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From: Collin Stewart <predictablerevenue-newsletter@mail.beehiiv.com>
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Subject: the only thing(s) that matter
Reply-To: Collin Stewart <collin@predictablerevenue.com>
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To: "andrew@sterlingcal.com" <andrew@sterlingcal.com>

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Good morning Andrew,=20

I handed in the shitty first draft of the manuscript this week! It topped o=
ut at 56k words and I know there are more to be added but I=E2=80=99m reall=
y happy with the progress of the core ideas. What happens now is called the=
 substantive edit where they focus on the big-picture elements of the book,=
 such as structure, content, flow, style, and organization.=20

In preparation for submitting the draft I was reviewing and rereading some =
of my early chapters and realized that something was missing from the intro=
 or first chapter. The core idea of the book is that there are two things t=
hat matter, finding strong product market fit and then building a scalable =
sales engine to capture the unmet demand you found. What was missing was th=
e emphasis on the sales engine so I=E2=80=99ve added a few stories to reinf=
orce that point.=20

How do these two stories support the point? Let me know if they resonate or=
 could use something else.=20

Here=E2=80=99s the tl;dr:

* It=E2=80=99s necessary to rely on the founder for everything for your fir=
st $1m

* At some point you=E2=80=99re going to need to work on the business instea=
d of in it=C2=A0

* Finding a way to profitably scale your customer acquisition engine is the=
 best way to free up your time=20

Here=E2=80=99s the piece I=E2=80=99m adding to the Intro:=20

In the summer of 2013, after 18 months and 1 customer, I made a promise to =
my co-founders. I wouldn=E2=80=99t ask them to write another line of code u=
ntil we had 5 paying customers. I had noticed that sales leaders with SDRs =
seemed to have the biggest pain and I wanted to validate it. I worked out a=
 way to test it manually but I needed a break so I booked a surf trip with =
my future wife to Costa Rica. I figured that I could take a few months to i=
nterview people, run a few tests, and then take some time to recover on a b=
each while my co-founders, Preston and Francesco, built an MVP. Unfortunate=
ly for my future wife and surf skills, it didn=E2=80=99t work out quite tha=
t way.=C2=A0

I was amazed by what I could see when I finally pulled my head out of my as=
s and started listening to people. The people I interviewed loved the insig=
ht but they hated my solution to their problem. My interviews were with sal=
es leaders and Sales Development Reps (SDRs) and they all were struggling w=
ith translating their playbooks into something that Salesforce could help t=
hem execute in 2013. This was the exact problem we had been trying to solve=
 for the past 18 months but had missed a couple pieces of critical informat=
ion. Instead of a CRM, we needed to work alongside Salesforce. Instead of s=
olving the problem for _every_ CRM user, we needed to focus on solving it f=
or SDRs. I had been so close to a breakthrough for so long but I couldn=E2=
=80=99t see it until I started really listening. I was directionally correc=
t but off by just enough to still be wrong.

I worked out how to test the idea with a wizard of oz style beta by cobblin=
g together a bunch of Google Sheets scripts I copy and pasted from Stackove=
rflow. A wizard of oz beta is when you can get to the rough outcome that th=
e future software will accomplish with off the shelf tools and a bunch of e=
lbow grease. You also get to shout =E2=80=9Cpay no attention to the man beh=
ind the curtain!=E2=80=9D daily which is the fun part. Everything was so ma=
nual that, when I did the math, I figured I could only handle 5 customers. =
My goal was to find 5 people that would give me $500 for me to act as an em=
ail only SDR for a month. I wanted to prove that people would pay for this =
type of automation and that we could generate serious results using the met=
hodology. After 5 meetings I walked away with 7 customers. Two of the sales=
 leaders were so adamant that we had to help their friend's company too and=
 I couldn=E2=80=99t resist saying yes. When you=E2=80=99ve been pushing a b=
ig rock up a hill for 18 months getting a response like this was intoxicati=
ng. I didn=E2=80=99t realize this rock would start picking up speed as it r=
olled down the hill.=C2=A0

The manual beta was chaotic but it worked. It worked really well. After we =
finished, one of our early customers, James Clift, asked for the same but 1=
0x bigger. James was the guy who recommended I read Predictable Revenue in =
the first place so I didn=E2=80=99t want to let him down. I also didn=E2=80=
=99t want to take his money and not deliver on so I managed to talk him dow=
n to 5x.=C2=A0

The beta was a turning point for us. Instead of hearing =E2=80=9Cthat=E2=80=
=99s a smart idea=E2=80=9D we were hearing =E2=80=9Cohhhh, you need to talk=
 to Michelle about this=E2=80=9D. I managed to pull off 50 interviews in a =
very short period, mostly powered by unprompted referrals. What this experi=
ence taught me was that while sales skills are important, they aren=E2=80=
=99t the first thing that=E2=80=99s important. We ended up canceling our Co=
sta Rica trip because I didn=E2=80=99t want to lose the momentum. We were f=
inally working on something that people cared about and that was more excit=
ing than a beach.=C2=A0

My sales skills hadn=E2=80=99t improved but suddenly my close rate had shot=
 up. The thing that had changed was our idea. It was the same insight but w=
e had narrowed our focus and changed how we were going to solve it to align=
 with what the market wanted.=C2=A0

This experience taught me what should have been obvious, if you=E2=80=99re =
trying to sell something that people don=E2=80=99t want, it doesn=E2=80=99t=
 matter how good of a salesperson you are. The inverse is also true. When y=
ou=E2=80=99re trying to solve a problem that everyone cares about, it doesn=
=E2=80=99t matter how good of a salesperson you are. The only thing that ma=
tters is finding and solving an unmet need that people place a high value o=
n solving.=C2=A0

