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Tag: Business Growth

  • Blitzscaling: Grow a High-Value Business at Lightning Speed

    Blitzscaling: Grow a High-Value Business at Lightning Speed

    No one understands startups and how to make them grow at lightning speed better than Reid Hoffman. The businessman was an executive at PayPal when it first started out and then went on to start LinkedIn. Hoffman has since invested in several quick-growing companies through his Greylock Partners.

    Hoffman’s success has earned him the moniker “startup whisperer of Silicon Valley.” He also coined the term “blitzscaling,” a groundbreaking concept that allows entrepreneurs to quickly grow their companies and stay ahead of their rivals.

    What is Blitzscaling?

    A blitz is defined as a sudden attack or a concerted effort, and it’s those ideas that are behind the principle of blitzscaling. Blitzscaling is the concept of building a company quickly in order to serve a large market, usually a global one.

    Hoffman describes blitzscaling as a form of high-impact entrepreneurship, the kind that generates a lot of jobs and affects other industries.

    One of the best examples of blitzscaling is Amazon. In 1996, Jeff Bezos only had 151 employees and a revenue of about $5.1 million. Three years later, the company had 7,600 people and generated a profit of $1.64 billion. Despite criticisms and people advising against it, Bezos pushed for concepts like one-day deliveries and cloud storage and invested on these ideas. The company’s profits are not what stakeholders expected at times, but there’s no denying that the company has basically defined eCommerce.

    How Dangerous Is Blitzscaling?

    There are untold rewards in blitzscaling, but there’s also a lot of danger and challenges. To a lot of people, blitzscaling seems to be the opposite of everything that’s taught in business school. Hoffman actually likened the strategy to the blitzkrieg campaigns of World War II. Soldiers carry only what they need, they move quickly, surprise their enemies, and emerge victorious.

    Similarly, startups utilizing this strategy have to move swiftly. Therefore, they take on more risks, like getting the right people for the job. The talent or skill set a company requires changes as it grows. Employers need to pick the people who are ideal for the moment, and not someone they necessarily think will be effective once things settle down.

    The need for speed also means that companies have to be willing and prepared to launch a product even if it’s not perfect yet. The goal is to be the first to stake your claim and get immediate feedback that will be used to make improvements. Business would also have to neglect certain aspects of the business. Hoffman admitted that as PayPal was growing, they ignored customer complaints and just concentrated on improving their product.

    Another challenge is implementation. A big company like Microsoft can easily finance its growth, but startups have to convince investors to put money on them. Unfortunately, it’s easier to sweet talk investors if they know their gamble will pay off, and that’s not something that blitzscaling can guarantee. Blitzscaling also requires more money, and the company has to place some of its capital in reserve so they can recover from the mistakes made.

    Why Do Entrepreneurs Blitzscale?

    As an entrepreneur, you want to corner the market. Blitzscaling is a great way for doing this. Being the first in the niche to scale means your company will have a “first-scaler advantage.” Other networks or companies would recognize you as the leader. Once you have established that, getting the talent and investors you need becomes easier.

    Blitzscaling also gives entrepreneurs the element of surprise. By scaling at lightning speed, a brand can bypass exclusive niches and create breakout opportunities. Take into account Slack’s impressive growth. The company took bigger companies like Microsoft and Salesforce by surprise. It also gave Slack the chance to set the pace and force its rivals to try and catch up with it, which resulted in its competitors having less time to develop and implement a counter-attack.

    The goal of blitzscaling is to hit the market as hard as you can and make enough buzz to draw the attention of talented people and interested investors. However, the strategy brings with it great risks so make sure you weigh that against what you hope to achieve.

    [Featured image via Pixabay]

  • CEOs Are Not Taking Advantage Of All Their Assets

    The 10 Company and Gotham Research Group have released the results of a new study that suggests CEO’s are not capitalizing on the important roles blogs play in building and maintaining brand status and recognition. Many blog writers are frustrated with the lack of communication coming from the top-end of organizations. Experts say this lack of communication between business leaders and bloggers represents a huge missed opportunity for organizations to promote and disseminate vital information.

