Hello friends. Welcome to a tradition unlike any other. This is the Rev Ops NBA with Brian Kreutz.

So here is the growth model and there's a lot going on, but I'll walk through piece by piece. And the idea here is to see where your company fits within it and which go to market motions are in which section. And so, on the left-hand side, or on, on the bottom here, we kind of have the, the growth model phases. And so we go from prototype, MVP is minimum viable product, PMF is product market fit, then we switch to go to market fit, scale up, grown up, and then past this, there's enterprise, um, and very mature companies. The horizontal axis is time, and the vertical axis is revenue. And so these not, might not fit your business exactly, but generally, uh companies kind of fall into these kind of categories. And so this uh dot right here where these intersect, this is like ground zero, this is, you, you're making your first dollar of revenue, you're acquiring your first customer. So anywhere left of this is gonna be your revenue, you're kind of in the MVP or prototype stage. You're trying to figure out if customers will actually pay you for your product or service. So as we move right through the growth model, again, you're trying to figure out where your company fits here. The first one is product market fit, and this is where you really learn to price your product. And so a lot of times, this is from uh zero revenue to 11 million in revenue, and then 0 customers to maybe 1000 customers, but for some companies that can be a lot less. And the idea here is that you're learning how to price your product, you're trying to figure out if the product or service is valuable enough to price at a price point where customers will actually pay for it. And you can see here, this line is pretty linear. And so, um, if you look at the bottom, it's time. So, the angle of this line can be um a lot more horizontal, which means you got to a million dollars a lot quicker, you achieve product market fit a lot quicker, maybe you had a, a viral product, or that line can be a little bit more shallow, and it might have taken you a longer time horizon to get there. But It, it's really a linear because here, your, your customer acquisition cost is high. You're starting out, you're kind of working with uh a very small subset of employees, and every new customer you get is gonna add to that bottom line or top line, but you don't have enough customers or enough time to actually have uh retention there to actually build on that recurring revenue. And so isn't, there isn't this uh built up recurring revenue reserve that you're able to bank on before you get to $1 million. And so that's why that line becomes pretty linear here. Now, once you get to point A, you've got your first customers, but they come with a high customer acquisition cost because every single customer is basically net new. Now, when you go down to go to Market fit a little bit further, this is between really 1 million and 10 million. And of course, they don't follow these revenue thresholds exactly, but generally, that's kind of where Go to Market fit begins to take place. And that's where you learn to sell your product. And so that's where you've been able to grow at your sales team, maybe grow at an operational team. A customer success team, um, get some other folks in place to support the org, and you're really learning how to sell your product in new different places. That's where one of those go to market motions come in. A lot of us last week said that we've got multiple go to market motions. So you might have one that's pretty established, but you might have one that's brand new and you're learning how to sell that. What are all the operational procedures in place? What is your sale cycle like? What are your deal stages like so that you can sell your product very, very repeatable. You'll see here that the line is very squiggly. This is where a lot of like friction and a lot of ups and downs come in. Going from 0 to 1 million, obviously very difficult, but a lot of folks make it there. But going from 1 million to 10 million is more difficult because you're trying to 10X a business that's already been in place for a while. There's a lot of moving parts already. So that's why a lot of people see this roller coaster trend.

It's still up to the right, but a lot of times there's a lot of, um, kind of tweaking and figuring out experimentation wise, exactly what you're good at, how you want to sell your product, how to actually impact and, uh, generate, you know, more demand for your product or service.