When we pivoted from voltageCRM to [Carb.io](https://Carb.io) we finally fo=
und product market fit. But what was the precise moment when we =E2=80=9Cfo=
und=E2=80=9D it? Was it when we decided to change our focus? When a custome=
r paid for the janky beta? When we finally built an MVP?=C2=A0

It was when money changed hands. A financial transaction is what converted =
our hypothetical research project into something real. If there=E2=80=99s n=
o money changing hands, there is no difference between your customer develo=
pment process and a college research project. Both are just collecting info=
rmation. We didn=E2=80=99t charge a crazy amount to start but it wasn=E2=80=
=99t anywhere close to free. Early beta users were paying in the neighborho=
od of $500 a month. If all I ever did was interview sales leaders and never=
 asked any of them for money I wouldn=E2=80=99t have known exactly how much=
 demand there was for what we were doing. By having an offer, even a janky =
one, we were able to learn that people really wanted to solve the problem w=
e were working on.=C2=A0

## Ok, There Are Really Two Things That Matter

[Carb.io](https://Carb.io) scaled from $0 - $1m in a few months but plateau=
ed because we couldn=E2=80=99t outrun our churn. Customers initially loved =
us but when an email prospecting tool takes a week from clicking Send to th=
e actual email getting sent, you=E2=80=99re going to have problems. Interes=
tingly, at the same time as Carb was plateauing, our services business was =
growing rapidly. We were helping people run cold email campaigns where cust=
omers only cared about results. When you don=E2=80=99t have to worry about =
timing or UI, Carb did a good enough job to help us deliver on that promise=
 extremely well.=C2=A0

Our services revenue quickly outgrew our SaaS revenue and we nearly doubled=
 over the next year. When we were striving for the mythical $83333 monthly =
recurring revenue ($1m annually) I remember thinking that once we hit that =
number, everything would be gravy. I=E2=80=99d have more time to focus on b=
uilding the company and we=E2=80=99d have more resources to invest in hirin=
g folks. A funny thing happened when we reached that milestone=E2=80=A6 abs=
olutely nothing. The only difference was the number.=C2=A0

I hung onto the sales role until we hit around $1m ARR but I was still acti=
vely involved in our sales and marketing team. What didn=E2=80=99t make sen=
se to me was that we hired a great salesperson (more experience, great clos=
er, nicer person) but things started to fall apart. Her close rate was bett=
er than mine but there were all these things that she didn=E2=80=99t know a=
nd I didn=E2=80=99t teach her that were impacting everything from onboardin=
g to retention. It wasn=E2=80=99t her fault nobody told her to pull the blu=
e lever in the corner after every new customer signed because there was no =
process and no training that showed her how and when to pull the lever. All=
 these things added up to me having less time instead of more. We chased do=
wn $2m in annual recurring revenue in this weird limbo of scaling but not s=
caling. I remember realizing, stupidly, that if I wanted things to change t=
hen I would have to do something differently.=C2=A0

Hiring someone doesn=E2=80=99t equal scaling. It simply adds more work, lea=
ding to a temporary drop in productivity. It wasn=E2=80=99t until our new r=
ep could stand on her own, close her own deals, and hand them off to the ac=
count strategy team that I was able to recoup some time back on my calendar=
. She wasn=E2=80=99t able to do that until I had documented all of the litt=
le things that I had done during and after the sales process that made thin=
gs go smoothly. She needed a process to follow and some training on how to =
run them.=C2=A0

While adding process and training certainly helped reclaim my time, I was s=
till consumed by communicating with folks about the deals that were closing=
 and the leads we were generating. When I, the CEO, was running the sales p=
rocess I was communicating with all the people that needed to know about ne=
w customers during my regular course of business. When I stepped out of the=
 process and started focusing on other priorities, communications about new=
 customers started breaking down and my calendar took a hit again. We had a=
 good person and a strong process but we didn=E2=80=99t have great technolo=
gy to enable the process. We found a tool that helped us with our communica=
tion gaps and amended our process. The technology to enable the process was=
 the icing on the cake. It was the smallest piece of the puzzle by far but =
got a lot of the credit because it enabled us to repeat the process over an=
d over again.=C2=A0

I wasn=E2=80=99t able to fully pull myself out of the process until we had =
the right person, a process to enable them, and technology to enable the pr=
ocess. This was the start of our repeatable sales engine. I wish I could te=
ll you I ran through this loop once and figured it out immediately. I ran i=
nto the same issues when building our marketing, sales development, and acc=
ount management teams. After reflecting on my struggles, I realized there w=
ere four key processes that all contributed to growth and I=E2=80=99ll talk=
 about them in the next chapter. What=E2=80=99s important to understand now=
 is in order to build a repeatable sales engine, you=E2=80=99ll need people=
, a process, and technology. In that order.=C2=A0

If we were never able to make that first rep productive there would be a th=
eoretical revenue cap on the business. There=E2=80=99s only so much company=
 building one can do when you work on it in the evenings and weekends. Ther=
e=E2=80=99s nothing wrong with burning the midnight oil every now and then =
but I certainly wouldn=E2=80=99t have survived 12 years of it and I don=E2=
=80=99t think the company would have either.=C2=A0

When you are trying to get your startup off the ground, there are two =E2=
=80=9Conly things that matter=E2=80=9D:

1. Find an unmet market need=C2=A0

2. Build a repeatable sales model=C2=A0

For the worst results, tackle them in whichever order you feel like. For be=
st results, start with product market fit and work down the list. I recogni=
ze these three steps might remind you of the meme advice, =E2=80=9Cstep 1 -=
 interview a bunch of people, step 2 - be the child of a hedge fund manager=
=E2=80=A6=E2=80=9D. It=E2=80=99s hard to overstate how hard each of each of=
 these steps was to figure out the first time. But it=E2=80=99s possible. I=
 got a C in Math 11 both times and somehow managed to bootstrap our way thr=
ough it. If I can do it, so can you.=C2=A0

