Uber's Founder Just Confirmed The B2B Growth Thesis

Uber’s co-founder Travis Kalanick (who just launched a new startup of a B2B robotics company) was on TBPN the other day where he had this statement on B2B growth:

"When you go from consumer to B2B, the number one mega challenge that you must master is called LTV to CAC. Yes, you could make that argument on consumer, but when you have a sales funnel that starts with 'I'm going to talk to customers' and you have to make LTV to CAC work”

This is the fundamental idea we deploy in our Revenue Advisory Offer.

The GTM motion for companies from Seed-Series C is usually the most important part of the business.

Products are roughly built and being used by early customers, investors are starting to poke around and show interest in this being a successful company, and everything falls on the back of one main question:

“Can this be successful / profitable long term?”

For arguments sake, let’s assume that the LTV of a customer of yours is fixed.

Obviously, you can make your product more expensive, retain customers for longer, or change your pricing structure to increase LTV, but I want to focus on acquisition first.

Finding message-market-fit is the easiest way to lower your cost to acquire a new customer - and yet no one is putting enough time and resources into it.

I describe MMF (not a term coined by me FYI) as the most efficient alignment between how you talk about your product and how your customer actually makes a buying decision.

Instead of "team messaging software," Slack said: "Be less busy." They described the outcome the buyer already wanted. Every overloaded office worker immediately self-identified. That's MMF.

Understanding the words, phrases, features, and benefits of your product - to the roles, titles, and maturities of your customers is the most important thing to identify for early stage companies.

Yet funding budgets are deployed on:

• “branding”

• “sales reps”

• “pretty slide decks”

How is a new sales rep supposed to be successfully when he / she doesn’t know WHY their leads want to buy?

If LTV / CAC is the holy grail for how early stage companies can scale a go-to-market motion, message-market-fit is the seeds you need to plant in the ground before you can expect your flowers to grow.

This is the entire backbone of the company we’ve built, how we’ve helped our clients, and what our plan is for the next few years on how we can help companies at this stage grow and excel in their markets.

If you got any value from this, drop me a note - I’d love to hear from you.

Have a great rest of your day.

Ryan Bryden
Breakout Capital Group

Adding a bit of a throwback a few years ago to one of the first clients we ran this playbook for:

How we helped Octup book 60+ demos and add $100k+ in ARR.

Watch the video here