Finding Your Startup's 'Magna Carta': Go-to-market Strategies

SDS 019: Clarifying How to Go-to-market

Hey! thank you for reading issue 019 of Startup Definition Sunday (SDS).

SDS is the newsletter for founders, bringing you clarity one actionable tip at a time.

SDS arrives every two weeks (you guessed it) on Sundays.

In every issue you can expect:

• 1 Definition of startup jargon

• 1 actionable tip you can implement right away

• 1 article on Africa tech that you should read

• 1 gift for founders

Let's dive in:

(P.S. I'll never sell your information, ever)

Hi - It's always such a pleasure to share each issue with you! If you missed the last issue, you can check it out here.

Before we dive into today's issue, Marge and I started something we think could be useful for founders - bi-weekly office hours to practice your 5-minute pitch.

Our Q3 sessions have begun. If you missed the most recent recorded session, you can catch the recording here.

The next session is this Wednesday (August 16) at 5pm WAT / 7pm EAT. Join us.

Let's dive into today's issue.

Last Friday, I found myself at an underground "Hip Hop @ 50" celebration in Nairobi with my friends.

The DJ set was absolutely amazing, and as I bobbed my head to Jay-Z's beats, I couldn't help but reminisce about one of my favorite Hip Hop moments:

I remembered when Jay-Z released his album 'Magna Carta Holy Grail' to 1 million listeners through Samsung Galaxy devices before the record was even available for sale.

It was a brilliant example of the power of distribution in a go-to-market strategy.

Now, I understand that neither of us is Jay-Z, but that doesn't mean your startup can't find other ways to reach users.

What is Go-to-market strategy?

Go-to-market: a plan that early-stage startups develop to outline how they will sell their unique selling proposition (USP) to customers. This strategy focuses on aspects such as target customers, channels, and unique advantages.

What strategies can founders use to go-to-market?

Nowadays, social media and targeted ads have revolutionized distribution.

But, relying solely on paid ads and social media can quickly become expensive for your go-to-market strategy.

That's why I want to share three other effective strategies I have seen:

Community-led growth: In today's market, investors prioritize both growth and retention. Building a sticky user base from day one through community-led growth is an excellent approach. By orienting your products around retention and building your brand based on the identities of your most loyal customers, you can create a strong community. Notion is a prime example of a company successfully using community-led growth. Check out this primer on how to build community-led go-to-market strategies.

Agent-led strategy: It's important to recognize that the infrastructure in Africa is still underdeveloped, with low internet penetration. Relying solely on the internet for your go-to-market strategy can limit your product's reach. An agent-led go-to-market strategy has emerged in Africa over the past decade. Moniepoint is a great example of a company that has successfully implemented this strategy to skyrocket growth. You can find more information in this insightful Afridigest article.

Referral programs: Uber's success story goes beyond turning an operating profit for the first time this year. When Uber initially launched, their referral program drove exponential growth, both in the U.S. and in other markets they entered. Referral programs can turn your customers into a cost-effective sales force. By building an impactful referral program, you can leverage the power of word-of-mouth marketing. If you're considering implementing a referral program, I've written a playbook that you'll find extremely helpful.

Although targeted ads may still be necessary at a later stage, these three approaches can deliver similar results at a lower cost during the early stages of your startup.

If you have learned something valuable today, consider joining SDS so you don't miss exclusive sections in future editions.

If you only read one thing this week, read this...

Last week, Nigerian startup Moove secured $76 million in debt funding, sparking increased interest among founders in the role of debt funding in scaling. Levi Cee has written an excellent article that delves into whether debt funding is the right choice for African startups today.

Here's why you should read it: By the end of the article, you'll gain a clear understanding of the considerations to keep in mind before pursuing debt funding as a startup.

Founder's Corner

As an investor, I know how challenging it can be for founders to get noticed by angel investors, especially without the right connections.

That's why I created an inbound form to allow founders to share their decks directly with me. It takes less than 5 minutes to complete. By breaking the mold and providing an alternative way for founders to connect with investors, I hope to help level the playing field.

Thank you for reading to the end of issue 019.

Until we meet again in two weeks, here's how we can stay in touch:

• 🐦 Find me on Twitter

• 💬 Hit me up on Linkedin

• 💌 Email me

• 🚀 Sponsor SDS (Reply to this email)

Let's chat again in two weeks,

Jasiel