Mike Rome’s Post

Most scaleups fail for the same 5 reasons. Are you making these mistakes? Scaling a startup feels like flying high. Until turbulence hits. I’ve seen this firsthand with loads of startups and scaleups, and no matter the industry, the same 5 mistakes trip them up. What’s scary? Some of the most damaging growth missteps are invisible until they’ve already done their damage. ⚠️ Here’s what I’ve seen over and over: 1️⃣ Vanity metrics The dopamine hit of traffic spikes and follower/visitor growth is real but meaningless without conversions. Don’t just chase numbers. Focus on metrics that truly move the needle: retention, activation, and customer lifetime value. 2️⃣ Forgetting your core value As the growth train speeds up, scaleups often lose sight of the “why” that made them unique. Scaling isn’t about doing everything. It’s about doubling down on what makes your product irreplaceable. 3️⃣ Onboarding calamities You don’t have a second chance to make a first impression. When onboarding is confusing, slow, or doesn’t highlight the key value of your product, users churn. Make activation effortless. 4️⃣ No feedback loop Feedback is oxygen for growth. If you’re not actively collecting and acting on user input, you’re flying blind. Build feedback systems into every stage of the customer journey. 5️⃣ Weak operational foundations Fast growth can destroy you if your backend can’t keep up. Think systems, processes, and people. Scaling chaos is a recipe for burnout. Get the groundwork solid before speeding ahead. Sound familiar? The good news is that these traps are avoidable with the right focus. Growth isn’t about doing more. It’s about doing the right things at the right time.

Short-term wins or long-term sustainability? It’s the question every bootstrapped SaaS founder faces. Do you sprint for rapid growth or set a steady pace towards lasting success? The truth is, you need both. Balancing these two isn’t easy, but it’s crucial for your startup’s survival. Here’s a quick breakdown of how you can do it: 1️⃣ Set Clear, ROI-Driven Goals: Focus on metrics that matter—like CLV and MRR. Make sure today’s efforts feed into your bigger vision. 2️⃣ Patch Up Leaks First: Fix bottlenecks that are causing churn before pouring more resources into user acquisition. 3️⃣ Optimize Your MVP: Start lean, gather feedback, and iterate based on real user needs. 4️⃣ Maximize Revenue from Existing Users: Use upselling and cross-selling to boost revenue without chasing new leads. 5️⃣ Stay Focused, Not Distracted: Evaluate trends carefully. Only adopt technologies that align with your vision and add value to your users. Pro Tip: A simple decision matrix can help you decide which features or trends are worth investing in. It’s about making smart, intentional choices that align short-term gains with your long-term goals. So, what’s your biggest challenge with balancing growth in your startup? Let’s talk about it!