Thanks for reading - if you made it this far, let me know what you think. A=
ll feedback is helpful.=20

Collin=20


=E2=80=94=E2=80=94=E2=80=94

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</style></head><body class=3D"a" style=3D"margin:0px auto;padding:0px;word-=
wrap:normal;word-spacing:normal;background-color:#FFFFFF;"><div role=3D"art=
icle" aria-roledescription=3D"email" aria-label=3D"email_name" lang=3D"en" =
style=3D"font-size:1rem"><table role=3D"none" width=3D"100%" border=3D"0" c=
ellspacing=3D"0" align=3D"center" cellpadding=3D"0" class=3D"gg"><tr><td al=
ign=3D"center" valign=3D"top"><table role=3D"none" width=3D"670" border=3D"=
0" cellspacing=3D"0" cellpadding=3D"0" class=3D"aa" style=3D"width:670px;ta=
ble-layout:fixed;"><tr><td class=3D"bodyWrapper" align=3D"center" valign=3D=
"top" style=3D"padding:10px 5px 10px 5px;"><table role=3D"none" width=3D"10=
0%" border=3D"0" cellspacing=3D"0" cellpadding=3D"0" align=3D"center"><tr><=
td align=3D"center" valign=3D"top" style=3D"border:0px solid #FFFFFF;border=
-radius:10px;background-color:#FFFFFF;" class=3D"c"><table role=3D"none" wi=
dth=3D"100%" border=3D"0" cellspacing=3D"0" cellpadding=3D"0" align=3D"cent=
er"><tr><td class=3D"f" align=3D"right" valign=3D"top" style=3D"padding:20p=
x 15px;"><p> October 04, 2024 &nbsp; | &nbsp; <a href=3D"https://link.mail.=
beehiiv.com/ss/c/u001.xDrLMY0giiSlGuELGCgU3vcTjpRMaSWzujUngxObjZYrCabQfdS8Q=
euInKYXW1f723kNcH87-R-x6Tc2gmLbAxk1hHutgxLy79dH1vKKge1_I23CYQF0s97m1Pr8Y-nw=
stGs-WZdjsPXaOUQcl4fKHOwhhvylyvKz-EEEqz3sJzjJDZzyJb82z0354Z9sHRAku3UNWzeG75=
CkX3sjOoOibOIfRlcx9SMNC8XVylVcH73zKROLrHT3krQkixRRSYDWwlc5OQiP8PBiokG9OvYwD=
gsfN9V4U9kdeU-uqoyeTXU61KIUQ4Rkh9tsoxAOEi9Dq1A1jNHx0QThImVIKb16maXXfJ44UKtr=
38LXzKhrLrGa59Apktl3F5UVtrkwda78Bu6aUwF-H8_-rshimB3imHjYuxNsikV986UENrcMlPo=
SgoOZwhdZ8CpOXp5iLZoA9iPf66qLEHe9GsQEZ4A7divsmbXf_4-QYr-g8pyf34dVPDmFwYSkv_=
VRyiPGuf-nE5cERymfMKm6CSBfPFgB1gwMV2hvPPqhyrLIMlQi5c809YHozFKPBh2a8t0s6yXT-=
juDW9Uq1JCEnBOQucHzPdOP6DYQ2YLu-XlOwvvH5gV_WoJcHvLAtJxbKBfQFQ7NWd-QgppJCXjb=
8TAWysEkW7V_a3z0jvuN1rBw6IRUVctIoGzvqKgumtcRib0yyV4BB-RLryXSWDdeOfSmUU2Qk02=
hRp78HcbC3H4TKtkbl9s3GESad83E9HkPomfv8kV1NimpNtb_OzmOymqMHsTwGeq227PxpFhQ9Z=
i9YSttm0nw414rrh6pg2T3Bb7-ZcZVB4yPd2yC96neMlODblRHcbSb9EJG_bJ7oemml4VZ1U/4a=
b/EuZd-ijwS5KS1UFxw35vog/h0/h001.7KmP_lVTcLP0UcmlAbJa1-8W9uA4ki0bfPGVJzONFr=
w">Read Online</a></p></td></tr><tr><td class=3D"dd" align=3D"center" valig=
n=3D"top" style=3D"padding:15px 15px 20px;"><table role=3D"none" width=3D"1=
00%" border=3D"0" cellspacing=3D"0" cellpadding=3D"0" align=3D"center"><tr>=
<td align=3D"center" valign=3D"top"><h1 style=3D"text-align:left;font-famil=
y:'Trebuchet MS','Lucida Grande',Tahoma,sans-serif;font-weight:Bold;font-si=
ze:32px;color:#2A2A2A;padding:2px 0;line-height:38px;"> the only thing(s) t=
hat matter </h1></td></tr></table></td></tr><tr><td align=3D"center" valign=
=3D"top" style=3D"padding:15px 15px 15px 15px;" class=3D"dd"><table role=3D=
"none" width=3D"100%" border=3D"0" cellspacing=3D"0" cellpadding=3D"0" alig=
n=3D"center"><tr><td align=3D"left" valign=3D"middle" class=3D"mob-stack"><=
table role=3D"none" border=3D"0" cellspacing=3D"0" cellpadding=3D"0" align=
=3D"right" class=3D"social-mobile"><tr><td align=3D"left" valign=3D"middle"=
><table role=3D"none" border=3D"0" cellspacing=3D"0" cellpadding=3D"0" alig=
n=3D"left" style=3D"width:100%"><tr><td align=3D"left" valign=3D"middle" st=
yle=3D"overflow: hidden;"><a style=3D"text-decoration:none;display:block;co=
lor:#989898;max-width:22px;border: 1px solid #EFEFEF;border-radius:50%;widt=
h:23px;height:23px;overflow:hidden;padding:7px 0 0 8px;position:relative;" =
href=3D"https://link.mail.beehiiv.com/ss/c/u001.UY7-jEMcRLZ5W6M0bzLpmxH7-WT=
t-1gChtTcndEMyBoSwgSdDaOALV1MAeTHOBSUWCqEjdMxJtRDlZvsKnAu88Z1YRIslV1dQgAoGe=
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ctKbv3NmQRHYGi8voTOoxjOhptNsraagvfzRbUJIvAmtE87nutryGHZZqOPON5HaYhLjKzspKql=
x2gBqiZOpoq1R_ahFKVe7UU2H32AsiYLn5Jw1wNbOkqPQ6WtSsZXoXXlJzo2R5b3SoJXAfoHAkB=
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SCAxKaobb1v8q1BbmT2WgeGK36KPE"><img style=3D"display:block;color:#000000;ma=
x-width:14px;" width=3D"18" alt=3D"" border=3D"0" src=3D"https://media.beeh=
iiv.com/cdn-cgi/image/fit=3Dscale-down,format=3Dauto,onerror=3Dredirect,qua=
lity=3D80/static_assets/facebook_grey.png"/></a></td><td width=3D"14" style=
=3D"width:14px;">&nbsp;</td><td align=3D"left" valign=3D"middle" style=3D"o=
verflow: hidden;"><a style=3D"text-decoration:none;display:block;color:#989=
898;max-width:28px;border: 1px solid #EFEFEF;border-radius:50%;width:21px;h=
eight:21px;padding:9px 0 0 9px;overflow:hidden;position:relative;" href=3D"=
https://link.mail.beehiiv.com/ss/c/u001.eT_HH9j2kUx6jXW0PHemwzOjQOpuqUKCn7L=
AbiCzlo1oxUN44u16xvalV9lCzdHNBiGxJ35W2JgtX9Xo4q8B-GD__4k5qsGMhwfulOnHCFJkG6=
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GejRCY-61WVQb0nHk6QFCbcW2rbqhXlQsJBdFOyd3n2qLT6q7KRGnRlUsh3rSnoAKLvW4SnTAb7=
