Five Laws of Growth. Non-negotiable principles of every successful growth team or tribe. 1️⃣ Product Market Fit (PMF), then data, then growth. Growth is *the maximum distribution of a product via the scientific method*. This applies to brand new companies or new products within an existing company. 1.1 Growth before PMF = focusing on the distribution of a product that is not yet ready, often leading to incorrect internal priorities and PMF failure. 1.2 Growth before data = few intuitive random wins, but will not be a scientific, data-driven discovery of the growth model. The result is a lack of ability to generate forecastable business outcomes. 2️⃣ Scale with frameworks, not hacking. Solving problems with frameworks creates replicable process for learnings and wins. A hack is okay, but it won’t be a scalable effort. 3️⃣ Build loops, not funnels. Loops are flywheels where outputs are reinvested as inputs, creating self-sustained compounding growth. Funnels are linear, with constant pressure on the top of the funnel, which no amount of new channels, dollars, or tactics will ever be enough to fill at scale. Successful growth leverages funnels to feed loops but prioritizes building loops. 4️⃣ Growth is evolution, not revolution. Growth evolution = lasting success by creating a predictable, sustainable, competitively defensible growth system. Revolution brings chaos, unpredictability, and a high likelihood of rejection (internal or by market). From investing in growth internally vs. bringing an outside leader, to expanding to adjacent users vs. picking a brand new persona - evolution is always a better path. 5️⃣ Embrace failure turned into learning. The growth team's goal is to discover the biggest perception and reality gaps in existing product<>customer interaction. Applying the scientific method ,such as experimentation, is the most predictable way to speed up this discovery. The process leverages failures to refine hypotheses and deliver wins. The growth team goal should learn (and be allowed to fail) on regular basis. #growth If you want to dig in: Growth with Loops by Reforge: https://lnkd.in/gtvgT864 Adjacent User by Bangaly: https://lnkd.in/gjhzXEgv How to do B2B Growth podcast with Lenny: https://lnkd.in/gWrK5hAB
Thanks for sharing! 👏 What are the indicators that you've reached PMF? User retention?
Created by Elena Verna?? 😍😍
Thanks for the amazing insights, Elena! Assuming that PMF lies on a continuum, how do you suggest assessing if the PMF is good enough to invest in growth? (As I see it, scaling experiments could sometimes also help improve/refine PMF.)
“Loops, not funnels” is such a recognisable Reforge quote :)
Where can I find out more about Growth as a scientific method? Reforge was amazing for frameworks and loops!
I’ve always felt like growth hacking just sets up the future team and product to fail. Metrics start to fall. Teams scrambling to find the next “growth hack.” And employees feel like failures when it’s not their fault. The leaders set them up to fail with that approach. This mindset you shared here reduces risk and sets up growing teams for success.
Absolutely, thank you 🙌 I'll also add to keep gathering qualitative data from customers, the best experiments ideas often come from our customer's insights. For PMF, ask your customers "How would you feel if you could no longer use {your company name/product}". If less than 40% of them answer they would be very disappointed, PMF is not there yet.
💙 this! I would also add these KPIs to aim for: • Gross Margin: >85% • Gross Retention: >97% • Net Retention: >130% • Sales Efficiency: >1.2x • LTV/CAC: >8.0x • Burn Multiple: <1.0x
Totally agree. Achieving PFM and scale ready state is crucial for growth, otherwise it turns into a mass distribution of a leaking bucket.
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1yCan you pls explain bit more on point 3? It sounds like you are just adding retention + compound engagement to traditional funnels here to call it a "loop". Is that correct? I think if we maintain AARRR/ AARR funnel framework, loops (as you defined above), can be achieved. Let me know what you think, thanks for the nice post!