top of page

How to Get Your First Customers | Startup School

Landing the first customers is rarely a matter of launching a polished product and waiting for demand to appear. In this Startup School session, Y Combinator group partner Gustaf Alströmer presents early customer acquisition as active, hands-on work: founders identify promising prospects, start conversations, demonstrate the product, ask for payment, and help each new customer succeed.

His broader argument is that early sales should not be separated from product development. The conversations required to win customers also reveal what the market values, which objections matter, and where the product falls short. For a young startup, selling is therefore not merely a way to generate revenue. It is one of the fastest routes to better decisions.

Do the Work That Cannot Yet Scale

Alströmer begins with Paul Graham’s well-known advice to do things that do not scale. The phrase can sound counterintuitive because startups are expected to pursue rapid, repeatable growth. Yet repeatability is difficult to design before founders understand why anyone would adopt the product in the first place.

At the beginning, seemingly inefficient activities can produce unusually valuable information. A founder might recruit users one at a time, configure accounts personally, answer support questions directly, or build a feature alongside a specific customer. These methods cannot serve thousands of accounts, but that is not the immediate problem. The immediate problem is learning how to serve the first few people well enough that they care.

Alströmer challenges the belief that a sufficiently good product will naturally attract customers. Advertising alone is also unlikely to solve the problem when the team has not yet established who the ideal buyer is or which message resonates. Early traction usually requires deliberate effort from the founders.

That effort becomes especially important after the initial excitement of a launch fades. Startups commonly experience a difficult period in which momentum slows, assumptions fail, and product-market fit remains uncertain. Founders cannot simply delegate their way through this stage. They have to remain close enough to customers to understand what is working and guide the company through repeated cycles of learning.

Why Founders Should Lead Early Sales

Many technical founders assume that sales requires an innate talent they do not possess. Alströmer offers a more practical view: founders are often well positioned to sell because they know the product, understand the problem, and can explain why the company exists.

A sincere interest in solving the customer’s problem can be more persuasive than polished sales technique. Founders can answer difficult questions, respond intelligently to feedback, and make credible commitments about the product’s direction. They also hear objections without the distortion that can arise when information passes through several layers of an organization.

Founder-led sales gives the startup control over a critical capability. If the founding team does not know how or why customers buy, hiring salespeople will not automatically fix the gap. Before building a sales organization, founders need to discover a workable process that others can eventually repeat.

Alströmer points to Brex as an example of this hands-on approach. Its founders began with a relatively basic offering and personally helped early customers get started. That direct involvement allowed them to learn from real usage while improving the product. The process was labor-intensive, but it connected product development to concrete customer needs.

Write Outreach That Earns a Response

Early sales often begins with a short email or LinkedIn message. The purpose of that first contact is not to explain every feature or close the entire deal. It is to earn enough interest for a conversation.

Alströmer recommends clear, compact messages written in ordinary language. An effective note identifies a relevant customer problem and explains how the product may help. It can include brief social proof, a link to the company’s website, and one unambiguous request, such as scheduling a short call.

Presentation should remain simple. Elaborate HTML, excessive formatting, long company histories, and dense feature lists can make an email feel like an impersonal marketing campaign. A concise message signals respect for the recipient’s time and makes the next step easy to understand.

Useful outreach typically answers four questions:

  • Why are you contacting this particular person?

  • Which problem do you believe they have?

  • Why might your product be relevant?

  • What specific action should they take next?

Personalization matters most when it demonstrates relevance. Mentioning a prospect’s role, company, or likely workflow is useful when it connects directly to the problem. Cosmetic personalization without a meaningful reason for contact is unlikely to improve the conversation.

Build a Simple, Visible Sales Funnel

Alströmer reduces the early sales funnel to a manageable sequence. First, create a list of plausible customers. Next, contact them. When someone responds, schedule a meeting or product demonstration. If there is genuine interest, discuss price and attempt to close the sale. Once the agreement is made, onboard the customer and help them begin using the product.

A spreadsheet may be sufficient at first. The team can record the prospect’s industry, company, role, name, email address, and LinkedIn profile, along with the current status and next action. A lightweight customer relationship management system becomes useful as activity grows, but the essential principle is visibility. Every serious prospect should have an owner and a clear next step.

The funnel does not end when a contract is signed. Onboarding determines whether a new customer reaches the value they expected. If buyers never adopt the product, the startup may mistake a closed deal for durable traction while churn quietly erases its progress. Early founders should therefore treat activation and retention as part of sales rather than as distant operational concerns.

