Every so often a new term pops up to make founders feel acutely inadequate and uninformed. "Founder led growth" is one such term I've heard more crop up more frequently in startup circles.
Is it a strategy? Some might say so. To me it's more of a mindset.
So what does it mean, in founder-friendly speak?
To me, it's simply, "When early stage company founders lead growth by building trust and awareness, and transferring it to their company".
So yeah, mystery solved. It's not new and it's no big deal really.
But for founders wondering if they are doing "founder led growth" (or "FLG" - ugh!), here are three main tenets.
STEP 1: Build in public (0-5+ years)
This is when a founder bravely starts documenting their startup business building journey in public, right from the outset, often when they have just a seed of an idea.
By talking about the problem and their pursuit of a solution early, they position themselves as a problem solver and thought leader; attract followers and stakeholders the problem resonates with; and build a supportive audience (often open to helping with
market validation) well before they have a solution for the market.
This action of openly sharing the ups and downs of the inevitably messy startup phase requires founders to exhibit transparency, vulnerability and authenticity. Traits that in years gone by would have been considered a "no-go" for any self respecting business man or woman wanting to project an image of supreme confidence, strength and capability.
With founder led growth, building in public is almost the opposite of the old "fake it until you make it" idiom.
STEP 2: Early sales done by the founder/s (0-3+ years)
Founder led growth means that rather than fobbing off the responsibility, the founder/s roll up their sleeves and lead the charge at the coalface of sales efforts, learning intimately what it takes to achieve a precious sale and customer.
In the early days of a startup, where product development and iteration is happening simultaneously to marketing and sales, customers are reassured by having direct access to the people in charge.
Founders who provide this are rewarded with an increase in trust and more importantly, first hand feedback about what is and isn't working.
STEP 3: Transfer of trust from the founder/s to the brand (0-? years)
Finally, if the eventuating products have lived up to expectations, at some stage there will be a gradual market transfer of trust, where X is the amount of time it takes for the brand to stand on its own, regardless of who is at the top.
We live in a low-trust, high-noise world where it's becoming increasingly difficult for people without domain knowledge to discern who to believe about what, and who they can trust with their money.
If you're looking for a quick fix this is not it. But if you're genuinely committed to your problem and tribe, being open, authentic and involved pays dividends no matter what you choose to call it.
Richard Liew is a cofounder at FoundrPR.