it’s not bad. But, if you look at week, it works so well. I read that article this morning,
about how to read more books over the year. And you know, it’s all this life hack
bullshit thing, Like, yeah, “I tracked my life
and I did 10 minutes more reading”, blah blah. And the answer was so stupid.
It was like, “I read a page a day.” Because one page a day, it’s 365 pages
after a year, and, 365 pages when you read small books,
that’s a lot. It’s three or four books. So if you don’t read any books, it’s a good start. But you see, it’s stupid.
It doesn’t need to be very smart Like, if you do things on the short time frame, you will have big effect on the long-term. If you try to do big things, of a big time frame,
you will get depressed. Because, you will never be able to see,
if it works or doesn’t work. And, you will never understand,
if you’re succeeding are not. By the way, I need to say that very clearly, I should even have done a graph of that. When we are talking about growth rate,
week over week, we are talking about, absolute numbers. Not, cumulative numbers. You don’t imagine how many people
show us decks, And saying, “we grow 49% week over week.” You had 200 customers, on first week. And you have 212 customers on last week, Yeah, but we went from zero to 10,000.
No, no, no, no. You don’t get it. That’s not growth rate. That’s cumulative rate. In cumulative numbers, every company goes up. Because every week you have more numbers.
Even if it’s slower, it will go up. Because A+B equals more than A alone.
So.. It’s something, you have to understand
that the growth is about the next week, you do more in absolute numbers,
than the week before. And when we say that you have to grow
at 10% a week, for example, It means that, if you had 100 customers
in the first week, you should have 110.
Meaning that the total number of users will be 210. Meaning that in cumulative growth,
that’s more than 110%. You see where I’m going?
So we are talking about the growth rate, not relative numbers. So, the only way to do that is to have
a very clear ambition, about where you want to go,
and you need to be very clear inside the team about the level of ambition.
And it works two way around. Meaning that everybody in your team
should be depressed, if you don’t reach your growth level. And I don’t feel like —
The problem with most entrepreneurs, is that they don’t celebrate the right thing, and it’s very important to learn,
what to celebrate inside your company. But in the same time,
we don’t share the right desperation. Like, for example, you will tell the company
at TheFamily that, you should grow at 10% a week to make it easy. Okay, 10% a week is by the way, a lot. Or the more 5 or 7, but let’s say 10%. And the company will not reach that level, the first common intuition
to every good founders, will be to don’t tell anyone.
Because they are nice. They don’t want to send an email
and say we failed, as a team. But that’s exactly what you should do. And it’s hard, but one of the thing
as an entrepreneur, you need to learn is to communicate every news,
in a very transparent way internally. So, for example, one of the advice that we give
to every entrepreneur: is to do an automatic email with growth in Slack,
all my email. So you will put a software like, for example,
you can do that in Google Analytics. You can do that in Stripe,
you can do that in PayPal. That will just send the numbers with the result,
and you cannot stop it. You cannot be, “oh my God, this week is not bad,
I will try to put a bag.” It should be automatic and everyone in the team
should receive it. And it will be kind of collective acknowledgment
of the performance of the company. And it works in both ways. There is this article
in New York Times that I love. It’s called,
“when you lose, you should not have ice cream.”It’s a writer in New York Times that says,
when he was a kid, and he was playing baseball,
he got an ice cream, when he win. And if you lose a match,
it never got an ice cream. And now you have got an ice cream because you win and you got an ice cream because you lose. Because it’s a way to cheer you up.
Because you lose a match. Because what is important is not winning,
it’s to participate. So, this fucking conservative guy was like,
wanted to have startup mindset with children. So, as soon as possible,
“you are a loser. You lose the match.” Okay, I’m not saying that, that’s the way,
we should raise our children. But I’m saying that at least,
if we don’t raise children like that anymore, you should not raise your employee,
and your startup, that way. You should be harsh. You should be harsh with yourself.
You should be harsh with your team. And you should be very clear
about what success means and what failure means. And it should be external KPI driven,
and it should be week over week. If not, people will be surprised. Because one day you will come and say,
“oh, we failed or fund raising.” And every employee will be like,
“why? Why did we fail?” Because you are bad at pitch, because blah blah.
