What Does It REALLY Mean To Do Things That Don't Scale? – Dalton Caldwell and Michael Seibel | Summary and Q&A

TL;DR

Doing things that don't scale is an essential part of early-stage startups, where founders personally handle manual tasks and prioritize user satisfaction over scalability.

Key Insights

• 🚗 One key insight is that doing things that don't scale in the early stages of a startup is important, as it allows founders to manually handle tasks and personally interact with customers. This can lead to a deeper understanding of the business and better customer relationships.
• 🍽️ Another key insight is that founders who are willing to do the low-status, unscalable work such as delivering food or personally handling customer support have a higher chance of success. This hands-on approach allows them to truly understand the challenges and needs of their customers.
• 🚙 The example of DoorDash and Reddit demonstrates how doing things that don't scale can lead to initial growth and user engagement. Founders who go above and beyond to provide a personalized and delightful experience for their customers can differentiate themselves from competitors.
• 💡 Startups should embrace the mindset of doing just enough to get started, rather than striving for perfection from the beginning. This includes launching imperfect products and being open to learning and iterating based on customer feedback.
• 💻 Working at big tech companies like Google can instill a focus on scalability and perfection, which may not always be helpful in the early stages of a startup. Founders should be aware of the mindset shift required and be willing to let go of the idea of perfection.
• 💪 Founders need to be mentally prepared for the challenges and difficulties that come with the early stages of a startup. Maintaining motivation is crucial, and founders should expect setbacks and embrace the struggles as part of the journey.
• 🔍 Doing things that don't scale can provide founders with invaluable insights and experiences. By being on the frontlines and personally handling various tasks, founders can identify problems, understand their users better, and build a better product.
• 🤝 Startups require a special kind of person who is not only smart but also willing to do the hands-on, unglamorous work that comes with building a company. This work ethic and mindset can make a significant difference in the success of a startup.

Transcript

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Questions & Answers

Q: What is the difference between doing things that don't scale and relying on scalable processes?

Doing things that don't scale refers to founders personally handling tasks that are not easily automated or scaled, prioritizing user satisfaction over scalability. Scalable processes, on the other hand, involve implementing systems that can grow with the company and handle higher volumes efficiently.

Q: What were some unconventional strategies used by Reddit's founders in the early stages?

Reddit's founders manually submitted links themselves, using different usernames to create the illusion of user activity. This allowed them to launch the platform with a page full of users, even though there were initially just two users.

Q: Why did the founders of DoorDash personally handle food deliveries?

The founders of DoorDash personally handled food deliveries to ensure customer satisfaction and to delight users by providing a personalized experience. It also allowed them to understand the challenges of the delivery process and build relationships with restaurant owners.

Q: How does doing things that don't scale help startups learn and improve their products?

By personally handling tasks and being on the front lines, founders gain valuable insights and feedback from customers, allowing them to iterate and improve their products. This hands-on approach helps startups better understand user needs and challenges.

Q: Why do many founders struggle with motivation and maintaining momentum during the early stages of a startup?

Many founders have unrealistic expectations about the timeline and ease of success. When faced with the reality of the challenging and often unglamorous early stages, they can lose motivation. Additionally, criticism, the pressure to achieve perfection, and the absence of immediate results can impact founders' motivation.

Summary & Key Takeaways

• Founders often confuse doing things that don't scale with manual and personalized tasks that require their direct involvement, rather than relying on scalable processes or code.

• Successful examples include Reddit's early strategy of manually submitting links to create the illusion of user activity and DoorDash founders personally handling food deliveries to ensure customer satisfaction.

• The early stages of a startup require founders to embrace low-status work, be accountable for the entire system, and actively learn from hands-on experiences.