Growth in Turbulent Times

May 15, 2020

Guest

Brian Balfour

Guest

Andrew Chen

Join Andrew Chen, a general partner at a16z and former growth lead at Uber, alongside Brian Balfour, CEO of Reforge and ex-VP of Growth at HubSpot. They dive into how companies can reassess their growth strategies post-pandemic. Discover key metrics to track for adaptation and tactics for thriving through uncertainty. They discuss optimizing consumer journeys and adapting to changing behaviors while balancing growth needs against cutbacks. Plus, a look at how the entrepreneurial landscape has shifted since the 2008 crisis, pointing to new opportunities for startups.

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ADVICE

Fill the Lakes

When facing conversion headwinds, focus on building up potential, like 'filling lakes'.
Reduce friction, offer free access, and store monetization potential for when intent increases.

INSIGHT

Tailwinds: Means or End?

Early-stage startups with tailwinds should determine if the current surge is sustainable or temporary.
Use temporary surges as fuel for long-term growth by planning for an eventual transition.

ADVICE

Downturn Cuts

During downturns, re-evaluate paid marketing channels and cut those with poor CAC/LTV.
Prioritize cutting specialized functions, while retaining adaptable, versatile team members.

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In normal times, every company operates against some hypothetical growth model—a data-driven framework that describes how your product grows and how you acquire new users. These, of course, are not normal times. In the fallout from the pandemic, most founders and CEOs are in the process of completely revamping their growth models from the bottom up amid new and unpredictable consumer behavior.

This episode explores how to think about growth in turbulent times, according to two growth experts: a16z general partner Andrew Chen, who previously led the growth team at Uber, and Brian Balfour, formerly the VP of Growth at HubSpot, now the founder and CEO of Reforge, a masterclass in growth strategies (in conversation with host Lauren Murrow).

The discussion spans four sections: first, how to reassess your existing growth model, particularly when, as Brian says, the data is "completely messed"; next, we drill down into strategy and tactics for surviving the current crisis and talk about how founders can pursue growth even in the midst of widespread uncertainty and cutbacks. Third, we look ahead to discuss scenario planning and how leaders can forge a path forward. Finally, we zoom out and assess the big picture: how various categories of company may be impacted long-term, how this crisis compares to 2008 (and what that means for early-stage founders), and the industries and business models that are now prime for growth.

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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

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