It is also sensible to pursue the most reachable customers first. Personal and professional networks can provide warm introductions. Startups may be easier initial buyers than large corporations because their decision processes are often shorter. The ideal first customer is not necessarily the largest account; it is often an early adopter who recognizes the problem, can make a decision, and is willing to tolerate an evolving product.

Expect Rejection and Look for Early Adopters

Most prospects will not respond to cold outreach, and many people are not comfortable adopting an unproven product. Alströmer treats this as a normal property of the market rather than evidence that every unanswered message reflects a product failure.

The founder’s job is to locate the smaller group for whom the problem is urgent enough to justify action now. These buyers may have tried inadequate alternatives, developed awkward internal workarounds, or reached a point where the cost of doing nothing has become significant.

This distinction helps founders allocate their time. Repeatedly persuading a reluctant prospect can be less productive than finding someone who already understands the pain. Qualification is not only about determining whether the startup can serve a customer. It is also about deciding whether the customer has sufficient need, authority, and willingness to buy.

Charge the First Customers

Payment provides evidence that a product creates meaningful value. Alströmer therefore advises founders to charge from the beginning rather than treating free usage as validation of a business model.

A prospect may praise a product, agree to test it, and offer encouraging feedback without being willing to spend money. A pricing conversation forces greater clarity. It reveals whether solving the problem is important enough to compete with the customer’s other priorities.

Qualification meetings should include questions that expose willingness to pay, buying authority, urgency, and the process required to approve a purchase. If a prospect has no intention of paying, the founder should usually redirect attention toward buyers with stronger demand.

For business-to-business products, Alströmer favors mechanisms such as money-back guarantees or straightforward opt-out terms over indefinite free access. These arrangements reduce the customer’s risk while preserving the essential test: will someone commit money to the solution?

Pricing itself is a learning process. Founders frequently begin too low because they fear rejection. Alströmer suggests raising prices until prospects object but some still proceed. Pushback is not automatically a sign that the price is wrong. It may indicate that the company is finally testing the boundary between perceived value and cost.

Work Backward From the Revenue Goal

A revenue target becomes actionable only when it is translated into funnel activity. Every stage loses people: some prospects ignore the initial message, some decline a meeting, some attend a demonstration but do not buy, and some require follow-up before making a decision.

Suppose a startup wants ten new customers. If only a fraction of demonstrations become paid accounts, it will need more than ten demos. If only a fraction of contacted prospects agree to a demo, the outreach list must be larger still. Working backward converts an abstract ambition into weekly actions that founders can measure.

Tracking these conversion rates also identifies the real bottleneck. A low response rate may point to weak targeting or an unclear message. Strong meeting volume but few purchases may indicate poor qualification, an ineffective demonstration, an unsuitable price, or insufficient product value. Good sales records turn vague frustration into a diagnosable problem.

Alströmer cautions against reaching conclusions from tiny samples. Because rejection and drop-off are expected, a handful of messages cannot reliably prove that a market is uninterested. Founders need enough outreach to distinguish a genuine pattern from ordinary variation.

Product demonstrations should initially remain founder-led. Founders are best equipped to connect features to customer pain, answer detailed questions, and notice where the explanation breaks down. Studying successful outbound emails and early-stage sales resources, including material from Lenny Rachitsky, can help teams refine their approach, but examples should inform experimentation rather than replace it.

Turn Early Sales Into a Learning System

The central lesson is not that founders should perform manual sales forever. It is that they must earn the knowledge required to make sales repeatable.

Direct outreach teaches the team whom to target. Qualification reveals which needs are urgent. Demonstrations show which benefits deserve emphasis. Pricing tests the strength of perceived value. Onboarding exposes the distance between purchase and successful use. Each step produces evidence that can improve both the product and the go-to-market strategy.

Over time, founders can document the patterns, introduce better tools, automate routine work, and hire people to execute a proven process. But scaling before learning risks multiplying an approach that does not work. The first customers are valuable not only because they generate revenue, but because they help the startup discover what a scalable business might eventually look like.

Sources

Get started for free

A local first AI Assistant w/ Personal Knowledge Management

remio only supports Windows 10+ (x64) and M-Chip Macs currently.

Your AI Partner at Work
Get more done with remio

Plan. Create. Deliver.
All in one place.

bottom of page