zNe49ApoEVLhy8moiZvrY0SnC-bGG7hwnizZuCjTumiObBdf-i1mXErQ516xTQc4pZKlCbZ9CbU=
vO68wPdS2ad70HHvyZhiyUGb5Lg09FUD1i3zUORLe2ayVzslwGgTwEr0Zw5F9LXjRDodUFA/4ab=
/EuZd-ijwS5KS1UFxw35vog/h2/h001.VIgqIeSBRQ_-oefuhoJecjmhyvsNbv4M2-RZ4yqyKJ8=
"><img style=3D"display:block;color:#000000;max-width:12px;" width=3D"18" a=
lt=3D"" border=3D"0" src=3D"https://media.beehiiv.com/cdn-cgi/image/fit=3Ds=
cale-down,format=3Dauto,onerror=3Dredirect,quality=3D80/static_assets/x_gre=
y.png"/></a></td><td width=3D"14" style=3D"width:14px;">&nbsp;</td><td alig=
n=3D"left" valign=3D"middle" style=3D"overflow: hidden;"><a style=3D"text-d=
ecoration:none;display:block;color:#989898;max-width:28px;border: 1px solid=
 #EFEFEF;border-radius:50%;width:21px;height:21px;padding:9px 0 0 9px;overf=
low:hidden;position:relative;" href=3D"https://link.mail.beehiiv.com/ss/c/u=
001.UY7-jEMcRLZ5W6M0bzLpm9U9S1JYcj8zH88ooT01vXOKGqw1BJYJi8XJOykB3s2Lb7jZxgr=
JBXG9C9ZUz4moAa4Q_S2S42btZQnbWh52QxNmc9Sey79D_WV45TMqfsdR9Rrueun7prKiN5P_Q4=
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F91tZgcItsGJbGfl6gXM6GhKmJ-m9_wjtllHvgY"><img style=3D"display:block;color:=
#000000;max-width:12px;" width=3D"18" alt=3D"" border=3D"0" src=3D"https://=
media.beehiiv.com/cdn-cgi/image/fit=3Dscale-down,format=3Dauto,onerror=3Dre=
direct,quality=3D80/static_assets/threads_gray_64.png"/></a></td><td width=
=3D"14" style=3D"width:14px;">&nbsp;</td><td align=3D"left" valign=3D"middl=
e" style=3D"overflow: hidden;"><a style=3D"text-decoration:none;display:blo=
ck;color:#989898;max-width:28px;border: 1px solid #EFEFEF;border-radius:50%=
;width:22px;height:23px;padding:7px 0 0 8px;overflow:hidden;position:relati=
ve;" href=3D"https://link.mail.beehiiv.com/ss/c/u001.UY7-jEMcRLZ5W6M0bzLpm5=
Vsol3-4mO68bGpSvtYIyCFMPHZM3NHfCQCEvGpU3U82219i03ZXpcWbsDp4yL-p1i7f6hDWNjIp=
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MgQgB-FHXs9K47ts53eQUakb-O_npmJg7Y"><img style=3D"display:block;color:#0000=
00;max-width:14px;" width=3D"14" alt=3D"" border=3D"0" src=3D"https://media=
.beehiiv.com/cdn-cgi/image/fit=3Dscale-down,format=3Dauto,onerror=3Dredirec=
t,quality=3D80/static_assets/in_grey.png"/></a></td><td width=3D"14" style=
=3D"width:14px;">&nbsp;</td><td align=3D"left" valign=3D"middle" style=3D"o=
verflow: hidden;"><a style=3D"text-decoration:none;display:block;color:#989=
898;max-width:28px;border: 1px solid #EFEFEF;border-radius:50%;width:24px;h=
eight:24px;padding:6px 0 0 6px;overflow: hidden;" href=3D"mailto:?subject=
=3DPost%20from%20Predictable%20Revenue%3A%20Founders%20Edition&body=3Dthe%2=
0only%20thing%28s%29%20that%20matter%3A%20%0A%0Ahttps%3A%2F%2Fpredictablere=
venue-newsletter.beehiiv.com%2Fp%2Fthe-only-thing-s-that-matter"><img style=
=3D"display:block;color:#000000;max-width:26px;" width=3D"26" alt=3D"" bord=
er=3D"0" src=3D"https://media.beehiiv.com/cdn-cgi/image/fit=3Dscale-down,fo=
rmat=3Dauto,onerror=3Dredirect,quality=3D80/static_assets/icon-email.png"/>=
</a></td></tr></table></td></tr></table></td></tr></table></td></tr><tr><td=
 style=3D"height:0px;width:0px;"><div style=3D"height:1px;" data-open-track=
ing=3D"true"> <img src=3D"https://link.mail.beehiiv.com/ss/o/u001.QDl44NxZB=
c1mRkS74rGpGQ/4ab/EuZd-ijwS5KS1UFxw35vog/ho.gif" alt=3D"" width=3D"1" heigh=
t=3D"1" border=3D"0" style=3D"height:1px !important;width:1px !important;bo=
rder-width:0 !important;margin-top:0 !important;margin-bottom:0 !important;=
margin-right:0 !important;margin-left:0 !important;padding-top:0 !important=
;padding-bottom:0 !important;padding-right:0 !important;padding-left:0 !imp=
ortant;"/> </div></td></tr><tr id=3D"content-blocks"><td class=3D"email-car=
d-body" align=3D"center" valign=3D"top" style=3D"padding-bottom:15px;"><tab=
le role=3D"none" width=3D"100%" border=3D"0" cellspacing=3D"0" cellpadding=
=3D"0" align=3D"center"><tr><td class=3D"dd" align=3D"left" style=3D"paddin=
g:0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><s=
pan style=3D"color:rgb(44, 62, 80);">Good morning Andrew, </span></p></td><=
/tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-alig=
n:left;word-break:break-word;"><p style=3D"color: ;"><span style=3D"color:r=
gb(44, 62, 80);">I handed in the shitty first draft of the manuscript this =
week! It topped out at 56k words and I know there are more to be added but =
I=E2=80=99m really happy with the progress of the core ideas. What happens =
now is called the substantive edit where they focus on the big-picture elem=
ents of the book, such as structure, content, flow, style, and organization=
. </span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding=
:0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><sp=
an style=3D"color:rgb(44, 62, 80);">In preparation for submitting the draft=
 I was reviewing and rereading some of my early chapters and realized that =
something was missing from the intro or first chapter. The core idea of the=
 book is that there are two things that matter, finding strong product mark=
