How can you 10X the valuation of your startup (via products) ?

In order to influence the valuation, first you need to get the baseline data around the factors determining the current valuation, such as -

1. Revenue

- What has been the last 2-3 years month on month revenue ?

- What has been the growth / degrowth ?

- What are the factors contributing to revenue ?

- What has been the reasons for growth / degrowth at various stages ?

-What is the average order value, retention and purchase frequency ?

2. Growth potential / Market size

- What is the Total addressable market ?

- What % of TAM can we realistically capture ?

- What is the overall market growth rate ?

- What are our USPs ?

3.Intellectual property / unfair advantages

• Are there any intellectual properties, trademarks, copyrights etc. that competition cannot replicate ?
• Any other factors that lead to price elasticity (i.e. can increase our margins without impacting sales)?4. Competition

• How many other players are in the same market and catering to the same customer needs ?
• What are their strengths and weaknesses 5. Stage of growth

• Companies with consistent track record to good growth command higher valuation 6. Unit economics , EBITDA etc.

• What are the direct fixed cost, direct variable cost , indirect fixed and indirect variable costs ?
• How much is the contribution margin (CM 1, CM2 and CM3)
• What is the current EBITDA ?
• What are the top 2-3 major sources of cost ?

Now that you have collected the baseline data/ metrics around the same, just 10X those numbers (i.e. 10X revenue increase, 10X cost reduction etc.) and set it as your goals.

Backtrack from there and list our what products / tech needs to be built in order to achieve the same (can think in OKR format at this stage).

Setup some hypothesis and experiments that enable you to gain more confidence and validate / invalidate the top hypothesis (i.e. riskiest assumption).

#productmanagement