    Valerie Di Maria, Principal and co-founder of the 10 company commented on the relationship between CEO’s and bloggers:

    “The frustrations that bloggers expressed are real and important, and can be remedied with a strategy of inclusion,”

    “CEOs and their Chief Communications Officers need to make sure they put a monitoring program in place, read and occasionally comment on the stories/posts of key bloggers in their industries -being sure to focus on those bloggers with the most influence and journalistic integrity- develop relationships just like they do with traditional journalists, and arrange in-person backgrounder sessions. It’s an opportunity to create a real dialogue with the blogosphere. As one blogger said, ‘it’s tough to trash someone you’ve gotten a note from.’”

    Blogs are an important sources of information for many business savvy people who are too engrossed in the enterprise world to waste their time with general publications. CEO’s and other executives need to take full advantage of these insiders and work with bloggers to promote their organizations in a positive way. If they continue to take a hands-off approach they could be missing opportunities to grow interest in their products and services.

    Here are some key frustration bloggers have with CEO’s in general:

    * Lack of appreciation for the power that bloggers have today. Bloggers believe their influence already rivals that of traditional media journalists and is likely to grow over time. Said one survey respondent, “I get a lot more eyeballs than anyone writing for a paper.”

    * Lack of respect. Bloggers believe that CEOs and their senior communications staff do not pay sufficient attention to the blogosphere and are too slow to respond to requests for information. “It’s amazing,” said one blogger, “how could they not be watching what we are writing about them?”

    * Lack of direct access. Bloggers don’t expect full access, but believe an interview once or twice a year is reasonable. They feel they are given less access than traditional media.

    * Excessive control by the communications staff. Although bloggers understand the need and desire for CEOs to avoid mistakes, they believe CEOs and their staffs go too far in attempting to manage the media, and in the process, come off as artificial and scripted. Said one blogger: “It’s important for at least some of the real person to come through—that’s what the best ones do.”

    Dr. Jeff Levine, founder of Gotham Research Group commented on the importance of addressing the issue:

    “We are now well beyond the point where bloggers can be ignored,”

    “Some of the bloggers we spoke with have larger followings than the media outlets which executives would have interacted with in the past.”

    Today many people subscribe to of blogs looking to stay informed on what’s happening in their organizations and fields of interest. Blog writers provide a trusted inside voice. Business leaders could be capitalizing on the relationships authors build with their readers. It’s not tabloid garbage or sensationalized stories, these bloggers are in touch with the core of the industry and are constantly scanning for new information and press releases that can give them something interesting to report on.

    Short interviews with CEO’s and an occasional inside scoop could forge a useful alliance that would serve the organization as well as the blogger. I am surprised more organizations don’t help fund and foster these relationships. Believe it or not, blogs have become an essential PR tool.

  • Best Countries To Do Business 2012 Infographic

    Infographic Labs brings us this new infographic on where the best places to do business are in 2012. The study that yielded the information took into account overall ease of doing business, taxes, trade, permits, trademark registration, protecting investors, ease of starting a business, and several other key factors.

    Under the current economic situation, I find the results surprising. This could be a useful tool for aspiring entrprenaurs and investors alike. I won’t get too much into what the findings are, the inforgraphic speaks for itself.

    One thing to keep in mind while digesting the information is that the graph also includes the most improved areas for doing business. So if you’ve had trouble in the past or have just heard horror stories, you might want to look again. Things can change pretty quickly in this economy, don’t rule a particular country out until you do your homework. Enjoy:

    There you have it, the best countries to start a business or do business in for 2012. It’s surprising, isn’t it? Living in the United States, I would just like to note how low we fall in the ratings. Sad, just sad. We better step it up this year, no excuses for not being number one!