8 Lessons in building a $2 billion company

8 lessons in building a $2 billion company

Jamie Sutherland General Manager, US Products & Solutions

@sutherlandjamie

1. Colossal shifts in technology 2. Why Xero is unique 3. 8 lessons learned

Agenda

@sutherlandjamie

1. Colossal shifts in technology

@sutherlandjamie

Computing power is increasing exponentially

@sutherlandjamie

One insect brain

One human brain

All human brains

1920 2000 2080

Exponential growth of computing

@sutherlandjamie

Entire industries being disrupted

@sutherlandjamie

Technology adoption lifecycle

Innovators Early adopters Late majority LaggardsEarly majority

@sutherlandjamie

Early adopters eat the late comers

Innovators Early adopters Late majority LaggardsEarly majority

@sutherlandjamie

Blockbuster → Netflix Borders → Amazon Yellow Cab → Uber Tower Records → Spotify, Pandora ABC → Hulu, Amazon video

@sutherlandjamie

Smartphone shipments dwarf PCs

0

50

100

150

200

250

300

Mar 95 Mar 97 Mar 99 Mar 01 Mar 03 Mar 05 Mar 07 Mar 09 Mar 11 Mar 13

QUARTERLY UNIT SHIPMENTS

PCs

iOS & Android

@sutherlandjamie

EARLY ADOPTER

New ways to pay

@sutherlandjamie

New ways to sell @sutherlandjamie

@sutherlandjamie

1. Why Xero is unique

@sutherlandjamie

What is Xero?

OTHER

XERO

Cloud accounting subscribers outside US

#1 Fastest growing financial application 2014

#1 Most Innovative Growth Company 2015, 2014

Lessons learned

@sutherlandjamie

Lesson 1: go after a big market

@sutherlandjamie

@

Small business is important & significant

to every economy

@sutherlandjamie

90%

companies

~65%

employment

>85%

job creation

@ @sutherlandjamie

Lesson 2: be mission-driven

@sutherlandjamie

Improve the small business economy worldwide

@sutherlandjamie

Lesson 3: create experiences people love

@sutherlandjamie

@Xero is just fantastic. So many problems, solved. Done. Love it. I’m actually enjoying getting ready for taxes.@peeja

After setup & training on Friday, the meeting ended w/ the client saying, "I looovvveee Xero!" #xerolove@WFUDeac

Just asked another client how they are enjoying their new @Xero file. They said "they don't like it, they love it"@kmiddlemis

@sutherlandjamie

I would rather face root canal surgery with no anaesthetic than do bank reconciliations.

“

DEVAN SABARATNAM

@sutherlandjamie

@sutherlandjamie

Xero however, actually makes bank reconciliations fun! There is an almost 'game' like quality to the whole process, and I am actually disappointed when it is all done.

“

DEVAN SABARATNAM

@sutherlandjamie

Lesson 4: if you hire clowns, you’ll end up with a circus

@sutherlandjamie

A big difference between a good hire and a great hire

@sutherlandjamie

Lesson 5: partner with purpose

@sutherlandjamie

Connect businesses to an advisor

Lesson 6: new markets aren’t always rinse and repeat

@sutherlandjamie

Get product basics right before you enter

a new market

@sutherlandjamie

Lesson 7: influence influencers

@sutherlandjamie

Lesson 8: attach to a major brand

@sutherlandjamie

SUPPLIERS &CUSTOMERS

BANK

PERSON

DESKTOPSOFTWARE

FINANCIALREPORTS

RECONCILE

The old way

@sutherlandjamie

XERO

ADVISOR

FINANCIALREPORTS

SUPPLIERS &CUSTOMERS

BANK

The new way

@sutherlandjamie

www.xero.com