Doing things that don't scale is a concept of personally performing manual tasks as a founder, rather than relying on code or scalable processes. Founders should focus on building relationships and understanding customers, as doing things that don't scale allows for a deeper understanding of the business and its needs. Examples of companies that have successfully implemented this strategy include Reddit, DoorDash, and Cruise. In the pre-product market fit stages, the role of a CEO in a small startup is to do the low-status, hands-on work that is necessary for success. Founders being directly involved in customer support leads to valuable insights and a better product. Starting a company requires perseverance and enduring the challenges of the early stages. Working at a big tech company before starting a startup can be beneficial, but startups need to prioritize learning and experimentation. Founders need to mentally prepare themselves for the tough journey of entrepreneurship.
Do things that don't scale
Doing things that don't scale is a concept of personally performing manual tasks as a founder, rather than relying on code or scalable processes. This advice, often misunderstood, has been given to Y Combinator founders for a long time. Understanding how late-stage companies are run can help clarify this concept.
- Manual tasks should be done personally by founders, even if they can be automated.
- Founders should focus on building relationships and understanding customers.
- Doing things that don't scale allows for a deeper understanding of the business and its needs.
- Late-stage companies often have processes in place that founders should learn from.
Reddit
- Founders of Reddit used a non-scalable solution to create the illusion of user activity on the site
- They manually submitted links using different usernames to make it appear as though there were many users
- This tactic helped create the perception of a thriving community on day one of the launch
DoorDash
- DoorDash founders started by personally doing all food deliveries themselves
- This allowed them to interact with users and restaurant owners and provide high-level service
- Although not scalable, this strategy helped them establish their business
Cruise
Cruise is a company developing driverless cars, starting with a basic version retrofitted onto an Audi. The car had limited functionality, only working on the highway as adaptive cruise control. Despite simplicity compared to Google, Cruise began their journey towards driverless cars.
- Cruise aims to develop driverless cars
- Early days involved retrofitting an Audi with basic driverless technology
- Limited functionality, only worked on the highway as adaptive cruise control
- Car struggled to handle a shadow on the road
- Cruise started their journey towards driverless cars
What is the life and job of a CEO in the pre product-market fit stages?
In the pre-product market fit stages, the life and job of a CEO in a small startup is the exact opposite of the common perception of a CEO as a visionary and powerful figure. It requires a special kind of person who is willing to do the low-status, hands-on work that is necessary for the success of the startup. Many founders mistakenly try to emulate successful CEOs of large companies, but in reality, the role of a CEO in a small startup is to do the gritty, unglamorous work that smart people often prefer to avoid.
- The job of a CEO in the pre-product market fit stages is to do the low-status, hands-on work that is necessary for the success of the startup.
- The role of a CEO in a small startup is the exact opposite of the common perception of a CEO as a visionary and powerful figure.
- Many founders mistakenly try to emulate successful CEOs of large companies, but in reality, the role of a CEO in a small startup is to do the gritty, unglamorous work.
- It requires a special kind of person who is willing to do the gritty, unglamorous work that smart people often prefer to avoid.
Customer support
The most profound aspect of customer support is the importance of founders being directly involved in handling customer feedback and complaints.
Key points:
- Founders personally addressing customer issues leads to valuable insights and a better product.
- Startups have the advantage of founders being on the front lines of customer support.
- Incumbents often rely on researchers or outsourced personnel for customer surveys.
Criticisms
The most profound aspect of the text is that starting a company requires perseverance and enduring the challenges of the early stages.
- Friends and colleagues may mock or question founders' decisions to do things that don't scale.
- Starting a company is not easy and most people are deterred by the difficult early stages.
- The scarcity of successful founders is not due to a lack of ideas or funding, but rather a lack of individuals willing to endure the challenges.
Learn at Google - Before startup I need to work at a big company?
Working at a big tech company like Google before starting a startup can be beneficial, but it's important to understand the differences in mindset.
- Big tech companies prioritize scalability and designing solutions for millions of users.
- In the early stages of a startup, the focus should be on launching, not perfection.
- Startups need to prioritize learning and experimentation, even if it means doing things that are not scalable.
Mental prep - How do we help founders prepare their minds for this zone?
- Setting realistic expectations and being prepared for challenges and hardships is important for founders in the startup world.
- Founders need to have a strong mindset and the ability to maintain motivation, deal with high stress situations, and handle criticism.
- Many startups fail because founders lose motivation and become disheartened.
- Motivation is not about the difficulty of the challenges, but about how well founders were prepared for them.
- Founders need to mentally prepare themselves for the tough journey of entrepreneurship.
Wrap-up
The concept of "doing things that don't scale" is discussed in a video by Dalton Caldwell and Michael Seibel from Y Combinator. They emphasize the importance of taking unconventional actions and not copying larger competitors. Starting small and delivering value to even one customer is highlighted. Customer retention and measuring user engagement are also mentioned. Viewers are encouraged to read the essay on this topic by searching online.