How to Eat an Elephant, One Atomic Concept at a Time - kwokchain

How to Eat an Elephant, One Atomic Concept at a Time - kwokchain

Scaling a new platform or company is no easy feat. Without a substantial user base and ecosystem of add-ons, it's challenging to attract developers and meet the needs of users. This is why platforms are so enduring – they understand the importance of higher-level understanding and adaptability. One source of change in a market is when customers themselves change. Their needs evolve, and new types of users emerge, leading to the discovery of new atomic concepts that can thrive in these transitions.

When customer needs rapidly change, incumbents often struggle to adapt, while startups have the opportunity to become compelling contenders. Legacy companies resist changing core parts of their products for every new use case, as it is costly in terms of work, money, and attention. However, occasionally, a small use case grows into something large enough to support its own company.

The best products align with customers' workflows and match their abstraction level – not too high to be unusable, but not too low to be difficult to use or extend. Each company has its own unique atomic concepts that cater to specific customer needs. For example, Figma focuses on collaborative design processes, while Canva offers easy-to-use templates and components.

Emergent use cases and new customer types lead to the development of new atomic concepts. These new workflows and different customers have different priorities than existing customers, making them ideal targets for startups. Incumbents often resist change, but startups are nimble and can adapt their products to meet the evolving needs of these new customer types.

Building for collaboration is crucial for companies like Figma. It requires technical expertise and a deep understanding of new technologies. Figma had to rethink its entire company, including pricing models, distribution models, and sharing form factors. On the other hand, Canva's strength lies in its ecosystem of add-ons, which allows it to address the diverse needs of its customers. This ecosystem makes it possible for each customer to personalize their use of Canva according to their specific use case and aesthetic preferences.

Treating marketplaces as first parties offers additional benefits. It increases the value of the product and cements platform network effects. However, companies often struggle to navigate these questions because customers themselves may not have a clear understanding of what they want. The best companies introduce better atomic concepts and help push their customers forward.

An ecosystem creates both defensibility and extensibility for a company. Going multi-product or becoming a platform is the key to compounding into a more meaningful company. Founders often underestimate the complexity of their products and the challenges of communicating their vision to outsiders. It is crucial to have strong atomic concepts and regularly refactor them to maintain clarity.

When it comes to scaling, it's not just about the will to succeed. Experience plays a role, but even experienced leaders have to accept that their past experiences may not directly translate to a new startup. Scaling requires the ability to change, and the difficulty lies in why changing is hard.

Changing your actions alone is not enough; you need to change the belief system that generates those actions. Reinventing your core beliefs is the key to scaling. This process involves letting go of old beliefs and embracing new ones. While it may involve some grief, it creates fertile ground for personal growth and enables you to scale.

Surrounding yourself with good leaders and learning from them is often seen as the path to becoming a better leader. However, it's essential to choose the right role models and learn what to learn from whom. Authenticity is also crucial in leadership. People want to know who you really are, so embracing your quirks, passions, and style can make a significant impact.

Authenticity also involves being vulnerable and sharing your struggles. People appreciate authenticity and can sense when someone is genuine. Intuition is another valuable tool in scaling. Dismissing your intuition means ignoring valuable data that can guide your decision-making process.

Having faith in yourself is the biggest leap of faith when it comes to scaling. It's essential to believe in your abilities and not assume that you can't scale just because you haven't done it before. Embrace the struggles and cherish every moment of success, as these are the moments that shape you and your company.

Before concluding, here are three actionable pieces of advice:

1. Regularly revisit and refine your atomic concepts. Clarity is crucial for both customers and employees, and strong atomic concepts provide a solid foundation.

2. Embrace change and reinvent your core beliefs. Scaling requires the ability to adapt and let go of old beliefs to make room for new ones.

3. Be authentic and vulnerable. People appreciate leaders who are genuine and transparent about their struggles. Sharing your journey can build trust and authenticity.

In conclusion, scaling a platform or company requires a deep understanding of atomic concepts, the ability to adapt to changing customer needs, and the willingness to reinvent core beliefs. It's a challenging journey, but by embracing change, being authentic, and having faith in yourself, you can achieve remarkable success.