And it will create trouble that are unnecessary. If everyone inside the team is aware,
that something is not going well. They will work hard to make it well. And by the way we will work harder than you
most of the time, because they don’t have your pressure. For a founder, the company that fails,
is a lot of pressure. For most employees is,
“yeah, it’s sad for the guy, but, “but I have a salary,
and I will do something else in my life.” So it’s not such a big deal.
So they are more free to find solutions, to give suggestions, to go far. So, that’s one of a very good moment
to talk about one of my favorite story. It’s called Iliad. So who has read the Iliad by the way? Okay, cool. So for the one that did not read it,
it’s a very simple story. You have a very beautiful girl,
that get in love for a nice guy. And the guy took the girl, back to his home. So the husband of the girl is unhappy, of course. So he built a big army
and he wants to go and fight back, against the guy that took his woman. And, and it’s called Troy war. There is a very good movie, by the way,
with Brad Pitt inside, and Brad Pitt is awesome.
So only for that you can watch it. As specially in this movie,
he has like that kind of very violent charm, and it is a very impressive movie. I know a lot of people think,
that is not historically accurate, but that’s the point with fiction book,
is that you can do whatever you want, because it’s not history. And in that movie, that book, there is one moment that have been an obsession in my life. It’s called Achilles dilemma. So what is Achilles dilemma? Achilles doesn’t want to go to the war. Because he has in nice girlfriend, and he is living in a city where,
there is nice and fresh water, sunlight, beach and he is like,
“why on earth, I’ll go to the war?” So, like every good boy on earth,
he goes and talks to his mum. And asks his mum,
“what should I do mum?” Like, should I go to the war or should I not? And the mum says, it’s very easy, simple choice. You need to choose between glory or happiness. You cannot have both. So if you are on the happiness path, stay here. You will have children.
Your children will love you Your grandchildren will respect you. Your grand grandchildren,
will somehow know who you are. But after that, no one will remember you. If you go to the war, it will be hard. You will not have children. You will die there my son
and you will not come back. But one day Oussama will speak on stage about you. And that will be, glory. So, that dilemma, is the dilemma that anyone,
that wants to do something with his life, have. And I think, people don’t think enough
about the dilemma. Because, most of the people, choose between
Glory or Happiness by default. We don’t really think about it, and we are like: “Yea, I should do a startup,
because that’s what people do.” And by the way, if you want to have psychological difference between
entrepreneurs and average people, It’s called the restaurant test. So what is a restaurant test? You take four people in a restaurant,
and you ask the first three people, to order the same thing. After that, the fourth people
choose something else in his mind. Average people will change their choice
to the choice made by the first three. Because they don’t want to be the outliners. They will be like,
“Yeah, I want the pasta.” Stake? Stake? Stake?
“Okay, yeah. Give me a stake.” And if you ask these people, if they have enjoyed
their meal or not, after being tricked like that? 95% of the people will say,
“yeah, I should have taken the pasta.” If you take entrepreneurs
and do exactly the same experiment, and I’m talking about successful entrepreneurs And you take them,
and you put 10 people that take something, and they will be, “yes stake please.” Because they are trained to never give a fuck
of what others think. And if you look about how people
deal with their life. It’s always like that. For example, you ask people,
where they want to live? And they will say, “oh, I want a neighborhood
with a lot of shops and restaurants “and lot of life and families and young people.” And after you tell them,
“are you are rich or poor?” So rich, they will go to live in the west of Paris
where there is nothing. And poor will live in east of Paris,
wherever is that. But none of them will have chosen. Why?
Because people don’t go in the 16th arrondissement, or Chelsea in London,
or Upper West side in New York. Because we want to live there. It’s because it’s where people like them live. Even if they are unhappy with that. Because most of the people,
they don’t want that kind of ambiance around them So, what happened with entrepreneurship
is that most of people, don’t realize
that they have this dilemma to solve. And they have to make the decision. So why am talking about that? I’m talking about that,
because everything I’m talking about, in every session of Free Entrepreneur School, and everything we do at TheFamily,
is about glory. We don’t care that people are happy,
and we don’t care if our entrepreneurs are fine. Because that’s the deal. But thanks to God,
that’s not a choice that everyone should make. Like there are so many good opportunities
to do a startup that don’t grow like hell. I told you in a very manipulative way
that, startup=Growth. But startups that are growing, equal growth. Like, some people can do service startup. Some people can be entrepreneurs
in lifestyle business. Like, if you look at every lifestyle business
entrepreneur, I know they are all happy. Most of the time they are stupid and happy. It goes well together. Why?
