Why It’s So Hard to Scale a Great Idea
hbr.org
To scale successfully, you need to determine not only how many people like your idea, but also what they’re willing to pay for it and, crucially, how much it will cost to provide. One strategy to escape the cost trap of scaling is to make sure you benefit from economies of scale Another strategy is
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Top Highlights
- To scale successfully, you need to determine not only how many people like your idea, but also what they’re willing to pay for it and, crucially, how much it will cost to provide.
- One strategy to escape the cost trap of scaling is to make sure you benefit from economies of scale
- Another strategy is to create models that don’t rely on top-tier talent. As you scale, finding and paying high-performers will become prohibitive
- When a seemingly promising idea loses efficacy or profitability as it expands, we call it a “voltage drop.” These failures to scale never happen because of one single reason.
- I’ve identified five causes, what I call “vital signs,” of voltage drops.
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Startups
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Toughts & Comments
Davide Mezzetti
Rating: ⭐️⭐️⭐️ Nice article exploring the most common causes of failure to scale businesses. Easy to read and straight to the point, a bit simplistic.
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