The number one cause of startup death is premature scaling. In this session, we talk about the importance of customer validation and timing in your go-to-market strategy. The most effective growth strategy for your startup will depend on the market in which you operate and the stage of your business, and knowing which lever for growth you can pull. We’ll cover all this and more in Scaling Your Startup. Key topics: Growth strategy, calculating risk, accessing new markets

1. Scaling outside
Canada
A story about my experience

2. How can you grow?
• New Business Model
• New Markets
• New Segments
• Acquisition

5. Lessons
1. One market first
2. Enough Funding
3. Be Local

6. ©2015 HomeStars Inc.
Pain Points for Contractors & Homeowners
What Do We Solve?
Homeowners
• Validating the reputation of
contractors is very difficult
• Cost of failure is high
• Projects are unique and range from
leaky faucets to complete rebuilds
Contractors
• Effectiveness of traditional media
is diminishing
• Off-line word-of-mouth has
limited range
• Limited time and resources
6

7. Building leadership: Focus and rich UGC

8. ©2015 HomeStars Inc.8

9. Debt VC
Break-even
Angels
2007, 2009, 2012
2006
2014

10. My story

12. Scale Up Plan & Product Road Map
1. Dot Com: Build Toronto & Boston.
Redirect traffic from .ca to .com (Oct 12)
2. Go Wide: Canada and US rollout with v1.0
functionality (Jan 1 ‘08)
3. Go Deep: Functionality to enhance user
stickiness (Mar 1 ’08)

13. Ran out of money
Product: Tried to build too much
Marketing & Sales : Not enough
seasoned people on the ground.
Didn’t get TRACTION FAIL

14. “ There is only one metric that matters — TRACTION.
Traction is the rate at which you capture
monetizable value from customers.
Don’t ask people what they think of your idea.
Only customers matter.
Don’t ask customers what they think of your idea.
Measure what they do.”

15. Lesson # 3 - Be LOCAL.
Your positioning, and have
a dedicated team on the
ground.

16. Lesson # 2 - Have
enough FUNDS, if the
initial plan doesn’t work.

17. Lesson # 1 - Build
ONE MARKET first.
Get the fly wheel
turning.

19. ©2015 HomeStars Inc.19
What can we be the best in the world (Canada) at?
Good to Great: hedgehog concept
Connecting homeowners to the best contractors through our
rapidly growing, trustworthy and authentic content.
What do we care deeply and passionately about?
Helping homeowners make informed decisions, in order to have
the best home improvement experience.
What drives our economic engine?
LifeTime Value of a Customer - the projected revenue they will generate
Formula looks at ACV (annual contract value), COA (cost of acquisition) and Churn on the
denominator.

20. KEEP IT SIMPLE

21. “One in a row doesn't count;
two points make a line;
three points make a trend.”

23. Thank you !