Because they do a nice living. They can do whatever they want. They have freedom. They have a lot of joy. Every pleasure they need
is the pleasure they have. And they are never unsatisfied
by what they are doing. Because, they don’t care about glory. For example, I have a friend,
he wrote a book about EverNote. And he sold 7 million of them. And, every book is $10 online. I’ll let you do the maths. No one here knows him
and he will kill me if I give his name. Because he doesn’t care. He did not do that book
to become an archi millionaire. He did that book, because
he wanted to travel and go around the world, and do kitesurf and meet girls. He needs nothing else in his life. So, think about that. Think about
which kind of entrepreneurs you want to be? And make a decision.
Because the problem is, it’s a one-way ticket. Because if you want glory, it’s really hard
to come back to something simpler. Because we have the egos.
Because we have psychological drama. Because we are humans and we don’t like
to say that we are losing the game. So this is why you should think about that.
And think about everything, I told you until that moment that is half of the session. And think like, “okay, that’s fine.” But all of that is true,
if you want to build very big company. But if you just want to build
a nice service business, that makes a living, nothing I said, apply. It can take the opposite
of everything I have said. And you will work. Because if you want to do the happiness choice, there are thousand of things to do in our world. And by the way, if you choose the glory word,
and if you choose the glory path and you want to build that kind of startup,
you should be paranoid. And you should be aware that it will be hard. And it will be hard in a sense
that you cannot realize, because you will do can fail at any moment. Like look Zenefits guy,
you went from being no one, to to being one of the most
successful entrepreneurs in Silicon Valley, to be under federal investigation. And maybe facing 10 years of jail. And 10 years of jail,
not because you did something deeply wrong, no, 10 years of jail because,
you have a fucking monopoly around insurance, that wants you dead. And because everyone around you
in your team, wants you dead too, Because, it’s easier to get one killed,
than everyone. They will put you on the sign and say,
“yeah, that’s him. Beat him. Go.” So, think about that. It’s not an easy choice, and it’s not something you should take light. You should be very, very thoughtful about that. And if you want to take that path,
and I think it’s a great path to take, because the problem with happiness
is that for a lot of people, The happiness path is boring. Like, for example, if you take someone like me, I own nothing. I don’t like anything. Sometime I think like, “yeah if I was more rich.” Yeah, I will do the same. Like, I don’t see any influence on my life
from money, for a very long time. Because I can eat whatever I want to eat. And I can travel wherever I want to travel. And I can live, wherever I want to live. So, what do you want more? But some people, they have pleasure that kind. I have friends that buy things.
And will show you the things that they buy. And me, if I can have less things, I’m happier. You know, every year I drop things. To the trash or I give it. And I hate when people give me gift. Because after, you feel bit complexed
to put it in the trash. Because it’s a gift. But I hate that. All of my friends know that they should
pay me experience, not gift. But again, I’m not saying that is universal. If anyone come and tell you that what he’s saying,
is universal, or if anyone come and tell you, that’s
the truth about entrepreneurship or startups He is a liar. Because, there is as much kind of entrepreneurs, than there is kind of path of life and ambition And the kind of path of life and ambition,
that TheFamily is talking about. It’s exactly like if we —
we can take a sport analogy, works well. Let’s say you want to be an Olympic champion. So, kind of training, you need,
will not be the kind of training, you need if you want to do some sport to be healthy. And that will not be kind of training, you need
if you’re doing sport as leisure. You see? Like, you can be in leisure,
it can be for good health, or it can be because you want to be a champion. And by the way, if I ask the question,
is sport good for health is not? Everyone will tell me that sport is good. But the true answer is, sport is good, Unless, you are top sport player. Because for every top spot player,
sport is horrible. They get injuries.
