Hockey Stick Growth for Startups

cartoon field hockey stick and ball
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One of the most common terms used to describe growth in a startup is a hockey stick. The idea is that things like users, page views, or revenue starts growing at a normal linear pace and then, once an inflection point is hit, growth takes off at an exponential rate. Here are a few things to keep in mind regarding hockey stick growth for startups:

  • The initial phase of linear growth can be for years before the right product/market fit is found and the market is ready
  • Startups with a network effort or strong viral nature are more likely to experience this type of growth
  • Growth will start to level off at some point and it’s important to be cognizant of when that’s on the horizon as high growth and slow growth present different types of challenges

Being part of a startup with hockey stick growth is an amazing experience that doesn’t happen too often. Startups should pay attention to their growth pattern and understand when the linear growth turns into exponential growth as well as when it turns back into linear growth.

What else? What are some other things to keep in mind about hockey stick growth?

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23 responses to “Hockey Stick Growth for Startups”

  1. […] In that light, consider making all your small websites structured like an (approximately) 20-page website, unless you know the project is a quick, one-off website, such as an information site for an upcoming event, or a page for your wife’s birthday. Plan for growth, but don’t plan for a hockey-stick growth curve. […]

  2. […] photo space for the foreseeable future. It is an absolute game changer that will soon experience hockey stick growth and be in the same league as Twitter / Angry Birds. I advise being an early adopter on this one and […]

  3. […] In that light, consider making all your small websites structured like an (approximately) 20-page website, unless you know the project is a quick, one-off website, such as an information site for an upcoming event, or a page for your wife’s birthday. Plan for growth, but don’t plan for a hockey-stick growth curve. […]

  4. […] Here, unless you are sure that the project is a one-time sites, such as a specific activities, or the information is for you stand a web page, wife birthday to consider in accordance with the above said small (about)20Page site to construction.For development plan, but don’t do itCurved sticks growth curvePlan. […]

  5. […] She urged everyone in the room to be scientific about getting costs down and revenue up: use a hockey stick graph for customer acquisition and know where you are on that curve, measure and analyze key values, […]

  6. […] Hockey stick-like revenue growth often occurs several years in, assuming things are successful, so if you start five or 10 companies simultaneously, you still have a long time to see good cash flow even after killing the ideas that aren’t working […]

  7. […] Hockey stick growth curves are a desirable path for startups. The idea is that growth is slow and steady, much like the base of a hockey stick, and then at some point it really starts to take off, much like the long part of a hockey stick. There’s another concept, escape velocity, that isn’t talked about as much but is still important. […]

  8. […] media. Pinterestillä on yli 16 miljoonaa uniikkia kuukausikävijää, joten todellisesta hockey stick -ilmiöstä voidaan puhua. Beta-vaiheessa oleva start up eroaa kilpailijoistaan myös siten, että se tuottaa […]

  9. […] proverbial hockey stick-like growth curve for startups has been talked about many times, including yesterday. That growth curve is rare, and even more […]

  10. […] that my goat cheese business idea had terrible profit margins and a questionable ability to reach hockey-stick growth, I got upset. I have been researching and scheming about goat cheese, and then online food, and […]

  11. […] I agree that large and loyal customer base is the brass ring for startups, but more often than not, a validated business model means not only revenue, but also competition.  In a world where “traction is the new IP,” the winning company will have to ensure that its customer and revenue acquisition efforts happen at speed and scale required to be first not only but to also stay first in the market.   To do this, the startup company’s execution of its customer acquisition and retention efforts must occur at a speed and a rate of growth that likely is akin to a hockey stick.  Sure this is possible, but it requires flawless execution and a whole lot of luck.  For most startup companies, finding the right product market fit takes a long time and hockey stick growth is rare. […]

  12. […] In that light, consider making all your small websites structured like an (approximately) 20-page website, unless you know the project is a quick, one-off website, such as an information site for an upcoming event, or a page for your wife’s birthday. Plan for growth, but don’t plan for a hockey-stick growth curve. […]

  13. Is Traction the New IP for Startups? Maybe Not for Yours. – ipstrategy.com Avatar

    […] I agree that large and loyal customer base is the brass ring for startups, but more often than not, a validated business model means not only revenue, but also competition.  In a world where “traction is the new IP,” the winning company will have to ensure that its customer and revenue acquisition efforts happen at speed and scale required to be first not only but to also stay first in the market.   To do this, the startup company’s execution of its customer acquisition and retention efforts must occur at a speed and a rate of growth that likely is akin to a hockey stick.  Sure this is possible, but it requires flawless execution and a whole lot of luck.  For most startup companies, finding the right product market fit takes a long time and hockey stick growth is rare. […]

  14. […] profit (as we say in our tagline ‘there’s more to life than hockey sticks’ (eh? What’s all this hockey stick business?). Although it needn’t be either one or the other. Study after study proves that happy teams […]

  15. Foursquare, Quora, Path: What Becomes Of The Underachievers? | TechCrunch Avatar

    […] fast … or suffer and eventually die. And the bigger you are, the harder it is to keep riding the hockey stick — and the harder you fall if you […]

  16. […] startup adventure there are numerous highs and lows. As much as people like to talk about hockey stick growth, it’s often more volatile at a day-to-day level. During the startup rollercoaster, there […]

  17. […] Hockey Stick Growth for Startups […]

  18. […] Hockey Stick Growth for Startups […]

  19. […] Hockey Stick Growth for Startups […]

  20. […] Hockey Stick Growth for Startups […]

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