We built MakeSpace’s logistics systems and customer applications (to see all of your items in storage in beautiful photography) in the first year. Then we launched our service in NYC and in just one year captured 2% of all new storage customers in our target demo in just one year with almost no marketing budget.
How did we achieve these initial results? We offered a service that has a net promoter score of 87 placing us higher than such great brands as USAA, Costco, Apple and Amazon. Our churn is incredibly low giving us a projected lifetime customer value that extends multiple years.
We have now announced that MakeSpace is available in Chicago and Washington D.C. with further markets being announced later in the year but plans to expand our facilities are already under way. In year one we cracked 7-figure ARR (annual recurring revenue) and we plan to approach 8-figures this year.
This has been a great start we wanted to push harder. If you’re already at 10 – where can you go from there? Where? What if we could turn the dial to 11?
We started by beta testing ephemeral photos. Sure, we already had a beautiful app that shows you your items in storage. But what if we could make those photos disappear like SnapChat? That tested well, but it seems the press liked SnapChat better.
So we began testing livestreaming your storage bins. Each bin could broadcast what it was doing in storage live at any time? If you stored things that might grow you could see their status? Your beloved dolls & toys in storage could feel like they were right next door. We initially launched this test as MeerSpace but people didn’t seem to get the reference. And it seems that most people weren’t storing living plants or animals.
And we needed to go to 11.
Last week Fred Wilson and I sat down in Santa Monica for an hour+ discussion with the video cameras rolling.
One of the questions we discussed was, “How much capital should a startup raise?” Fred & I are both in agreement that there is a tension between capital constraints and creativity. In his words,
[in some instances] “because lots of capital is available, the company takes on the capital and that ends up resulting in no constraints on decision making and so the company decides to do five things in stead of just one.”
Here is a three-minute video with Fred answering this question. I promise it’s worth watching.
We also spoke about what it takes to be an effective board member. On the one hand, I often find that some board members are seemingly reading the board materials on the fly and don’t have a firm grasp of the business fundamentals. On the other hand some board members like to tinker in the running of the business.
I love Twitter.
So far I’m loving Meerkat, too. It’s brand new but the enthusiasm that’s been seen for such an early product is truly awesome. I ran a VC AMA (ask me anything) last Monday on Meerkat and had > 1,000 simultaneous people asking me questions. The energy was electric so I’m going to do it again this coming week.
You may have read that Twitter has now made it harder for Meerkat to operate. As a user I felt immediately frustrated by this move and said so, in stead wishing that Twitter would win based on innovation.
If Twitter believes @periscopeco is a better product why not just try to win on that basis? They already have home court advantage
— Mark Suster (@msuster)
I write about sales often both because it’s the lifeblood of any organization and because in my experience it is the area in which more startups are least experienced or inclined. I also write and talk about it frequently because raising capital is a part of sales and this is important for entrepreneurs to understand.
To make it simple and easy to remember – there are three basic rules of sales:
1. Why Buy Anything?
2. Why Buy Me?
3. Why Buy Now?
This post will cover the first.
If you ask any experienced sales leader they’ll tell you there are three things to know about being effective at sales: Qualify, qualify, qualify. This is simply because sales people have limited time and can’t afford to waste time with anybody who isn’t likely to buy from them in the near term.
But how do you qualify?
Do you have a problem I could solve?
The starting point is to ask yourself whether the person you’re dealing with has a problem that is solved by the solution you offer. If they don’t – you simply won’t sell anything. That’s why many great sales starts with generating inbound marketing leads.
Ok. If you work in tech this week you’ve no doubt heard much of this new app called Meerkat.
In case you’ve spent the week living under a rock, Meerkat is an app integrated (currently) with Twitter in which if you click on the link of somebody who shares a “Meerkat Stream” you will be transported into a live session of their phone streaming. You can also watch in the Meerkat app linked above and participate in a realtime conversation with other people in that particular stream.
Meerkat is magical.
Let me get this out of the way: I’m not an investor in Meerkat. And given how quick Silicon Valley throws money at people at things that have rapid and massive adoption (Turntable.fm, Yo!, Ello, Secret, etc) I am not likely to become an investor. I state that so you can take what I say next a little bit more seriously.
People are addicted to the experience in a way I haven’t seen since the early days of Twitter or Quora. Now, I’m not saying that it will last, I’m not saying that there aren’t other alternatives, I’m not saying that Twitter won’t try to squash them for riding on their back of their social graph.