𝟵 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗿𝗼𝗺 𝗙𝗼𝘂𝗻𝗱𝗲𝗿 𝗜𝗻𝘁𝗲𝗿𝗮𝗰𝘁𝗶𝗼𝗻𝘀 𝘁𝗼 𝗞𝗲𝗲𝗽 𝗬𝗼𝘂𝗿 𝗦𝘁𝗮𝗿𝘁𝘂𝗽 𝗼𝗻 𝗧𝗿𝗮𝗰𝗸 Over the past year, I’ve interacted with established founders, budding entrepreneurs, and aspiring visionaries. Among them, I’ve met a rare breed of founders who prioritize operational efficiency very early on. Many budding founders focus on developing their full product/service offerings at the very start. They seek investors to fund their initial ideas and grow teams. The standout founders take a different approach. They are laser-focused on running their businesses efficiently from very early days. Here’s what I learned from them: 1. 𝗗𝗼 𝘆𝗼𝘂𝗿 𝗺𝗮𝗿𝗸𝗲𝘁 𝗿𝗲𝘀𝗲𝗮𝗿𝗰𝗵. Understand your market thoroughly before diving in.     2. 𝗥𝘂𝗻 𝗰𝗮𝗺𝗽𝗮𝗶𝗴𝗻𝘀 𝘁𝗼 𝘁𝗲𝘀𝘁 𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝗲𝗻𝘁𝗶𝗺𝗲𝗻𝘁. See if the market aligns with your proposed offering.     3. 𝗔𝗶𝗺 𝗳𝗼𝗿 𝗮 𝗾𝘂𝗶𝗰𝗸 𝗠𝗩𝗣. Sometimes this means using off-the-shelf components or partially automated processes to speed up the offering.     4. 𝗣𝗶𝘃𝗼𝘁 𝗮𝗻𝗱 𝗮𝗱𝗮𝗽𝘁 𝘁𝗼 𝗮𝗰𝗵𝗶𝗲𝘃𝗲 𝗰𝗹𝗮𝗿𝗶𝘁𝘆 𝗮𝗻𝗱 𝗳𝗶𝘁. Be ready to adjust your MVP and strategy based on market insights and customer feedback.     5. 𝗕𝗲 𝗰𝗮𝘂𝘁𝗶𝗼𝘂𝘀 𝗮𝗯𝗼𝘂𝘁 𝘁𝗲𝗮𝗺 𝘀𝗶𝘇𝗲. Avoid rapid team expansion before fully understanding the scope of Product-Market Fit (PMF).     6. 𝗣𝗹𝗮𝗻 𝗮𝗻𝗱 𝗲𝘅𝗲𝗰𝘂𝘁𝗲 𝗮𝗿𝗼𝘂𝗻𝗱 𝗣𝗿𝗼𝗱𝘂𝗰𝘁-𝗠𝗮𝗿𝗸𝗲𝘁 𝗙𝗶𝘁. Refine your strategy and invest in development when you have a clear understanding of customer needs.     7. 𝗘𝗻𝗴𝗮𝗴𝗲 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗳𝗿𝗮𝗰𝘁𝗶𝗼𝗻𝗮𝗹𝘀/𝗮𝗱𝘃𝗶𝘀𝗼𝗿𝘀. You won’t know everything. Involve the right people to guide you effectively.     8. 𝗠𝗮𝗻𝗮𝗴𝗲 𝘆𝗼𝘂𝗿 𝗽𝗿𝗶𝗰𝗲𝘀 𝗮𝗻𝗱 𝗺𝗮𝗿𝗴𝗶𝗻𝘀. Adjust the price points for your offerings and move towards ensuring profitability.     9. 𝗠𝗮𝗶𝗻𝘁𝗮𝗶𝗻 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗱𝗶𝘀𝗰𝗶𝗽𝗹𝗶𝗻𝗲 𝗮𝗻𝗱 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆. Keep a close watch on revenue, spending, and investments, and ensure efficient use of resources to sustain growth.     When these steps are followed in the right order, full-fledged development only begins after truly understanding the customer. This way founders can avoid building unnecessary products and burning resources. By prioritizing the right steps at the right time, successful founders ensure their growth path is both sustainable and aligned with market needs. If you are a startup founder, make sure to remember these tips! Hit the save button. ----- 📢Hi I'm Prashantha. I provide technical guidance to early stage and growth stage startups to achieve stability and scale. If you are struggling with your technology stack, set up an discovery call with me.

Growth isn't a straight line, it's a process of constant experimentation. 📶 For startups and scaleups, standing still is not an option. The companies that grow the fastest are those that embrace a culture of experimentation, testing new strategies, learning from the data, and adjusting their course based on what truly works. In such a dynamic environment, playing it safe can hold your growth back. What drives the most successful companies is their ability to experiment quickly, fail early, and pivot in real time. Whether it's launching a new feature, testing a marketing campaign, or exploring a new market, each experiment brings valuable insights that move you closer to your goals. At LUP, we’ve developed a platform that not only helps you set and track OKRs, but also promotes experimentation as a key driver of scalable growth. Our AI-powered tool suggests experiments to optimize performance and keep your entire team aligned with the company’s objectives. Remember, success doesn’t come from following someone else’s path—it’s about creating your own through constant experimentation. Dare to try something new every day!