et fit and then building a scalable sales engine to capture the unmet deman=
d you found. What was missing was the emphasis on the sales engine so I=E2=
=80=99ve added a few stories to reinforce that point. </span></p></td></tr>=
<tr><td class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-align:le=
ft;word-break:break-word;"><p style=3D"color: ;"><span style=3D"color:rgb(4=
4, 62, 80);">How do these two stories support the point? Let me know if the=
y resonate or could use something else. </span></p></td></tr><tr><td class=
=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-align:left;word-break=
:break-word;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">=
Here=E2=80=99s the tl;dr:</span></p></td></tr><tr><td style=3D"padding-bott=
om:12px;padding-left:37px;padding-right:27px;padding-top:12px;" class=3D"ee=
"><div style=3D"margin-left:0px;" class=3D"edm_outlooklist"><ul style=3D"li=
st-style-type:disc;margin:0px 0px;padding:0px 0px 0px 0px;"><li class=3D"li=
stItem ultext"><p style=3D"padding:0px;text-align:left;word-break:break-wor=
d;"><span style=3D"color:rgb(44, 62, 80);">It=E2=80=99s necessary to rely o=
n the founder for everything for your first $1m</span></p></li><li class=3D=
"listItem ultext"><p style=3D"padding:0px;text-align:left;word-break:break-=
word;"><span style=3D"color:rgb(44, 62, 80);">At some point you=E2=80=99re =
going to need to work on the business instead of in it=C2=A0</span></p></li=
><li class=3D"listItem ultext"><p style=3D"padding:0px;text-align:left;word=
-break:break-word;"><span style=3D"color:rgb(44, 62, 80);">Finding a way to=
 profitably scale your customer acquisition engine is the best way to free =
up your time </span></p></li></ul></div></td></tr><tr><td class=3D"dd" alig=
n=3D"left" style=3D"padding:0px 15px;text-align:left;word-break:break-word;=
"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">Here=E2=80=
=99s the piece I=E2=80=99m adding to the Intro: </span></p></td></tr><tr><t=
d class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-align:left;wor=
d-break:break-word;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62,=
 80);">In the summer of 2013, after 18 months and 1 customer, I made a prom=
ise to my co-founders. I wouldn=E2=80=99t ask them to write another line of=
 code until we had 5 paying customers. I had noticed that sales leaders wit=
h SDRs seemed to have the biggest pain and I wanted to validate it. I worke=
d out a way to test it manually but I needed a break so I booked a surf tri=
p with my future wife to Costa Rica. I figured that I could take a few mont=
hs to interview people, run a few tests, and then take some time to recover=
 on a beach while my co-founders, Preston and Francesco, built an MVP. Unfo=
rtunately for my future wife and surf skills, it didn=E2=80=99t work out qu=
ite that way.=C2=A0</span></p></td></tr><tr><td class=3D"dd" align=3D"left"=
 style=3D"padding:0px 15px;text-align:left;word-break:break-word;"><p style=
=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">I was amazed by what I=
 could see when I finally pulled my head out of my ass and started listenin=
g to people. The people I interviewed loved the insight but they hated my s=
olution to their problem. My interviews were with sales leaders and Sales D=
evelopment Reps (SDRs) and they all were struggling with translating their =
playbooks into something that Salesforce could help them execute in 2013. T=
his was the exact problem we had been trying to solve for the past 18 month=
s but had missed a couple pieces of critical information. Instead of a CRM,=
 we needed to work alongside Salesforce. Instead of solving the problem for=
 </span><span style=3D"color:rgb(44, 62, 80);"><i>every</i></span><span sty=
le=3D"color:rgb(44, 62, 80);"> CRM user, we needed to focus on solving it f=
or SDRs. I had been so close to a breakthrough for so long but I couldn=E2=
=80=99t see it until I started really listening. I was directionally correc=
t but off by just enough to still be wrong.</span></p></td></tr><tr><td cla=
ss=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-align:left;word-bre=
ak:break-word;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);=
">I worked out how to test the idea with a wizard of oz style beta by cobbl=
ing together a bunch of Google Sheets scripts I copy and pasted from Stacko=
verflow. A wizard of oz beta is when you can get to the rough outcome that =
the future software will accomplish with off the shelf tools and a bunch of=
 elbow grease. You also get to shout =E2=80=9Cpay no attention to the man b=
ehind the curtain!=E2=80=9D daily which is the fun part. Everything was so =
manual that, when I did the math, I figured I could only handle 5 customers=
. My goal was to find 5 people that would give me $500 for me to act as an =
email only SDR for a month. I wanted to prove that people would pay for thi=
s type of automation and that we could generate serious results using the m=