They got a level of burnout and physical level, that it takes years to come back from. For example, I was in previous life
dating someone that was, an Opera dancer. You have to watch their feet,
to understand what pain means. Like, you have people that put themselves
in a situation to give a performance, for few years in their life. They broke every single muscle
and bones in their feet. To a level that is —
and they start at a very young, by the way. Because that’s the only way to achieve greatness. So, when you are with these kind of people,
you understand that there is a price for that. And this is why everything
we have around entrepreneurship is so depressing. Because we are living in a moment, where
because entrepreneurship is becoming fashionable, we tell you about all these glory stories. We have never telling you
about the disclaimers that come down too. And I think here the majority of people,
that was to live that kind of entrepreneurship, will never be able to suffer,
kind of where you need to suffer to achieve that. And, it’s not the question of money. By the way, if you are living
in the Silicon Valley, and you want to be rich. You know, what’s the level of INET
worth individual? 20 million dollar. After $20 million in your bank account,
there is no difference of a single dollar, on your lifestyle. Because there is nothing you can buy,
of course, you can buy ten cars. Because you are very rich.
But at the end you can use car, one by one, so. It doesn’t have any real influence
and by the way, if you have $20 million, you can rent any car you want. If you want to change car everyday,
you can buy a membership in a Toy Club and, and get car every day. So, INET
worth individual level is $20 million in cash, we add the price of the house you live in. So, $20 million in cash. What is the easiest way
to get $20 million plus in Silicon Valley? It’s not to create a startup.
Is to be employee 20. Not even in the first employee, because
employee 20 is a very strange statistical point. Because employee 20 is a first
and people that get hired, that is not a friend. Because in most startups,
the first 10, 15, 20 people are friends. And 20 is a level of growth where
you start to have companies, that can hire people, they don’t know. Because, they are growing that big. And employee 20 in Silicon Valley,
in average for an executive position, will do between 0.8% to 3% equity. And, that level of amount of equity,
if the start of a successful is more than enough, to do money. And by the way, employee 1000 at Facebook, did more money today on IPO,
than 75% of entrepreneurs that did not exist in Silicon Valley. I’m not talking about 75% of entrepreneurs
that have tried, I’m talking about the top 10%,
that did not exist. Employee 1000, do you think there is any glory
about being employee 1000 in a company? Like, it’s random.
Like, there was light and you go in. And you wait and boom, there is an IPO
and you get money. So, don’t fool yourself on that kind of question. If you want to be an entrepreneur,
because you want to do money, Do lifestyle business, do service company.
That’s where the money is. But if you want to do a company,
because you are looking for glory Think about, everything you learnt here.
Thank you. [Applause] I did not quite get the difference between
Optimization Metrics and Life Metrics. Life Metrics is where, there is only one. And, in 99% of cases, revenue. So the Life Metrics shows you,
if your company is alive or not. Optimization Metrics
is every metrics inside your flow, that gets you to the point of the Life Metrics. So, let’s take an example,
you are doing a social network, okay? Everyone is using a social network,
so it’s kind of a universal example. Your Vanity Metrics will be acquisition of users. Your first Optimization Metric will be,
how much of these users you acquire, will be converted in registered users. And the second Optimization Metric will be,
how many percent of that users become for example, daily active users. And the third Optimization Metric will be,
how many of these daily users, will use, how many percent of features,
that are present on the website? At any feature
that is not in use should be deleted. by the way, we talk a lot in a product
about what to have, but there is also a lot to take off. And what will happen is that,
if you have all this process, You will have enough active users, to sell ads. So, you will have a second flow
of Optimization Metrics, It will be, how many advertisers
I need to talk to, How much they are ready to pay by users. And how much they will convert. So all this Optimization Metrics,
will create a cycle User, advertiser, that end up into
the Life Metrics. That is doing, boom boom. Because, it will be the revenue. So the more you have users,
easier it will be to have advertiser. More you have advertiser,
less you will have user. So, it creates a second tension,
that you cannot do anything, so you need to keep track your metrics
and it will generate revenue, yeah. -Every week?