“If you build it, they will come” 🤔 Really? There is no ideal framework or way of how to achieve PMF. If there is one, all startups would turn into Unicorns. But 35-40% of all startups die for being unable to achieve product market fit. The main problem is that many product still go by Lean startup approach. Mark Andreessen criticizes methodology for their confidence that the great product will sell itself. “We see Lean Startup methodology being used inappropriately as an excuse to not take sales and marketing seriously. Founders tell us that all that matters is product, and sales and market will happen automatically. The “if you build it, they will come” mantra is not always an acceptable approach for those looking to grow”. When I found PMF narrative from Sachin Rekhi I was astonished by its effectiveness on the journey of PMF achievement. He chose 6 dimensions that every startup PM should focus because these are the most common reasons why product fails. 1. Problem to solve Reason to fail: when the problem is not acute enough. The question to ask: how unique and severe the problem to solve? 2. Target Audience Reason to fail: when the target audience we define is too large. The question to ask: how niche our auditory is to start now and what are their attributes? 3. Value Proposition Reason to fail: when value proposition is defined in terms of features to build instead of real benefits. The question to ask: what benefits would my target audience value? 4. Competitive Advantage Reason to fail: when there is a focus on short term only. The questions to ask: How the product will win against of competition today? How to establish competitive moat enabling a lasting PMF advantage? 5. Growth Strategy Reason to fail: when there is a too long focus on short-term traction channels, or too early on long-term growth channels. The question to ask: what channels will be the best to obtain the first users and what channel to choose for scaling. 6. Business Model Reason to fail: when we overlook pricing, cost structure and LTV. The questions to ask: what are the revenue sources, payment model, costs and average revenue generated by customer over his lifetime? And by building hypothesis around these dimensions, iterating them, we are increasing chances for PMF success. Safe, share! And ask questions for details!

Preparing for a Series A round is a crucial milestone, where investors move beyond the concept and look for proof that your business can scale. Unlike seed funding, Series A requires a balance of vision, traction, and foundational stability. Here’s what sets this stage apart and how to prepare: Traction Over Metrics Series A investors want evidence that your product has market fit, demonstrated by real growth in user metrics like Monthly Active Users and retention rates. Series A isn’t just about having data; it’s about showing growth and user engagement. Clear Revenue Streams At this stage, investors expect a defined revenue model. You don’t need to be profitable, but a steady revenue stream signals market demand. Ask yourself: Are your revenue channels scalable? Is there potential for additional revenue streams? A robust revenue model reassures investors of monetization potential. The Right Team Series A investors assess whether you have a team that can execute on scaling. This includes team members with the skills to tackle immediate needs and future challenges, especially in areas like tech, operations, and business development. Growth Potential Series A funding is about fueling growth, not just keeping the lights on. Investors will want to see a scalable business model. Emphasize your go-to-market strategy, any operational efficiencies, and a clear roadmap to reach a broader audience. With Series A, founders must prove their startup is ready for sustainable growth. By focusing on traction, revenue, team capability, and scalability, you can demonstrate readiness to take on the next big step in your startup’s journey.

Showing your pre-seed traction is tricky. It isn't just about the usual metrics. The earlier the investment, the more it's about people and less about Excel tables. So, I look for a strong team. Founders have to be experts in their industry. It's a huge advantage if they've sold a company before. I also look for energy, ambition, and curiosity in them. Next, there must be demand for the product. Pre-orders, early fans, and first deals show there's interest, and that the startup is solving a real problem. Having an MVP at this stage is essential. Then, the startup needs to prove it can attract and onboard users. Any signs of early customer acquisition, partnerships, or organic growth are good. Financial metrics aren't as crucial in the early stages as they are later on. Still, I expect to see realistic projections about potential growth and profitability. The market should be big and getting bigger. Without a growing market, the startup won't be able to scale or will face tough competition. A bit off-topic: It's totally fine if an early-stage startup pivots. 2, 5, 10 times – as many as it needs.

A Few Things I Learned from " Traction: How Any Startup Can Achieve Explosive Customer Growth" book : 1. Define your traction goal : How many new customers will you gain and what rate ? think about the three phases of startup growth : Phase 1 : Developing a product that has customer demand ( How many new customers will you gain and what rate ? ) Phase 2 : Marketing a product that people want ( How many new customers will you gain and what rate ? ) Phase 3 : Scaling your startup ( How many new customers will you gain and what rate ? ) The Bullseye Framework: Use a structured approach to identify the most effective traction channels. 3. Test Channels Early: Experiment with multiple channels to find what works best for your startup. 4. Prioritize Based on Potential: Assess traction channels based on their potential impact and ease of implementation. 5. Iterate and Optimize: Continuously refine your strategies based on feedback and results. 6.Measure Everything: Track metrics rigorously to understand what drives growth.

