The startup paradox: grow big by starting small
One of the seeming contradictions in a company's journey is that, as Paul Graham, founder of Y Combinator, points out in a well-known essay, to get your company operating at scale, you first have to do things that don't scale.
Why does this sometimes seem like a contradiction? If we picture large, successful tech companies, it's easy to imagine all sorts of clever technology and automation that makes everything work automatically. How else would you serve thousands, if not millions, of users simultaneously? In the early days, it's easy to think of a new offering or feature, or even the very core of the business, as "that's too manual, we can't do that," and then keep building and guessing.
But the reality is that doing things that don't scale at first is the way many companies get to massive scale.
Brian Chesky, founder of Airbnb, shared a classic do things that don't scale example. In the early days, he and his cofounder went door-to-door to the first users of the platform, photographing apartments and asking customers what they could do better. They processed and uploaded photos manually, managing with spreadsheets and some hired help until they later automated the process.
Here are some of the advantages I've seen of starting with things that don't scale:
It doesn't have to be your whole business—it could be a new feature or tool. If your platform would eventually generate a dashboard automatically, maybe the first ones you just create by hand. If you need to manage people's availability, you can start with a calendar on a whiteboard.
Marketplaces that operate at thousands of transactions a day started with a spreadsheet and a phone.
Jeff Bezos packed and delivered the first books shipped by Amazon.
Hewlett-Packard famously started in a garage.
If your business is already at scale and you want to try something new, see if you can run it manually for a small group of users first. If you can make it work for them—fine-tuning out all the issues—then there's a good chance you can scale it more widely.
I've personally made the mistake of aiming for scale too early. At my first startup, we spent longer than we should have building what we thought was needed for a system that worked automatically, rather than just getting started—even if it meant taking more manual steps.
I've also been part of successful new products and services that we initially ran manually, using spreadsheets and people's effort, before fully automating them, sometimes many months later.
As Brian Chesky says: Do it until it hurts, then automate it away.