-Every week. Every week. Because, it’s week over week. You don’t build an empire, month over month
or year over year. You do it week over week. That is the only way to know,
if you are doing well or not. And what happens is, that if your Life Metrics
is not growing week over week, It’s mean that something is broken
in one of the flow. And so, your job is to investigate,
what is broken. It’s a painful process. For example, I think, one place
where you want to go to the work, to learn that is Rocket Internet. I think, the company that scaled that to a level
is and learn that is Rocket Internet. So, Rocket Internet was the people,
that don’t know them, they copycat ideas. And just look at what works in the Silicon Valley
and replicate around the world. So they take out the idea generation part, but they keep the execution part. And inside the execution part,
there is this question of, Are we doing well, or not? And because, what you will do is, you will look
at KPI everyday at Rocket And if one day, it’s not doing well, you will
have the boss of Rocket can’t do and say, why? Why? Why? Why? And you will answer questions during the hours,
just with one guy that would say, okay, but why? If you want to investigate,
why something doesn’t work in the company? You should play that game.
It’s a very easy management game. You you want that someone to his job, better Just ask, why? “Okay, you did that. Why?” He will give an answer and you will say, “why?” And, he will give an answer, and you will say,
“why?” And he will reach a point where he will, realize that something is broken, or something
is not working, and you can take decision. So, it’s as easy as that. But again, you need violence.
You need intensity, it’s not a joke. If you look at a startup at Family
that works well, they are so intense. By the way, if you want to work to a startup. And a lot of people ask us the question,
“is the startup good or bad?” There is one single point to know,
if a startup is good or not. You go in the office and you feel the energy. Like, I know you will not wait,
that answer from me, but it’s true. Because in companies that are doing well, you feel that everyone is violent
and something is happening And by the way, another clue will be to look at, if the startup
has bigger office, when they are team or not. Every good startup at TheFamily is always late
on the office side. Like, for example, each is to have 35 employees, in 80 meter square. Like, do you think we can work with 35 people
in 80 meter square? Of course not. But they do it very well. We have a company that had this brilliant idea, It’s called —
so we are at standing desk. And behind the standing desk,
there was a sitting desk. On the other side, so we can save space. So, on the same matter,
you have one guy that was like that. And one guy was down. We have incredible view, all day long. But, it’s not comfortable to do that,
it doesn’t look professional, but that’s what makes startups incredible. It’s because they are making things,
that we should not do. Can you explain, what’s the difference
between traction and growth? There is no difference.
It’s just another way to say growth. But I love the word, traction.
Because in English you understand traction. Because the idea traction is that,
you get track, like that, traction. So the idea that growth is as much internal
with your own effort, then it’s external in a sense
that the market will take you with him. So, that’s why I love the word, traction,
but in French people understand by traction, the fact that is going fast.
But it’s the most subtle idea that’s why, That’s why people use
the word traction in English. I wanted to talk about
Vanity Metrics and Optimization Metrics, how can we measure ROI,
by measuring these metrics. Return on Investment is the worst way, to look at any metrics in your startup. Because Return on Investment,
is a benchmarking tool. Because, what matters is not so much,
Return on Investment, And the level on Return on Investment. What matters is that you are growing. And there is no price for that. Return on Investment is a benchmarking tool,
because — Let’s talk about acquisition. Let’s say, you have 10 level of acquisition And you will measure Return on Investment
on every acquisition thing. Why you will do that? You will do that because
you will say, if ROI is not high enough. I will kill them and if Return on Investment
is high enough, I’ll do them. My stupid advice will be,
as much as you can, just do them all, because we will not bring you the same
kind of growth and same kind of users. So that’s why, Return on Investment is a tool
for a very mature startup. That start to optimize, the way they do things. But at the beginning, you should not
optimize things, you should just do it. And you should just, be aware
that if you don’t do everything, you will end up doing nothing.
Because you will be in a situation where, you are not sure that,
what you’re doing is hard enough. Of course, that doesn’t come to say that, you should do everything to a point,
where you are so unfocused that nothing brings any Return on Investment. But the Return on Investment part is quite tricky
because it’s not important at the beginning. What is important at beginning,
is that your Life Metric is growing relatively, in absolute numbers, week over week. Everything else is not so important. Do you think that it’s good to measure
the cost of acquisition for the startups? -That translates in ROI as well.
