https://nikhilsamuel.medium.com/how-to-build-a-growth-model-for-your-startup-1030b2fbafa8
Over the past month, I dug deeper on how to build a growth model, looking at some great resources and trying to understand how to build one myself. This blog post is a result of my study. I will show you how you can build a growth model for your startup. We will cover the basis —
A growth model is an equation that you can build to determine different variables in your startup’s business and how they work together and result in sustainable growth. You can see the basic structure of a growth model in this equation.
Source: Growth Equation proposed by Andy Johns
For me, the essential time to build a growth model is after your startup has achieved product market fit — when the product is itself bringing in an organic flow of users because of its strong core product value and magic moment.
There are many great resources suggested by some smart folks, but I will suggest three steps to building a simple growth model where you can quickly understand the main growth levers of your/a startup.
The Top of Funnel is the most straightforward part of the equation. This includes all your efforts to acquire users, capture traffic (SEO, PR, Email, Content Marketing) and convert them through the funnel at an increasing rate.
Source: AARRR Metrics — Dave McClure, 500 Startups.
The basic sub-equation of the top of funnel involves all the factors that are essential for the product’s conversion.