Declining rate of growth (relative to market and competition)Īs the company grows from a handful of people to 10s, then 100s, then 1000s of people, drastic changes in management need to happen.You stop blitzscaling when your business it outgrowing your current strategy.
Blitzscaling is used for a specific purpose for a limited time, after which you turn to fastscaling or another type of company growth. Startups who act quickly can evade incumbents who aren’t focusing on the space.īlitzscaling are like fighter jet afterburners - you don’t switch them on and never turn them off.Can somebody else realize this opportunity earlier than me? If yes, moving faster reduces risk of competition.Blitzscaling often doesn’t work if another company has first-scaler advantage.The mechanisms that confer first-scaler advantage include network effects, returns to data, economies of scale. These opportunities often involve positive feedback loops.Often, this is when a technological innovation upends existing markets, creating large opportunities that incumbents are not well-suited to capture.Market size and gross margins create enormous potential value, and there isn’t a dominant market leader.Airbnb CEO Brian Chesky said, “I can’t think of any other work that so perfectly captures the specific challenges – and opportunities – that a company faces at every stage of growth.” Adam Grant, the bestselling author of Originals and Give and Take, raves, “This is the best book I’ve ever read on how to grow a company rapidly - and when that’s even worth trying in the first place. The authors provide a step-by-step approach to this new model, which requires abandoning traditional business strategies and rules in favor of innovative operational and management practices. Their promise: “Blitzscaling” – done right – can catapult your $10 million company to a $10 billion company. To join giants like Facebook or Apple, they write, you need to embrace risk. The author’s professional accomplishments testify to their expertise: Reid Hoffman served as COO of PayPal, co-founded LinkedIn and is the host of the popular Masters of Scale podcast Chris Yeh, co-founder and general partner of Wasabi Ventures, has worked with more than 100 high-tech start-ups since 1995.
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