Taking the Leap

Throughout the course of this quarter, our CS183C class has had the opportunity to gain valuable insights about blitzscaling directly from founders and CEOs all across the tech industry, from healthcare technology company Theranos’ Elizabeth Holmes to internet giant Google’s Eric Schmidt.

Blitzscaling refers to extremely fast-paced, triple-digit growth that feels uncomfortable. In the blitzscaling stage, operational and capital efficiency are sacrificed to achieve massive scale as quickly as possible. Blitzscaling can take a huge financial and emotional toll on a startup, so it is crucial for companies to carefully assess whether blitzscaling is the right move for them.

Based on the insights that I have gained over the past several months in CS183C, I think the most important factors to consider that should trigger the decision to blitzscale are the following:

1. The startup has developed a core customer base of people who love using the startup’s product. As Nirav Tolia, co-founder and CEO of Nextdoor pointed out, before you decide to blitzscale, you should pick an initial market and then overserve that market so that the users are really happy. Brian Chesky, co-founder and CEO of Airbnb, also echoed this sentiment, advising the class, “Do things that don’t scale — get 100 people to love using your app. Meet with them. Serve their needs.” Blitzscaling can then focus on bringing the essence of that great experience to thousands, if not millions of more customers.
2. The founders should have the emotional maturity to cede some control of the company to others — to delegate and to trust — in order to allow the company to grow and develop as blitzscaling kicks into full gear. At Google, founders Larry and Sergey ceded control of managerial duties to Eric as the company transitioned into the Tribe phase of growth. In turn, as CEO, Eric also allowed Larry and Sergey the freedom to continue pushing their vision for the company forward. “I knew it was Larry and Sergey’s company,” Eric pointed out, “and I acted that way.” In much the same way, as Google was going through rapid growth, the company to “let go” of some of their existing hiring practices and change the entire hiring process to correct the unconscious biases that were precluding the hiring of talented women at the company. coming to a point in which you acknowledge that you have to let go of something you care deeply about in order to allow it to grow takes a significant level of personal insight and self-awareness — but the payout can be huge.
3. The company should have a strong culture and a clear vision in place. These properties can serve as the glue that holds a company together when it hits hyperdrive, empowering employees to work effectively together toward a common end goal. During her Q&A session, Elizabeth Holmes pointed out, “If you have the values set in place, everything else will follow.” Similarly, LinkedIn CEO Jeff Weiner asserted, “We are our stories — that’s why vision, mission, and value proposition are so important.” With a strong culture in place, a startup has a better chance of overcoming the hurdles that it encounters during the blitzscaling process.

If you believe your company has the right pieces of the puzzle in place to start blitzscaling — brace yourself and take the leap.