-So, yes and no. That’s always the most horrible question,
because, It’s not universally true,
it’s not universally wrong. If you have a profitable business, The cost of acquisition doesn’t matter. And if you have profitable unit economics The cost of acquisition doesn’t matter.
Doesn’t matter at all. Because if you say,
it cost me X and I’m making Y, and Y is twice X, Nobody cares.
But you will reach a point where, you will start to need to create profits
and optimize, and you will become a real company. And at that moment, the cost of acquisition
will be the most important thing. Because what will matter
at that point will not be growth. But how much money you make. The problem with that is that,
we are entering a world, where where so many people have been,
so stupid about that, that everyone now is kind in a fear. Like, if you look at the ambiance
in Venture capital right now, Everyone is going on hold,
and everyone is kind of scared. And I was reading this morning,
this article that say: “Yeah, growth at any price is not sustainable.” Yeah. No kidding. You mean when you spend five times more
than what you get, you end up bankrupt Oh, thank you. At least
you did the Stanford MBA to discover that. So, of course, we are building real companies. When I say, cost of acquisition doesn’t matter. I say, cost of acquisition doesn’t matter
until it matters. Because of course you always
reach a point where, it’s so obviously big that it doesn’t make sense. But, I see companies at TheFamily,
that have stupid investors and they optimize cost of acquisition
to make 10% more profit at the end of the year. And so they are losing growth
and that will be stupid. That will be stupid because they will not be
at the level in terms of market share, where it should be at the end of the year. Because, they try to play small. So playing too big, can be hurtful.
Playing too small, can be hurtful. And so you need to be in a kind of middle.
It is so bad answer. At some point, founders deserve their equity. When you take 30% of a company,
it’s because that at certain point, you do things that no one can do. And understanding when you can play
and when you cannot, when you can push and when you cannot,
that’s the heart of entrepreneurship. That’s not a science.
That’s where as a entrepreneur, you need to learn to do things.
And to give you a good image, it’s exactly the same thing when you cook.
You have two kind of people that cook. You have, the recipe followers,
that measure everything And you will tell them, Yeah, put that amount of chocolate, and that amount of things, blah blah blah.
And they will follow the recipe, and you have people that feel it. I don’t know any chef, that doesn’t feel it. I don’t know any good chef that doesn’t feel it. I know a lot of amateurs that follow recipe. But when you become an artist,
and when you become a great chef. You are like,
“yeah pfft. Yeah, a little bit more.” And that’s what makes incredible chef.
Same thing with entrepreneurs. At beginning you try to play with rules. For example, I say to some entrepreneurs
things that are stupid like, Your acquisition cost will be a third
of your revenue. Why third?
Because it looks good. Yeah, third. Yeah. If it’s two third, that can be useful
for something else. So, That’s not bad. But the best company at TheFamily
can have things like, half or 10% or 95%. But they have their own logic, and you have
an entrepreneur that deserves his equity. Because at the moment it’s your job, to understand what you should do more
or what should you do less. And by the way, there is no other way,
to learn that than try. And be dumb, and do mistakes. And you don’t imagine like how many — When I see, only on TheFamily, how many mistakes
I’ve made, with entrepreneurs in two years, It’s horrible. Because that’s the only way
to learn and of course it’s scary. But you need to overcome that.
You have no other choice. I just wanted to go back
to the difference between traction and growth, Because, actually, to my understanding
traction can actually come without revenue. Traction can be having a lot of users
in a platform. -Yeah. That’s true.
-Just making sure, My understanding is that you don’t have such —
you don’t really believe in companies that, work on attracting a lot of users
and monetizing it later. Facebook did it, but of course,
not all of us are Facebook. -I don’t know, what are your thoughts about this?
