This document outlines 8 lessons learned from building Xero into a $2 billion company. It discusses how exponential growth in computing power and technology is disrupting entire industries. The first lesson is to go after a big market like small businesses, which are important to every economy. The second lesson is to have a mission focus of improving the small business economy. The third lesson is to create software experiences that people love using. The remaining lessons discuss the importance of hiring great employees, partnering strategically, getting product basics right before expanding, influencing other influencers, and attaching to a major brand.

1. 8 lessons in building a
$2 billion company
Jamie Sutherland
General Manager, US Products & Solutions
@sutherlandjamie

2. 1. Colossal shifts in technology
2. Why Xero is unique
3. 8 lessons learned
Agenda
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3. 1. Colossal shifts in
technology
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4. Computing power is
increasing exponentially
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5. One insect brain
One human brain
All human brains
1920 2000 2080
Exponential growth of computing
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6. Entire industries being
disrupted
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7. Technology adoption lifecycle
Innovators Early adopters Late majority LaggardsEarly majority
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8. Early adopters eat the late comers
Innovators Early adopters Late majority LaggardsEarly majority
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9. Blockbuster → Netflix
Borders → Amazon
Yellow Cab → Uber
Tower Records → Spotify, Pandora
ABC → Hulu, Amazon video
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10. 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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11. EARLY ADOPTER

12. New ways to pay
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13. New ways to sell
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14. @sutherlandjamie

15. 1. Why Xero is unique
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16. What is Xero?

20. OTHER
XERO
Cloud accounting subscribers outside US
#1 Fastest growing
financial application 2014
#1 Most Innovative Growth
Company 2015, 2014

21. Lessons learned
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22. Lesson 1: go after a big
market
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23. @
Small business is
important & significant
toevery economy
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24. 90
%
companies
~65
%
employment
>85
%
jobcreation
@@sutherlandjamie

25. Lesson 2: be mission-driven
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26. Improve the small business
economy worldwide
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27. Lesson 3: create experiences
people love
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28. @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

29. I would rather face root canal
surgery with no anaesthetic
than do bank reconciliations.
“
DEVAN SABARATNAM
@sutherlandjamie

30. @sutherlandjamie

31. 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

32. Lesson 4: if you hire clowns,
you’ll end up with a circus
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33. A big difference
between a good hire
and a great hire
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34. Lesson 5: partner with
purpose
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35. Connect businesses to an advisor

37. Lesson 6: new markets aren’t
always rinse and repeat
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38. Get product basics
right before you enter
a new market
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39. Lesson 7: influence
influencers
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41. Lesson 8: attach to a
major brand
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44. SUPPLIERS &
CUSTOMERS
BANK
PERSON
DESKTOP
SOFTWARE
FINANCIAL
REPORTS
RECONCILE
The old way
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45. XERO
ADVISOR
FINANCIAL
REPORTS
SUPPLIERS &
CUSTOMERS
BANK
The new way
@sutherlandjamie

46. www.xero.com