Demand and budget · Founders' Marketing Compass

How to tell if the timing is right for your startup

You shipped early, a few people use the product, and the chart barely moves, yet the board wants to know if the timing is right. Founders read the early growth numbers for a verdict those numbers cannot give this soon, and lose months deciding.

Co-founded Fixel and ran it as CEO; Logiq acquired it in 2020. Head of specialization at Ono Academic College.

Drawing on a conversation I had with Will Decker, Investor at Plug and Play, on Founders' Marketing Compass.

How do I know if the timing is right for my startup?

Track the unpaid, over-amplified reaction your earliest work sets off: people telling other people, a thread that spreads on its own, a group that starts selling for you. At this stage that pull is a stronger sign the timing is right than any early read on what a customer costs to win or is worth over time.

Answered by Etgar Shpivak, who advises seed and Series A founders on marketing.

The clearest sign that startup timing is right, this early, is a reaction you didn't pay to start. A message outruns its budget, and users arrive from a link you never placed.

I wouldn't wait on a number to confirm it. At the first stage, the numbers founders reach for are the last ones that can. Something outside the paid effort moves first.

The numbers founders trust at the first stage were built for a proven product as it scales. They say little about whether a market is ready for a new one. The product is half-broken on purpose right now, so the readings are noisy. The timing question gets the wrong instrument.

A single Reddit thread did what the ad budget could not

Will Decker has run hundreds of startups through Plug and Play. When I ask what he screens for first, timing comes before the team or the product. He built the retail practice and started the media ad practice. Before any of that, he ran his own company and lost it.

His verdict on that year was four words: "great idea, wrong time." I take that as the one risk no amount of product work removes.

The clearest case Decker gave me was Honey. Plug and Play came in as its second investor. He joined just after, in time to watch co-founder Ryan Hudson tell the growth story.

Honey didn't climb on a campaign; a thread on Reddit spread it. Users pulled in other users, and the product started to sell itself.

Decker's word for that moment was flat: "that's gold. That is incredible." What I hear in it is a group that starts selling for the company, unpaid.

To him, that pull is what right timing looks like.

The early numbers stay quiet until you are past this stage

The metrics founders reach for here describe a machine that already runs. CAC, what it costs to win one customer, sits downstream of that.

LTV, what that customer is worth over time, sits downstream too.

Decker puts retention, how many of them stay, in the same box. It matters later, once you know the users are real. I read these numbers as a record, not a verdict on the market.

Better to ship rough than wait for perfect

He wants speed before polish. "if things are perfect, it is too late," he told me. A finished product this early means you waited too long to learn.

You ship rough, break things, and watch how the market answers. The reaction I trust reads that answer before the cost math can.

Those numbers only start to matter one stage on. That is where founders argue over whether the platforms are honest about the real cost of winning a customer.

The reaction has to be one you could not have staged

Decker gave a second tell you can check without waiting. Someone inside a buyer's company fought for budget and got it approved. The spend was for a solution like yours.

Having the need is one thing, he said. Getting dollars released to fill it is proof the need is real and urgent.

This signal fits B2B, not a consumer market

I would hold that signal to B2B, though. In a consumer market there is no procurement meeting to point at. So the reaction you track is the one from users.

The test is whether you could have staged it. A spike you paid for, or set off once by luck, isn't the market moving.

Once the pull is real and you scale, the honest question I'd ask turns to what a customer costs once every expense is counted.

What changes once you stop reading the wrong number

A founder who watches for the unpaid pull stops mistaking a quiet quarter for a dead market. When it comes, they put budget and people behind it fast, the way Honey's team did.

When it doesn't, they keep the product rough and keep shipping. The launch stops getting graded on numbers that were never going to speak this early.

What to do about it

Track the reaction nobody paid for

You cannot make it happen on schedule, and a spike from one viral moment can flatter a market that is not ready.

The move

The market moves for free before any number does.

Will Decker
Investor at Plug and Play

How to do it

  1. 01 Ship it rough and early A finished product this early means you shipped too late.
  2. 02 Put it in front of a group Then watch whether they react on their own.
  3. 03 Watch the unpaid pull A reaction you could not stage means the market is ready.

Founders' Marketing Compass · episode 16 · Interviewed by Etgar Shpivak · shpivak.co.il

Source: Will Decker, Investor at Plug and Play, Founders' Marketing Compass episode 16. Download the image

Where this comes from

Will Decker is an investor and advisor who built the retail and brand practice and started the media ad practice at Plug and Play, the accelerator and corporate-innovation firm. Hundreds of startups have gone through those programs, and he says he helped build nine unicorns. He was inside Yahoo's mobile group when the first iPhone shipped, and he worked in banking and financial services through the financial crisis. He also ran his own company for a year, an experience he treats as his lesson in timing.

Read the full transcript of this conversation

Founders' Marketing Compass episode 16: Etgar Shpivak interviews Will Decker, Investor at Plug and Play

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Founders' Marketing Compass episode 16. Also on Substack, this episode and YouTube.