-My thought about that is again, that kind of subtle language difference
are more confusing than bringing anything clear. Yeah. Outside the language. Yeah. So outside the language, I don’t believe
that there is a thing that is called traction That is separated from growth. Because there
is a rational link between growth and traction. And there is way too much vocabulary confusion. For example, you took Facebook as an example. Facebook, is a social network
with the biggest revenue growth ever, from day one The problem is that, when you are doing
20 million revenue on second year. And you spent 200 million in server cost. It doesn’t seem that you are, doing revenue growth
and focusing on your revenue. Because of course in the grand scheme of things,
everything you do as a company, revenue has small part. But Facebook ad business developed on day first. And they had contract with advertising agency
on the first, and they use that money, like everything.
By the way, if you look at Facebook the day it become a cash positive,
there was a celebration inside the company. It’s one of the few milestone that
have been celebrated internally and outside, at some point,
like we became something self sustainable, So now we can live for ever. Because, that’s what it is about. Traction should always be linked
at some point to your revenue strategy. Even if you can be smart because you have capital. Even if you can become a small link,
instead of a big link, because you have fund raising capabilities. So, that’s how you should manage it. But, traction is really coming down to the fact, that everything is growing so fast, that the metrics and the numbers,
inside your company are amazing. That’s what is traction about.
It’s that, you are different from everyone else. Because something
that doesn’t seem possible is happening. You seem to describe, Glory about being famous. And I think, maybe we can look something
with reasons to be famous. Yes. Sorry for that. Because it’s just a shortcut. I think glory is about doing things that matter. That’s what glory is about In the definition of matters,
depends a lot on an industry to another industry. And doing thing that matter
is not being about mainstream famous. But, at some point,
if you do something that matters, you will always
have a kind of a peer recognition, somehow. Look, Slack. Slack is killing email,
changing the way we work, transforming enterprise.
But if you talk about Slack to your grandmother, she will have no clue of who the guy
of doing Slack is. And I think, here most of the people use Slack,
and don’t know the name of the founder. So there is a difference —
when I about glory, I’m not talking about mainstream celebrity. I’m talking about the fact that you do something
that matters. So people recognize it as that. For example, if I take my example back of writing a toolkit tips of Evernote, no one can recognize that as something glorious. Like, it basically copy and paste
Evernote user manual. But, the better design that it bought for $200. And sell it like hell. You can be impressed by tricks and tips but, no one will be like,
“oh my God. That guy matters.” If you are not nice, you will say,
“he has been lucky.” If you are nice, you will say, “He’s smart.” But, you will never say, it matters. Because it doesn’t matter. The you think it is a life choice
or we can say it for 10 years or something? Good question, no idea. Yes, sure. I see my life in act. And, I think it, — Look we live, now at average here,
people will live for 80 years. And some of us will reach maybe 120, 130. That’s the situation here.
And we’re still living, in exactly the same way than when
we were living 40 years. By the way, you want the crazy numbers?
Someone who is 40 years old in 1950, was as old as someone that is 75 years old,
today, in term of body shape. And, in term of energy and things like that. And now you have some people at 75, That are fucking active. And that has so much energy,
and doing so much things. You cannot still live that way. So, that’s why, for example,
I decided to see my life in ten years time period. 10 to 20. 20 to 30. 30 to 40. 40 to 50 And I like to tell myself every 10 years, I will ask, what will be my view
of that 10 years and my activity. Doesn’t mean that I’ll do something,
but at least I’ll have the same goal. One last question,
do you think founder need to agree on this, -and equity can, deal with this.
-Oh, yeah. Oh yeah, if founders are not align around that,
you are going to a big mess. It’s exactly like, I dunno, I don’t know what’s important for people in life. Let’s say you are very, very,
very, very religious. And you are dating someone that is not at all. It will create trouble for sure. I know it will look politically correct
to say that, These people will leave happy together.
But it’s bullshit. Or it means that the people that are religious
is not serious about their religion. That can be true too. Or, I dunno. There are things that are obvious like, Most of discrimination — Most of the time, we don’t look
at the discrimination the right way. Because we never understand the underlying
message that is behind discrimination. This is why we are so bad,
at fighting discrimination. People see discrimination now
as a moral stance and it is. They say, it’s bad. It’s back to discriminate.
