Enjoy doing things that don’t scale
As I help build a (stealth) tech startup which was recently accepted into the Y Combinator S20 batch, I took time to reflect on some of the most important things we did to reach this point. I ended on one concept that most of my efforts played into.
Doing something that doesn't scale means to do something manually. To put your time and energy towards a specific task to achieve an outcome that cannot be automated by a computer or program. Much of our company's early traction came because the first few team members took on the task of doing things that didn't scale to create the base upon which we are currently building. By doing things that don't scale, you are able to create more intimate relationships with your customers and deepen your understanding of how your company really works.
To get the ball rolling on a new business idea, you need one thing... a potential customer. And even though its a simple concept, getting your first few paying customers is never an easy task. Our team leaned into things that didn't scale, like showing up to potential customers' doorsteps with boxes of donuts in hand, to begin the sales process. Customers were pleasantly surprised to see us show up with treats, and were willing to listen to our pitch. If the pitch went well, we would begin walking the customer through our product, understanding their business needs, and making their first transaction on our platform. At scale, sitting down with every customer you acquire is an impossible task. At the inception of a company, sitting down with these individuals is a valuable time to learn about the best ways to solve their problems. At the core of your business, your mission is to solve your customers' pains.
After landing an initial customer to provide demand for your business, you need to have an adequate product, or supply, to satisfy their demand. In the case of a marketplace company, your supply is often tied to people. When dealing with supply in the early stages of a company, dedicating time to ensuring that your product relieves pain points for your target market is crucial if you are counting on your customers to return to your platform again. To ensure this quality, energy has to be put into screening, testing, and guaranteeing that the product you deliver is the product you've promised. At scale, large companies can't possibly spend several days analyzing each unit of supply. At the beginning stages however, double and triple checking that each unit of supply is able to exceed expectations is an ever-important action which you can take on the path to reaching massive volume.
Putting out fires is a common theme in early stage companies, as things often go wrong which you had not previously anticipated, and you cannot afford to lose a paying customer. Luckily for early stage companies, damage from these events can be mitigated by being able to reach out to customers in timely fashion and on a personal level. By having the leaders of our company be intimately familiar with every customer, we were able to redeem ourselves for unpleasant product experiences by immediately taking action on a situation and knowing what our client would like in return for another chance at using our business. Having these personal relationships allowed our team to learn from client experiences and retain customers by understanding how to effectively redeem ourselves. Each "fire" is also a hidden opportunity to gain insight into what needs to be ironed-out in your business processes, and what can be improved with the help of technology.
Finally, the essence of doing things that don't scale... having a hustler mindset of doing whatever it takes to get the job done. Does that mean you may have to spend an entire workday driving items from a client's business to a warehouse? Maybe, but that client will provide you with enough demand to keep the business alive another month. Does that mean you call every phone number in a website directory to find a potential lead? Maybe, but that lead will provide the first sales at your target margin. You may even have to fly a whole team of people out to an unknown city to ensure you can go above and beyond for a new customer.
Essentially, to get your company to scale, it is imperative to do things that don't scale. You cannot build a product, launch it, and expect the world to come to you. You have to get your hands dirty and push the company off the ground if you want a base upon which you are able to successfully scale. I enjoy doing things that don't scale as there is a sense of value being produced. There is no computer or program that can replicate the actions you take to achieve the outcome. There is a lengthy road ahead of our company, however having the right mindset of doing whatever it takes is the first step to head down that road.