ethodology. After 5 meetings I walked away with 7 customers. Two of the sal=
es leaders were so adamant that we had to help their friend&#39;s company t=
oo and I couldn=E2=80=99t resist saying yes. When you=E2=80=99ve been pushi=
ng a big rock up a hill for 18 months getting a response like this was into=
xicating. I didn=E2=80=99t realize this rock would start picking up speed a=
s it rolled down the hill.=C2=A0</span></p></td></tr><tr><td class=3D"dd" a=
lign=3D"left" style=3D"padding:0px 15px;text-align:left;word-break:break-wo=
rd;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">The manua=
l beta was chaotic but it worked. It worked really well. After we finished,=
 one of our early customers, James Clift, asked for the same but 10x bigger=
. James was the guy who recommended I read Predictable Revenue in the first=
 place so I didn=E2=80=99t want to let him down. I also didn=E2=80=99t want=
 to take his money and not deliver on so I managed to talk him down to 5x.=
=C2=A0</span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"pad=
ding:0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"=
><span style=3D"color:rgb(44, 62, 80);">The beta was a turning point for us=
. Instead of hearing =E2=80=9Cthat=E2=80=99s a smart idea=E2=80=9D we were =
hearing =E2=80=9Cohhhh, you need to talk to Michelle about this=E2=80=9D. I=
 managed to pull off 50 interviews in a very short period, mostly powered b=
y unprompted referrals. What this experience taught me was that while sales=
 skills are important, they aren=E2=80=99t the first thing that=E2=80=99s i=
mportant. We ended up canceling our Costa Rica trip because I didn=E2=80=99=
t want to lose the momentum. We were finally working on something that peop=
le cared about and that was more exciting than a beach.=C2=A0</span></p></t=
d></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-a=
lign:left;word-break:break-word;"><p style=3D"color: ;"><span style=3D"colo=
r:rgb(44, 62, 80);">My sales skills hadn=E2=80=99t improved but suddenly my=
 close rate had shot up. The thing that had changed was our idea. It was th=
e same insight but we had narrowed our focus and changed how we were going =
to solve it to align with what the market wanted.=C2=A0</span></p></td></tr=
><tr><td class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-align:l=
eft;word-break:break-word;"><p style=3D"color: ;"><span style=3D"color:rgb(=
44, 62, 80);">This experience taught me what should have been obvious, if y=
ou=E2=80=99re trying to sell something that people don=E2=80=99t want, it d=
oesn=E2=80=99t matter how good of a salesperson you are. The inverse is als=
o true. When you=E2=80=99re trying to solve a problem that everyone cares a=
bout, it doesn=E2=80=99t matter how good of a salesperson you are. The only=
 thing that matters is finding and solving an unmet need that people place =
a high value on solving.=C2=A0</span></p></td></tr><tr><td class=3D"dd" ali=
gn=3D"left" style=3D"padding:0px 15px;text-align:left;word-break:break-word=
;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">When we piv=
oted from voltageCRM to </span><span style=3D"color:rgb(44, 62, 80);"><a cl=
ass=3D"link" href=3D"https://link.mail.beehiiv.com/ss/c/u001.GcqSUcM8vWDcK6=
t4-fN1SVfwYPiLOJWrQG2xF_XEheWnIyhd83ewKvRP0wrhwS8R4FPGfP16Q8O_CsWD05KXj8Uct=
IAzf0wC2XmfL1wCL_fGBUlhxD-6BiWpX81SDkqTClA5ZOW2gkOux8FfF27zypRIboh4g1C2t493=
gK1iqC8tqDGqRs9iwOyeQkS9I0TX3KVW8airqfEfAVO6O0IOLRshCFWJKRqm8dHMZPRp0gk5vI7=
4XwR08ij_ZgCnoE-c/4ab/EuZd-ijwS5KS1UFxw35vog/h5/h001.82-DaZv8-Qskh9zEi0LFyP=
PYVM8d-uBE-sfiS_Md2vM" target=3D"_blank" rel=3D"noopener noreferrer nofollo=
w"><span>Carb.io</span></a></span><span style=3D"color:rgb(44, 62, 80);"> w=
e finally found product market fit. But what was the precise moment when we=
 =E2=80=9Cfound=E2=80=9D it? Was it when we decided to change our focus? Wh=
en a customer paid for the janky beta? When we finally built an MVP?=C2=A0<=
/span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0p=
x 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><span =
style=3D"color:rgb(44, 62, 80);">It was when money changed hands. A financi=
al transaction is what converted our hypothetical research project into som=
ething real. If there=E2=80=99s no money changing hands, there is no differ=
ence between your customer development process and a college research proje=
ct. Both are just collecting information. We didn=E2=80=99t charge a crazy =
amount to start but it wasn=E2=80=99t anywhere close to free. Early beta us=
ers were paying in the neighborhood of $500 a month. If all I ever did was =
interview sales leaders and never asked any of them for money I wouldn=E2=
=80=99t have known exactly how much demand there was for what we were doing=
. By having an offer, even a janky one, we were able to learn that people r=
eally wanted to solve the problem we were working on.=C2=A0</span></p></td>=
</tr><tr><td id=3D"ok-there-are-really-two-things-that" class=3D"dd" align=
