Framework

Early Growth Allocation

TL;DR

Monthly assessment to ensure resource allocation stays aligned with survival priorities.

Monthly assessment to ensure resource allocation stays aligned with survival priorities. Tracks runway, current allocation percentages, reality check questions, and limiting factors.

When to Use Early Growth Allocation

Run monthly during Years 1-4 to ensure resource allocation matches survival needs.

How to Apply

1

Record Current State

Document runway remaining and current stage (0-6, 6-12, or 12-24 months)

2

Calculate Current Allocation

Determine % to Product/Engineering (target 40-50%), Customer Acquisition (20-30% pre-PMF, 30-40% post-PMF), Infrastructure (20-30%), Other

3

Reality Check Questions

Answer: Over-investing in growth before PMF? Starving quality for growth? 6+ months runway? >50% on moat-building? Can explain strategy to team?

4

Identify Limiting Factor

Check one: Product quality, Customer acquisition, Infrastructure, Cash runway, or Team capacity

5

Plan Adjustments

Document what changes for next month based on limiting factor

Early Growth Allocation Appears in 1 Chapters

Framework introduced in this chapter

Related Mechanisms for Early Growth Allocation