One of my key observations is that for some companies growth seems to come easily, like guiding a boulder down a hill. These companies grow despite being disorganized, not executing “best” growth practices, and missing out on low-hanging fruit. I call these companies “Smooth Sailers” — companies that can increase their speed with just a little effort.
Growing at other companies feels much harder. It feels like pushing a boulder up a hill. Despite executing best growth practices, picking low hanging fruit, and having a great team, they still struggle to grow. I call these companies Tugboats — lots of effort, but low velocity.
What is the difference between these two types of companies? This macedonia mobile database is a question I’ve thought about for a long time and have pieced together a framework to explain the difference. This framework has a lot of implications for how you seek to grow and build your company.
It's not just a great product
The “go-to” answer to almost every question in a startup is “build a great product.” Every time I hear this answer, I feel unsatisfied. Building a great product is one piece of the puzzle, but it’s far from the whole picture.
Some great products never reach over $100 million.
There are also products that many people consider to be bad that are valued at over $100 million. If you’ve ever used Workday, you know what I’m talking about. At the time of this writing, Workday is valued at $20 billion.
If the above two statements are true, “building a great product” cannot be the answer to most growth problems. It’s certainly a starting point, but it’s not the answer.