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

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1. Colossal shifts in technology

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Computing power is increasing exponentially

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One insect brain

One human brain

All human brains

1920 2000 2080

Exponential growth of computing

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Entire industries being disrupted

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Technology adoption lifecycle

Innovators Early adopters Late majority LaggardsEarly majority

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Early adopters eat the late comers

Innovators Early adopters Late majority LaggardsEarly majority

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

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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

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EARLY ADOPTER

New ways to pay

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New ways to sell @sutherlandjamie

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1. Why Xero is unique

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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

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Lesson 1: go after a big market

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@

Small business is important & significant

to every economy

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90%

companies

~65%

employment

>85%

job creation

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Lesson 2: be mission-driven

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Improve the small business economy worldwide

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Lesson 3: create experiences people love

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@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

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

“

DEVAN SABARATNAM

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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

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

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A big difference between a good hire and a great hire

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Lesson 5: partner with purpose

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Connect businesses to an advisor

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

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Get product basics right before you enter

a new market

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Lesson 7: influence influencers

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Lesson 8: attach to a major brand

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SUPPLIERS &CUSTOMERS

BANK

PERSON

DESKTOPSOFTWARE

FINANCIALREPORTS

RECONCILE

The old way

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XERO

ADVISOR

FINANCIALREPORTS

SUPPLIERS &CUSTOMERS

BANK

The new way

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www.xero.com