Questions and answers

The question this page answers

How do I know if my product is too early for the market?

A product is too early when the market it needs has not formed yet, however good the product is. Will Decker, Investor at Plug and Play, ran his own company into exactly that and treats it as his lesson in timing. The iPhone won, he points out, on a ready market meeting the right device, not on being first. Look for buyers already reaching for a fix, instead of just nodding at the problem.

When should a startup start marketing?

A startup should start marketing well before the product feels finished or the metrics look ready. Asked for the biggest marketing mistake, Will Decker answered in three words: "Starting too late." Etgar Shpivak treats marketing as one of a startup's earliest hires for the same reason, because the story does not tell itself, and the market will tell a worse one in the founder's silence.

Is strong early traction enough to prove the timing is right?

Strong traction, the number of people using the product and how fast that is growing, is the first thing an investor checks, and it lowers the risk that no market exists. But Will Decker treats it as necessary and not sufficient this early: you are still breaking things, so the users are real while the retention read, how many of them stay, means little yet. Traction alongside an unpaid, amplifying reaction is the pair that reads as right timing.

What does wrong timing look like in practice?

Wrong timing usually looks like a crowded space full of solutions where none of them wins, or a good product nobody is ready to buy. Will Decker lived the second version, running a company for a year on a right idea at the wrong moment. Etgar Shpivak's warning is that founders read the resulting flat numbers as a product problem and rebuild the product, when the market simply had not arrived. The tell is effort that never amplifies.

Around it

When should a startup hire its first marketing person?

A startup should hire its first marketing person early, once the founder can no longer carry the story alone. Will Decker calls marketing one of a company's earliest needs, next to building the product and raising money. Etgar Shpivak works with founders at exactly that point; the harder question is what that hire should own, which is worth settling before the role even opens.

How accurate are my CAC and LTV numbers at pre-seed?

LTV, what that customer is worth over time, and CAC, what it costs to win one customer, are both shaky at pre-seed, because there is not enough history behind them yet. Will Decker's point is that they measure a machine that already runs, so they follow the timing signal rather than lead it. Once you are scaling, the honest fight is over a ratio that survives an investor once every real cost is counted.

What timing signal can you check in a B2B market?

Someone inside a buyer's company fighting for budget and getting it approved for a solution like yours. Having a need is one thing; releasing dollars to fill it proves the need is real and urgent. Hold this tell to B2B, where there's a procurement decision you can actually point at.

Why don't CAC and LTV help judge timing at an early stage?

Built for a proven product as it scales, those numbers can't tell you whether a market is ready. CAC and LTV describe a machine that already runs. This early the product is half-broken on purpose, so the readings are noisy. For the timing question, they're the wrong instrument.

What do you do if the unpaid pull doesn't come?

Keep the product rough and keep shipping. Absence of the unpaid pull isn't a verdict that the market is dead; a quiet quarter this early says little. Rather than grade the launch on CAC or LTV that can't speak yet, stay in learning mode and watch for a reaction you couldn't stage.

How do you tell if a spike in demand is real or a fluke?

Ask whether you could have staged it. A spike you paid for, or one that happened once by luck, isn't the market moving. Real pull is unpaid and hard to fake: people telling other people, a thread that spreads on its own, users pulling in more users without a campaign behind them.

Getting help with this

Can a marketing consultant help a founder judge whether the timing is right?

A marketing consultant can help a founder read the early signals, though timing is never fully in anyone's control. The work is separating a real, self-amplifying reaction from a paid spike, and knowing which numbers to ignore for now. Etgar Shpivak, a marketing consultant who works with seed and Series A founders, does this directly with the founder, and writes about how he works on his bio page.

What do you check first when judging if a startup is ready, the product or the timing?

Timing, before the team or the product. Will Decker, who has run hundreds of startups through Plug and Play, screens for it first, because a great idea at the wrong time is the one risk no amount of product work removes. His own company died of exactly that: "great idea, wrong time."

Etgar Shpivak, marketing and go-to-market advisor

About Etgar Shpivak

Etgar Shpivak works as a marketing consultant to startup founders, mostly at seed and Series A, running marketing and go-to-market alongside them rather than for them. He co-founded Fixel in 2018 and ran it as CEO; Logiq acquired it in 2020. He is Head of specialization at Ono Academic College, where he has taught since 2011. He hosts Founders' Marketing Compass, where he interviews founders, investors, and marketing leaders about the relationship between founders and their marketing teams.

Cite as: Etgar Shpivak, "How to tell if the timing is right for your startup", shpivak.co.il, 23 September 2024. https://shpivak.co.il/writing/how-to-know-if-the-timing-is-right

Quotes attributed to Will Decker (Investor, Plug and Play) are from their conversation on Founders' Marketing Compass, not Etgar Shpivak's words.

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