How Does a 3x Founder Discover and Scale His Ideas?

Welcome to this edition of our newsletter! Today, we’re thrilled to feature Tim Grassin, a French-Canadian entrepreneur and founder of Next Big Wave. Tim has built and sold three businesses, including TendoPay, a successful FinTech company in the Philippines. Currently based in Thailand, Tim consults with B2B founders across Southeast Asia, helping them scale their businesses. In this newsletter, we’ll explore Tim’s journey, his service-first approach to product-market fit, the key pivots that led TendoPay to achieve true market success, and his advice to early stage founders. 

Who is Tim? 

Tim is a French-Canadian entrepreneur who has built and sold three businesses, including TendoPay, a FinTech company in the Philippines. After moving to Thailand, he began consulting founders in Southeast Asia on growth strategies, which evolved into a growth program for B2B startups. Tim is also a content creator, sharing insights on startup growth through podcasts and LinkedIn.

What is Next Big Wave? 

Next Big Wave is a growth program and community designed for Southeast Asian B2B startup founders aiming to scale their businesses to $1 million in ARR. Founded by Tim Grassin, it also features a popular podcast where Tim interviews regional founders, discussing emerging trends and business opportunities. The platform offers valuable insights and growth strategies for ambitious entrepreneurs.

What is Tim's Step-by-Step Approach to Finding Product-Market Fit?

"I'm going to offer the idea I have for the product, but I'm going to offer it as a service because it's a lot quicker and more efficient to go to market."

• Understand pain points: Tim starts by identifying the true pain points of his target ICP. He ensures these pain points are significant enough that customers are willing to pay for solutions).

• Validate hypotheses: He forms hypotheses around these pain points and validates them by checking if they "keep the ICP up at night."

• Market size: Tim ensures the pain points are experienced by a large enough group with business potential.

• Service-first approach: Instead of launching a product directly, Tim offers his idea as a service to quickly generate cash flow and validate his hypotheses.

• Competitive landscape analysis: He thoroughly examines competitors through forums, reviews, and other sources to identify gaps where competitors are underperforming.

• “Do it Better”: Tim believes in improving established business models, doing things slightly better or specializing in a niche, rather than trying to reinvent the wheel.

Why Does Tim Start with a Service Before a Product?

"Building a product requires a lot of resources, both time and money, whereas building a service can be as fast as just developing SOPs."

• Lower resource investment: Building a product requires significant time and money, while a service can be quickly launched with SOPs and minimal resources.

• Faster go-to-market: A service-based approach allows Tim to enter the market faster and start learning immediately.

• Immediate feedback: Providing a service helps Tim learn what works and what doesn’t, guiding future product development.

• Cash flow generation: Offering a service generates cash flow early, which supports product development, similar to companies like Basecamp.

• Roadmap clarity: By starting with a service, Tim can identify essential features for the product and avoid building unnecessary ones.

What Pivots Enabled TendoPay to Achieve True Market Fit?

"The product that the market really wanted, but the fit in terms of making money wasn't there."

• Initial Stage:

  • Assumption: Tim observed the success of "buy now, pay later" models in Australia and Europe and believed this could be replicated in Southeast Asia, particularly in the Philippines.

  • Early Strategy: Instead of building a full product, Tim developed a simple widget for e-commerce sites to test the concept. This allowed them to gauge interest with minimal investment.

  • Manual Process: Collected customer information via Google Sheets, manually reviewed applications, and facilitated transactions. This approach was labor-intensive but validated demand.

  • High Demand: Within six months, they attracted 500,000 signups, as people sought access to loans which were otherwise unavailable to them.

  • Challenge: Although demand was high, underwriting was challenging, mirroring banks' difficulties. The cost of acquiring customers increased, and profitability was not achieved.

• Pivots: 

  • Initial Pivot: Tightened underwriting criteria, but still struggled with making the model profitable due to high costs and low returns.

  • Successful Pivot: Transitioned to a salary-backed loan model. Partnered with employers to offer loans that were repaid through salary deductions, ensuring better repayment rates.

  • Benefits: Employers used this model as an employee retention tool, offering it as a financial benefit. Users enjoyed competitive interest rates and credit limits, making it attractive.

  • Outcome: Achieved true product-market fit with a sustainable, scalable model that ensured profitability. The approach fostered loyalty among both users and employers, leading to long-term success.

Why Is Founder-Led Sales Important Today?

"Creating a brand for yourself on LinkedIn as a founder is key."

• Acquisition Channel: It serves as a direct method to secure initial customers, allowing founders to personally tailor their sales approach and refine their pitch based on real-time feedback.

• Investor Engagement: By sharing their journey and insights, founders build credibility and relationships with investors, who gain deeper insights into the business beyond traditional pitch decks.

• Feedback Loop: Engaging with the target audience allows founders to gather essential feedback on pain points, ensuring that their product or service addresses real needs.

• Brand Authority: By consistently sharing insights and solutions, founders establish themselves as thought leaders in their field, enhancing their personal and company brand.

• Momentum Building: Regular interaction through content helps build traction and trust, leading to increased opportunities for growth and networking.

What Common Growth Mistakes Do B2B Founders Make?

"Focus your efforts on one GTM, maybe two if you have the time."

• Lack of Focus on ICP: Founders often struggle with not clearly defining their Ideal Customer Profile, leading to unfocused efforts.

• Too Many GTM Strategies: Managing too many go-to-market strategies dilutes effectiveness; it's better to concentrate on one or two that work best.

• Premature Global Ambitions: Trying to be global too soon can spread resources thin; it's crucial to establish a strong local presence first.

• Ignoring Regional Advantage: Founders often overlook the benefits of dominating a local or regional market before expanding globally.

• Competitive Oversight: Targeting North America or Europe means facing intense competition, which many underestimate.

What is Tim’s Secret Sauce in Being a Successful Commercial Founder? 

"Every single founder should be fluid and be involved in everything."

• Curiosity: Maintain a strong sense of curiosity to explore various aspects of the business. This helps in understanding different functions like product development, sales, and marketing, ensuring a well-rounded approach.

• Versatility: Being versatile allows founders to effectively communicate between teams. By understanding both product intricacies and commercial needs, they can ensure alignment and improve overall strategy.

• Customer Interaction: Directly engaging with customers provides first hand insights into their needs and pain points. This ensures the product is tailored to meet real demands, improving customer satisfaction and product relevance.

• Local Insight: Understanding cultural nuances is crucial when entering new markets. Adapting the product to fit local preferences can significantly enhance acceptance and success.

• Right Questions: Asking insightful questions helps uncover the true needs of customers. This leads to more accurate conclusions and better product development that aligns with customer expectations.

We hope Tim’s journey, from building TendoPay to creating Next Big Wave, has provided valuable insights into the importance of testing product-market fit through a service-first approach and the power of strategic pivots. His focus on understanding customer pain points, building scalable solutions, and leveraging local insights serves as a blueprint for B2B founders looking to grow sustainably. Whether you’re just starting out or scaling your business, Tim’s experiences offer key takeaways on adaptability and market focus. Stay tuned and subscribe HERE for more stories and growth strategies from leaders shaping the B2B landscape.