9 Months Zero Code, $75M Raised | Shensi Ding, Merge

How did Shensi Ding acquire her first customers?

The journey to acquire the first customers can be extremely challenging. Initially, the company operated in stealth mode, focusing intensely on building the product. However, unveiling the product didn't automatically bring customers rushing in.

Painfully aware of this, they employed an exhaustive sales call strategy:

• Sales Call Marathon: From 10 a.m. to 9 p.m., endless calls were made to potential customers.
• Begging Stage: It often felt like begging people to take a chance on trying out the product.

This rigorous phase taught valuable lessons:

• A-B Testing: Various pitches were experimented with to gauge reactions.
• Understanding Questions: Tracking common customer queries helped tailor responses.
• Training Future Sales Staff: Insights gained enabled effective training of the first salesperson.

By consistently engaging with potential clients, valuable customer feedback was gathered, informing future sales and product strategies.

Why is market research crucial before building a product?

Before diving into product development, conducting thorough market research is essential. Shensi Ding's experience with Merge underscores this.

• Competition Analysis: Identify existing competitors and evaluate their success metrics. Understand why some might have failed or how you can perform better. This helps in avoiding innovation missteps.

• User Interviews: Engage with potential users to validate demand and willingness to pay. Gather direct insights into user needs, refining the solution.

• Industry Insights: Dive deep into the industry's workings on weekends. Recognize why some solutions missed the mark and what gaps exist for new entrants.

Without research, a startup risks building a product that might not fit the market. Validating your idea early saves time and resources, ensuring you meet genuine customer needs.

What is the key to scaling a startup team?

In scaling a startup, shifting from individual contributions to autonomous team operations is vital for success.

• Delegation: Each manager should successfully operate their team independently. This removes reliance on any single individual for the company's success.

• Autonomy: Teams need to function cross-functionally and independently, ensuring smooth operations without constant oversight.

For startups, especially in their early stages, this transformation is challenging but crucial for building a billion-dollar company. Restructuring from a "tribe" to a well-oiled team machine enables scalability and long-term growth.

How do co-founders balance friendship and business?

Transforming a friendship into a business partnership can be both rewarding and challenging.

Advantages:

• Strong Foundation of Trust: Knowing each other well provides a reliable foundation. Trust is crucial in decision-making and conflict resolution.
• Complementary Skills: Each brings unique strengths. Shensi is versatile in coding, sales, and finance, while Gil excels in software engineering and leadership.
• Enjoyable Work Environment: Shared values and camaraderie contribute to a positive work culture. This fosters a fun and engaging atmosphere for the entire team.

Disadvantages:

• Altered Friendship Dynamics: The relationship inevitably changes. While it deepens, personal time together may decrease due to business commitments.
• Work-Life Intertwinement: Like co-parenting a child, business discussions often dominate conversations. It requires effort to separate work from personal interactions.

Balancing friendship and business requires clear boundaries and open communication. More insights on balancing personal and professional life in a startup can be found in our related article.

Why is it important for founders to share their struggles?

Sharing struggles is vital for founders as it fosters a supportive environment during the entrepreneurial journey.

• Creating a Support Network: Establishing connections with fellow founders creates a safe space for discussing both triumphs and setbacks.

• Sharing Experiences: Opening up about challenges normalizes the ups and downs of entrepreneurship, providing comfort to others that they are not alone.

• Learning from Failures: By sharing failures, founders can gain insights from peers on how to navigate similar situations, enhancing their problem-solving skills.

A network is a crucial component in developing mental resilience for entrepreneurs, helping them thrive amidst the challenges of startup life.