Let’s be diverse. And after, when you want to be diverse,
you understand every problem that it creates. But if you understand
the underlining things behind, you will understand, that it takes a very, a lot
of hard-working society, to stop discrimination. Same thing with founders. You have to understand
that there is a lot of underlining things, that will push your company in a sense, on other. And that is one of the most fundamental one. Because, if someone wants happiness,
and the other one wants glory, it will not go very far. Yeah. You say that in 99% of the cases,
your Life Metrics is revenue. What’s the 1%? -Sorry.
-No no. No problem. The problem is that 1% is 1000Ks. So, very easy.
Very certain kind of companies, that have such a product cycle,
that it make him possible to sell anything. Tesla Motors.
If Tesla Motors, Life Metrics was revenue they will have been dead for a long time.
Why? Because it have been an R&D company for 10 years. And, when you are a R&D company,
Your Life Metrics, is your capability to reach, new milestone of R&D. So, for Tesla the Life Metrics is: is it possible to build a car, that drives
on long-distance with electrical battery? Is it possible to build electrical battery? Is it possible to build factories, that make electrical batteries
and commodities blah blah blah. So, the 1% case. My advice very often is, “never do that kind
of company as a first-time startup.” You have to be smart about that. You have to understand that as entrepreneur,
you have a curriculum like any employee. And your job is to write that curriculum. Elon Musk, will never have been Elon Musk,
starting to be Elon Musk. He did the first company
that got sold for 200 million. A second one that got sold for 1.6 million. And then he became, Elon Musk. There is a very good book about that. It’s a book that made me an entrepreneur. It’s a science fiction book. It’s called,
The Man That Wants to Sell the MoonAnd it’s a funny story,
because first chapter starts, as the guy that explains to his wife,
that he has sold everything he has. Because he achieved his lifetime goal. And the wife is so in shock.
She’s like, “did you sell our house in Lakhom?” He is like, “yeah I sold it.”
And, “did you sell your factory?” “Yeah, sold it”. “And the restaurant business?”
“Yeah, I sold it.” “And, everything?”
“Yeah, I sold it.” By the way, you know, the maid,
I have fired her, because I don’t have enough money
to pay the maid anymore. And, the wife is like,
“what are you saying? “You are saying,
that I will do the cleaning myself?” “Yeah, because we are out of money.”
“But what the fuck did you do with the money?” “I bought the moon.” Because his goal
was to build a city on moon, and that was his lifetime goal.
And he did everything in his life, with only that goal in mind,
and after the book come back 30 years 30 years back.
And he is a small employee in a company, and he is convincing his boss
to open his first venture. And to finance his venture, And after you follow him, all way long,
until the day, you go back to the chapter one. and after, every other book is about
how he build the moon. And that’s the book that inspired Elon Musk too. He hit told in an interview that it’s a book — Robert A. Heinlein, I think, the author. But it’s a man that wanted to sell the moon. And it really shows like, how being ambitious,
you need a step-by-step plan. Because, you cannot come and say,
I want a billion-dollar to do something impossible You need to personal track record first
to achieve that. So, I think people over estimate that. I think, people don’t try to get quick win
as entrepreneurs. If it’s your first time thing,
just do a quick win. Just do something that, build your curriculum. And if it’s not a lifetime thing, just sell it. Some people are asking themselves,
“should I sell or should I not sell?” The question is,
are you doing something that is your life are not? If it’s not your life,
just sell and do something else. Because, you know what will happen. And at least you build a track record. And if look the game you’re playing,
it’s a very funny game. Because, — so 100 entrepreneurs. You will have 15 of them
that would raise money with angel. On that you will have,
five of them that will raise money with VC. And on that you will have between one to two,
depending if it’s a good year or bad year That will sell their company. So, it shows you, how to build your curriculum. Are you doing something with enough traction? Are you VC backed? And it’s like being in sport team. If you have an index as a backer,
you will not be perceived the same way, when if you have.. the Provence-Côte d’Azur. You can fund raise exactly the same amount
you will not have the same curriculum. One million with index,
is not the same curriculum as an entrepreneur, than one million with random guy
who had put money in random regional company. Last question?
That was the last question? Thank you.