It can be said that the culture of technology startups is the driving force for rapid business expansion. The best technology, attracting as many users as possible, the goal is not only to build a good product, but also to scale the business fastest, earn a lot of revenue in the shortest time. But unfortunately, that is the wrong idea that leads to the failure of many startups. The reason is why? This article of Tech Town will discuss that issue with you.

Needless to say, scaling is important, but only if startups focus on the core stuff. In the startup development stage, the strategy should not be based on the goal of increasing the number of customers, but we need to be customer-centric. The more important task here is to improve the customer’s view of your startup, thereby building the brand. If you can do those things, many opportunities will be opened up.

Why is your assumption wrong?

The original ideas were always aimed at scaling, the goal was to get more customers, thereby having more revenue. But the bad thing is that customer demand is really hard to measure, and sometimes startups work just to measure it. Customer growth is easy to measure, whether it’s product purchases or website visits. Plus, many arguments show that if people buy what you’re selling, it means they like what you’re doing.


Ultimately, they argue that customer acquisition and increased sales are the best metrics for measuring customer satisfaction. If that’s the case, then MySpace is still competing with Facebook and RadioShack will crush Amazon.


In the current market, no one can judge the quality of their products for long. If someone develops a unique solution, a competitor or any business looking to expand its customer base will develop a similar solution. If startups focus on developing a scalable solution that can be sold to more customers, it will be easier for competitors to create the same solution and scale. Therefore, the competition in the field of “size” of startups will be based on price and marketing, as those are the only differences.


In contrast, competing purely on price and product accessibility consistently leads to lower margins and increased marketing budgets. As a result, despite their success in retaining some customers, startups will still be disappointed in their earnings reports.

Find a way to do things that don’t scale

Up until July 2013, it was generally understood that a successful startup was one that could scale quickly and efficiently. That changed when Paul Graham published an essay on Why it’s Important for Early Startups to Work Not to Scale. Although his title caused quite a bit of notoriety in the tech world, what Graham was talking about was not just scaling businesses, but also changing the perspective of startups from developing technical capabilities. technique to enhance personal capacity.


Many startups focus on the technical component of the product, but it can’t satisfy the customer need. These are the necessary ingredients for a successful startup, but they cannot guarantee the success of the startup.

Business success comes from doing what your competitors can’t, or aren’t willing to do.

Graham believes that startup founders don’t want to spend time enhancing their personal capabilities. Understanding the customer is just as important as understanding the technology, so Graham recommends steps for startups to “not scale” but focus on understanding customer needs.


Graham suggests that early-stage startups must actively reach customers by talking to them. The conversation he had in mind wasn’t about how to sell the product, but to listen to the customer’s use cases and explain how the product could meet their specific needs.


The key to his essay is “patience”. The patience to interact directly with customers without trying to sell in bulk. Patience to be aware of the challenges facing startups’ target market, thereby tailoring the product to meet those challenges. Patience here ensures that the customer is not only satisfied with the purchase, but also satisfied with the user experience. It all takes time.

Scaling is still important

There are many good reasons to prove that patience is something few startups have. Attracting investment capital depends on the company’s ability to demonstrate attractiveness through customer retention and growth. Graham runs YCombinator, which means that the businesses he advises have all received investment capital to develop products. It shows that these entrepreneurs actually have enough capital to scale, and still make time to do things that “don’t scale.”


The challenge here is to strike a balance between customer-driven development and creating customer growth.

All it takes is time

The answer to this problem is that startups need to do both. First, you need to understand your target market deeply and fully. Once you have that understanding, shift your focus to scaling the startup. We’ve talked about the lean startup approach before, which refers to continuously iterating the processes of the prototype and trying to discover the best strategy for the startup. These principles apply not only to the technical components of the business, but also to the startup’s customer outreach efforts.


If startups use MVPs in the context of Lean Startup Principles, they will be able to quickly identify what their customers want and can then move on to higher fidelity MVPs to help scale up. the size of the startup’s business. As a result, you achieve both goals.

MVP design and programming service in Tech Town

Understanding the MVP development needs of startups, Tech Town will help you develop MVP products at an optimal cost, integrating core features while ensuring a beautiful and friendly interface, bringing a great experience. attractive to the target audience and make a good impression on them.


Our team of seasoned engineers and designers developing custom software for startups, we can be involved in any phase of a software product development project such as: Prototyping for startups to present to investors, develop MVP, develop complete software or maintain and upgrade software… We are very pleased to become a technology partner of startups.


You have an idea, Tech Town can make it a reality. Please contact us to discuss your ideas.



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