“Do things that Don’t scale” – 5 Case Studies

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Have you ever heard of Paul Graham‘s philosophy on “do things that don’t scale“? It’s mandatory reading for startups. The idea behind this philosophy is that startups should prioritize actions that may not be scalable in the long term, but are crucial in the early stages of building a business. Today, I want to highlight five startups that have successfully followed Graham’s advice and built strong foundations as a result.

But before we dive into those examples, let me give you a brief reference to Breakthrough Maths. As you may know, we started this business in a local hall, just like some of the startups we are about to discuss, and were inspired by our students’ needs. Listening to our customers, we realized we needed to find a way to make maths more engaging for students and we began testing our ideas on a small scale.

Now, let’s get back to the examples. The first startup is Dropbox. This cloud-based file-sharing service began by manually acquiring new customers through direct outreach. The founder personally approached people at tech events, giving them a demo of the product and getting them to sign up. This approach was not scalable but it allowed Dropbox to get their first 5,000 users before they even launched. This early traction also helped them attract investors, which helped them scale the product.

The second startup on our list is Airbnb. The platform began by having the founders personally meet and host each of their early users. This approach allowed them to receive feedback on the product firsthand and improve it before scaling up. The personal touch also helped build a strong community of users who were passionate about the platform.

Next up is Zappos, a luxury shoe retailer. They focused on creating a personalised customer service experience by having their call center staff spend as much time on the phone with customers as needed, even if they weren’t actively buying anything. This not only built a loyal customer base but also helped them get valuable feedback on their products.

Fourth on our list is Buffer, a social media management tool. Instead of focusing on scaling the product, they manually acquired users at the start by participating in social media conversations and personally inviting people to use their product. This approach helped them build a loyal user base that helped further promote the product through word of mouth.

Lastly, let’s take a look at Groove, a helpdesk software company. They began by responding to every customer inquiry personally, even if it meant going beyond the scope of their product. This helped them build a strong reputation and loyal customer base that spread the word about the company.

In all of these cases, focusing on non-scalable actions allowed these startups to build strong foundations and attract early customers, which ultimately helped them grow in the long term. But it wasn’t always easy. Many of these startups faced challenges such as time constraints, limited resources, and even personal anxieties. However, they overcame these obstacles by staying focused on their mission, listening to their customers, and being willing to pivot when necessary.

In conclusion, the early stages of a startup are critical for building a solid foundation, and it’s important to focus on non-scalable actions that are crucial for generating early traction and customer loyalty. As founders, we should keep in mind that scaling comes after building a solid and loyal user base, which can only be achieved by doing things that may not be scalable in the long term.

Keep it simple, focus on your customers problems.

Documenting the high’s and low’s of life in a startup.