=3D"left" valign=3D"top" style=3D"color:#2A2A2A;font-weight:normal;padding:=
0px 15px;text-align:left;"><h2 style=3D"color:#2A2A2A;font-weight:normal;">=
<span style=3D"color:rgb(44, 62, 80);">Ok, There Are Really Two Things That=
 Matter</span></h2></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"p=
adding:0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: =
;"><span style=3D"color:rgb(44, 62, 80);"><a class=3D"link" href=3D"https:/=
/link.mail.beehiiv.com/ss/c/u001.GcqSUcM8vWDcK6t4-fN1SVfwYPiLOJWrQG2xF_XEhe=
WnIyhd83ewKvRP0wrhwS8R4FPGfP16Q8O_CsWD05KXj8UctIAzf0wC2XmfL1wCL_fGBUlhxD-6B=
iWpX81SDkqTClA5ZOW2gkOux8FfF27zypRIboh4g1C2t493gK1iqC8tqDGqRs9iwOyeQkS9I0TX=
tEdBHrTUTty-_A5WAPBeDxDaANzkmPqhB5M_5uh0nWl0QyFV9RtA9UEXa_FTq10Q/4ab/EuZd-i=
jwS5KS1UFxw35vog/h6/h001.segO0ZXfemN_TfxPgJXXUfYNhnM4nFd8ZAQmXzHFf_0" targe=
t=3D"_blank" rel=3D"noopener noreferrer nofollow"><span>Carb.io</span></a><=
/span><span style=3D"color:rgb(44, 62, 80);"> scaled from $0 - $1m in a few=
 months but plateaued because we couldn=E2=80=99t outrun our churn. Custome=
rs initially loved us but when an email prospecting tool takes a week from =
clicking Send to the actual email getting sent, you=E2=80=99re going to hav=
e problems. Interestingly, at the same time as Carb was plateauing, our ser=
vices business was growing rapidly. We were helping people run cold email c=
ampaigns where customers only cared about results. When you don=E2=80=99t h=
ave to worry about timing or UI, Carb did a good enough job to help us deli=
ver on that promise extremely well.=C2=A0</span></p></td></tr><tr><td class=
=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-align:left;word-break=
:break-word;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">=
Our services revenue quickly outgrew our SaaS revenue and we nearly doubled=
 over the next year. When we were striving for the mythical $83333 monthly =
recurring revenue ($1m annually) I remember thinking that once we hit that =
number, everything would be gravy. I=E2=80=99d have more time to focus on b=
uilding the company and we=E2=80=99d have more resources to invest in hirin=
g folks. A funny thing happened when we reached that milestone=E2=80=A6 abs=
olutely nothing. The only difference was the number.=C2=A0</span></p></td><=
/tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-alig=
n:left;word-break:break-word;"><p style=3D"color: ;"><span style=3D"color:r=
gb(44, 62, 80);">I hung onto the sales role until we hit around $1m ARR but=
 I was still actively involved in our sales and marketing team. What didn=
=E2=80=99t make sense to me was that we hired a great salesperson (more exp=
erience, great closer, nicer person) but things started to fall apart. Her =
close rate was better than mine but there were all these things that she di=
dn=E2=80=99t know and I didn=E2=80=99t teach her that were impacting everyt=
hing from onboarding to retention. It wasn=E2=80=99t her fault nobody told =
her to pull the blue lever in the corner after every new customer signed be=
cause there was no process and no training that showed her how and when to =
pull the lever. All these things added up to me having less time instead of=
 more. We chased down $2m in annual recurring revenue in this weird limbo o=
f scaling but not scaling. I remember realizing, stupidly, that if I wanted=
 things to change then I would have to do something differently.=C2=A0</spa=
n></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0px 15=
px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><span styl=
e=3D"color:rgb(44, 62, 80);">Hiring someone doesn=E2=80=99t equal scaling. =
It simply adds more work, leading to a temporary drop in productivity. It w=
asn=E2=80=99t until our new rep could stand on her own, close her own deals=
, and hand them off to the account strategy team that I was able to recoup =
some time back on my calendar. She wasn=E2=80=99t able to do that until I h=
ad documented all of the little things that I had done during and after the=
 sales process that made things go smoothly. She needed a process to follow=
 and some training on how to run them.=C2=A0</span></p></td></tr><tr><td cl=
ass=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-align:left;word-br=
eak:break-word;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80)=
;">While adding process and training certainly helped reclaim my time, I wa=
s still consumed by communicating with folks about the deals that were clos=
ing and the leads we were generating. When I, the CEO, was running the sale=
s process I was communicating with all the people that needed to know about=
 new customers during my regular course of business. When I stepped out of =
the process and started focusing on other priorities, communications about =
new customers started breaking down and my calendar took a hit again. We ha=
d a good person and a strong process but we didn=E2=80=99t have great techn=