Ever wondered why some 𝘀𝘁𝗮𝗿𝘁𝘂𝗽𝘀 soar while others plummet? It's not just about the 𝗶𝗱𝗲𝗮. It's about the 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝗼𝗻. Enter 𝗦𝘁𝗲𝘃𝗲 𝗕𝗹𝗮𝗻𝗸's game-changing approach: 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁, paired with the concept of a 𝗠𝗶𝗻𝗶𝗺𝘂𝗺 𝗩𝗶𝗮𝗯𝗹𝗲 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 (𝗠𝗩𝗣). Picture this: A 𝘀𝘁𝗮𝗿𝘁𝘂𝗽 𝗷𝗼𝘂𝗿𝗻𝗲𝘆, not dictated by 𝗴𝘂𝗲𝘀𝘀𝘄𝗼𝗿𝗸, but driven by 𝗿𝗲𝗮𝗹 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗳𝗲𝗲𝗱𝗯𝗮𝗰𝗸. Before you even think about 𝘀𝗰𝗮𝗹𝗶𝗻𝗴, you're out there, 𝘃𝗮𝗹𝗶𝗱𝗮𝘁𝗶𝗻𝗴 your 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗵𝘆𝗽𝗼𝘁𝗵𝗲𝘀𝗶𝘀. It's not about what you think they need; it's about what they tell you they need. The 𝗠𝗩𝗣? It's your 𝗿𝗲𝗮𝗹𝗶𝘁𝘆 𝗰𝗵𝗲𝗰𝗸. The bare minimum to get 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗳𝗲𝗲𝗱𝗯𝗮𝗰𝗸. It's not your final product; it's your 𝗹𝗲𝗮𝗿𝗻𝗶𝗻𝗴 𝘁𝗼𝗼𝗹. But here’s the twist – it's not just about 𝗹𝗶𝘀𝘁𝗲𝗻𝗶𝗻𝗴. It's about 𝗮𝘀𝗸𝗶𝗻𝗴 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀. And not just any questions. Questions that 𝘂𝗻𝗰𝗼𝘃𝗲𝗿 𝘁𝗿𝘂𝘁𝗵𝘀. That 𝗴𝘂𝗶𝗱𝗲 your 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁. That 𝗽𝗶𝘃𝗼𝘁 your 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 towards 𝘀𝘂𝗰𝗰𝗲𝘀𝘀. Why do so many skip this 𝗰𝗿𝘂𝗰𝗶𝗮𝗹 𝘀𝘁𝗲𝗽? They're racing to 𝘀𝗰𝗮𝗹𝗲, blinded by their own vision, missing out on the 𝗴𝗼𝗹𝗱𝗺𝗶𝗻𝗲 𝗼𝗳 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 that could pivot them to success. But here’s the twist – it’s not just about listening, it’s about 𝗲𝗻𝗴𝗮𝗴𝗶𝗻𝗴 𝗱𝗲𝗲𝗽𝗹𝘆. Not just any questions will do; we need the ones that 𝗱𝗶𝗴 𝗯𝗲𝗻𝗲𝗮𝘁𝗵 𝘁𝗵𝗲 𝘀𝘂𝗿𝗳𝗮𝗰𝗲, 𝗴𝘂𝗶𝗱𝗶𝗻𝗴 our 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 and 𝗽𝗶𝘃𝗼𝘁𝗶𝗻𝗴 our 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 toward success. Why do so many overlook this 𝗲𝘀𝘀𝗲𝗻𝘁𝗶𝗮𝗹 𝘀𝘁𝗲𝗽? Often, they're in a hurry to scale, blinded by their own vision, and missing the 𝗿𝗶𝗰𝗵 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 that could steer them towards 𝘁𝗿𝗶𝘂𝗺𝗽𝗵. If you're as intrigued as I am to explore deeper into 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 and to craft 𝗠𝗩𝗣𝘀 that truly 𝗿𝗲𝘀𝗼𝗻𝗮𝘁𝗲 with the market, I’d love for us to 𝗹𝗲𝗮𝗿𝗻 𝗺𝗼𝗿𝗲 𝘁𝗼𝗴𝗲𝘁𝗵𝗲𝗿.

The hidden paradox of startup growth: More leads often break you faster. I see this pattern repeatedly: → Startup hits a growth ceiling → Team immediately says "we need more leads!" → Marketing budget increases → Problems amplify Here's what no one tells you: Scaling a broken system just makes it break faster. It's like pouring more water into a leaky bucket. The bigger the pour, the more obvious the holes become. The truth? Your growth ceiling rarely comes from lead volume. It usually comes from: ❌ Misaligned ICP ❌ Weak value proposition/offer ❌ Poor system optimization ❌ Broken customer journey Sometimes you need to slow down to speed up. Fix the engine before adding more fuel.