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Jean-Bernard MELET, CEO at Eldo

I think that everybody is now looking to reach profitability and efficiency towards growth. 

What allowed us to get close to it in 2023 is very counterintuitive as we managed to do it due to an M&A synergy and international development that usually takes too much time, money, and risk.

So, instead of sharing recommendations, I will share my 6 focuses for H2: 

  1. People: You might have to reduce people and it has been hard. You don’t want your top player to leave or the global equilibrium of the team’s motivation to explode. So, we invest a lot in: 

    1. Communicate with transparency

    2. Understand people’s needs and prioritize people topics

    3. Identify A players and secure them

    4. Improve cross-collaboration: business, ops. and product

As a result, in Q1, we got our highest ever employee NPS.

  1. Customer Focus: Double down efforts on customers from customer success to operations and/or product. There are 3 positive outcomes to it : 

    1. To reduce churn. A study carried out by Frederick Reichheld of Bain & Company found that increasing customer retention by 5% can increase profits by 25% to 95%.

    2. Generate upsell/cross-sell revenue, it can represent 30 to 50% of your revenue

    3. Generate free leads for your sales team. It will allow you to decrease your cost of customer acquisition

  1. Product Development: Double down effort on product: 

    1. Iterate fast

    2. Build viral loop/network effects

    3. Don’t forget scaling topics

In the past, we have been focusing too much on scaling growth but we generated technical debt. In fact, it is important to get your product ready for scale if you don’t want to be slowed down by your product and see your COGS increase too much with your growth. 

  1. Cash Flow Management: Find ways to collect more cash and faster : 

    1. Invoicing and collecting cash before your previous terms

    2. Increase your prices or add new options

It is much more difficult to find cash nowadays so better find ways to generate flow from efficiency and customers.

  1. Strategic partnerships: It takes a long time to settle, but if you already have, you should get the most from it. Partnering with other software companies allowed us to

    1. To reduce churn

    2. Generate leads

    3. Increase brand visibility 

  1. Leadership: More than ever as CEO you need to be close to your people, customers, social network, and investors. Leadership has never been more important. I recommend:

    1. Measuring the employee pulse on a quarterly basis and collecting feedback/questions before the company’s meetings

    2. Allocating more time to communicate with all counterparts

    3. Spending time making sure all C-level and managers are aligned and share the same messages with the same language elements

Florian Gendrault, Founder & CEO of Alleo

In a world where change is rapid, AI is prominent, and competition is fierce, it’s crucial to understand what makes your company unique. 2024 offers new opportunities, but only for those who determine their course with vision and determination. Given this context, it’s essential for startup founders to focus on core strategies that not only promote growth but also ensure sustainability.

My advice:

  • The right team turns challenges into opportunities. Seek individuals whose skills complement one another and encourage collaboration. Joint problem-solving not only leads to innovation but also strengthens the team’s cohesion, making your startup more adaptable and resilient.

  • Your product’s development should be directly shaped by market feedback. Engage early with your target audience to validate your vision. Use customer feedback to iterate quickly, ensuring your product genuinely solves user problems and fits seamlessly into the market.

  • Focus on a sustainable scale by ensuring a solid product-market fit. Avoid the temptation of rapid expansion without a stable foundation. Measure growth through customer retention and consistent revenue, which are true indicators of a healthy, scalable startup.

As we process through 2024, businesses must adopt a lens of honesty in evaluating their current standing. Uncertainty about your position warrants a phase of experimentation. Let these principles guide you as you navigate the remainder of 2024, steering not just towards growth but towards meaningful advancement.

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