ology to enable the process. We found a tool that helped us with our commun=
ication gaps and amended our process. The technology to enable the process =
was the icing on the cake. It was the smallest piece of the puzzle by far b=
ut got a lot of the credit because it enabled us to repeat the process over=
 and over again.=C2=A0</span></p></td></tr><tr><td class=3D"dd" align=3D"le=
ft" style=3D"padding:0px 15px;text-align:left;word-break:break-word;"><p st=
yle=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">I wasn=E2=80=99t ab=
le to fully pull myself out of the process until we had the right person, a=
 process to enable them, and technology to enable the process. This was the=
 start of our repeatable sales engine. I wish I could tell you I ran throug=
h this loop once and figured it out immediately. I ran into the same issues=
 when building our marketing, sales development, and account management tea=
ms. After reflecting on my struggles, I realized there were four key proces=
ses that all contributed to growth and I=E2=80=99ll talk about them in the =
next chapter. What=E2=80=99s important to understand now is in order to bui=
ld a repeatable sales engine, you=E2=80=99ll need people, a process, and te=
chnology. In that order.=C2=A0</span></p></td></tr><tr><td class=3D"dd" ali=
gn=3D"left" style=3D"padding:0px 15px;text-align:left;word-break:break-word=
;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">If we were =
never able to make that first rep productive there would be a theoretical r=
evenue cap on the business. There=E2=80=99s only so much company building o=
ne can do when you work on it in the evenings and weekends. There=E2=80=99s=
 nothing wrong with burning the midnight oil every now and then but I certa=
inly wouldn=E2=80=99t have survived 12 years of it and I don=E2=80=99t thin=
k the company would have either.=C2=A0</span></p></td></tr><tr><td class=3D=
"dd" align=3D"left" style=3D"padding:0px 15px;text-align:left;word-break:br=
eak-word;"><p style=3D"color: ;"><span style=3D"color:rgb(44, 62, 80);">Whe=
n you are trying to get your startup off the ground, there are two =E2=80=
=9Conly things that matter=E2=80=9D:</span></p></td></tr><tr><td style=3D"p=
adding-bottom:12px;padding-left:37px;padding-right:27px;padding-top:12px;" =
class=3D"ee"><div style=3D"margin-left:0px;" class=3D"edm_outlooklist"><ol =
start=3D"1" style=3D"list-style-type:decimal;margin:0px 0px;padding:0px 0px=
 0px 0px;"><li class=3D"listItem ultext"><p style=3D"padding:0px;text-align=
:left;word-break:break-word;"><span style=3D"color:rgb(44, 62, 80);">Find a=
n unmet market need=C2=A0</span></p></li><li class=3D"listItem ultext"><p s=
tyle=3D"padding:0px;text-align:left;word-break:break-word;"><span style=3D"=
color:rgb(44, 62, 80);">Build a repeatable sales model=C2=A0</span></p></li=
></ol></div></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:=
0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><spa=
n style=3D"color:rgb(44, 62, 80);">For the worst results, tackle them in wh=
ichever order you feel like. For best results, start with product market fi=
t and work down the list. I recognize these three steps might remind you of=
 the meme advice, =E2=80=9Cstep 1 - interview a bunch of people, step 2 - b=
e the child of a hedge fund manager=E2=80=A6=E2=80=9D. It=E2=80=99s hard to=
 overstate how hard each of each of these steps was to figure out the first=
 time. But it=E2=80=99s possible. I got a C in Math 11 both times and someh=
ow managed to bootstrap our way through it. If I can do it, so can you.=C2=
=A0</span></p></td></tr><tr><td class=3D"dd" align=3D"left" style=3D"paddin=
g:0px 15px;text-align:left;word-break:break-word;"><p style=3D"color: ;"><s=
pan style=3D"color:rgb(44, 62, 80);">Thanks for reading - if you made it th=
is far, let me know what you think. All feedback is helpful. </span></p></t=
d></tr><tr><td class=3D"dd" align=3D"left" style=3D"padding:0px 15px;text-a=
lign:left;word-break:break-word;"><p style=3D"color: ;"><span style=3D"colo=
r:rgb(44, 62, 80);">Collin </span></p></td></tr></table></td></tr><tr><td c=
lass=3D"b" align=3D"center" valign=3D"top" bgcolor=3D"#007b8a" style=3D"pad=
ding:0px;border-bottom-left-radius:10px;border-bottom-right-radius:10px;"><=
table role=3D"none" width=3D"100%" border=3D"0" cellspacing=3D"0" cellpaddi=
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=3D"#f5bf83" style=3D"padding:12px"><table role=3D"none" width=3D"100%" bor=
der=3D"0" cellspacing=3D"0" cellpadding=3D"0" align=3D"center"><tr><td><spa=
n style=3D"padding-left:1px;"></span></td><td align=3D"center" valign=3D"mi=
ddle" width=3D"75" style=3D"width:75px;"><a href=3D"https://link.mail.beehi=
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e></td></tr><tr><td height=3D"10" style=3D"line-height:1px;font-size:1px;he=
ight:10px;"> &nbsp; </td></tr><tr><td class=3D"w" align=3D"center" valign=
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