The Power of Small: How Pocket and Warren Buffett Achieved Success

The Power of Small: How Pocket and Warren Buffett Achieved Success

In the world of business, there is a common belief that the size of a team determines the scale of its impact. However, two successful examples prove that this is not always the case. Pocket, the popular app that allows users to save articles and videos for later viewing, and Warren Buffett, the renowned investor and business tycoon, have achieved remarkable success with relatively small teams. Their stories shed light on the advantages of staying small and focused in a world that often glorifies growth and expansion.

Pocket, which reached 20 million users with just 20 employees, is a prime example of how a small team can make a big impact. Nate Weiner, the founder of Pocket, initially found it difficult to comprehend the idea of a large team. He questioned the need for a team of 60 people, wondering what they would work on when one person could handle the job. With a smaller team, Pocket was able to maintain a razor focus on what was critically important. This forced them to prioritize tasks and avoid getting distracted by future plans. The concentrated culture of Pocket, characterized by trust, scrappiness, and ownership, was preserved thanks to the small headcount.

The concept of culture is crucial for any organization, regardless of its size. In the tech industry, it is often said that 80% of a company's culture is shaped by its founder. This means that the founder's personality traits and values permeate the organization. Weiner likens company culture to stews rather than salads. By allowing a few choice ingredients to simmer together, a better understanding of what the culture delivers and lacks is attained. With a small team, these bonds and shared perspectives form more quickly, as there are no complex hierarchies hindering communication.

Another advantage of a small team is the ability to include people outside of the organization. Pocket's team believes in making things simpler for all involved. They focus on not reinventing the wheel and ensuring that their product is as simple and user-friendly as possible. This approach allows them to collaborate and integrate with external partners seamlessly. By keeping things simple, Pocket ensures that its users can easily adopt and utilize their product without the need for extensive learning or reinvention.

Warren Buffett, the legendary investor, also emphasizes the importance of staying within one's circle of competence. Buffett's circle of competence is the realm in which he has expertise and knowledge. He understands that straying outside this circle often leads to mistakes and poor decisions. Buffett's partner, Charlie Munger, extends this concept beyond business and into life in general. He believes that to achieve success, one must identify their own aptitudes and play within their circle of competence. In other words, focusing on what you are good at and avoiding areas where others have the advantage.

Defining your circle of competence is essential for personal and professional growth. It helps you avoid problems, identify areas for improvement, and learn from others. While the size of your circle is not as important as understanding its boundaries, it can be expanded over time. The key is to never fool yourself about where you currently stand and to be humble enough to say "I don't know." This self-awareness allows you to operate within your strengths and make better decisions.

In conclusion, the stories of Pocket and Warren Buffett demonstrate the power of staying small and focused. With a smaller team, it becomes easier to prioritize tasks, maintain a concentrated culture, and collaborate with external partners. Similarly, defining your circle of competence and operating within its boundaries can lead to greater success and personal growth. To apply these lessons to your own life and business, here are three actionable pieces of advice:

• 1. Stay focused on what is critically important: Prioritize tasks and avoid getting distracted by future plans. This will help you maintain a razor focus and achieve your goals more effectively.

• 2. Foster a culture of trust and ownership: Whether you are leading a small team or a large organization, concentrate on building a culture that values trust, scrappiness, and ownership. These values will help create a cohesive and motivated team.

• 3. Define your circle of competence and operate within it: Identify your strengths and areas of expertise. Focus on playing within your own circle of competence and avoid areas where others have the advantage. This will increase your chances of success and minimize the risk of mistakes.

By incorporating these principles into your life and business, you can harness the power of staying small and focused, just like Pocket and Warren Buffett. Remember, success is not always determined by the size of your team or the breadth of your knowledge, but by your ability to stay true to yourself and make the most of your unique strengths.