Build, Invest, Innovate - Despite All Odds
When the economy is unstable, as it might feel like right now, businesses (and yet to be businesses) have to make choices.
They can operate from fear or they can operate from a strategic mindset. One of the biggest fears centers around money. Every business needs to make money, right? And knowing your numbers is paramount when looking to build, maintain, expand, gain funding, etc.
Great leaders take the information from their numbers, coupled with innovation, opportunity and the chance to pivot to discover what they CAN do, to meet the market.
A few great examples I found in my research were:
Mailchimp. This company has been around since 2000. During the 2008 recession, many companies were cutting down on services like email marketing and MailChimp watched their numbers decline. In 2009, they decided to introduce a freemium model limited to those users with 2,000 contacts. Of course once the users grew their lists, they leveled up to a paid plan. Prior to this, Mailchimp did not even offer a free trial so it was a huge pivot and it ended up working out beautifully. By offering both free and premium services, they were able to maintain their current customer base, find new ones and be the support companies needed at the start all the way up until they were ready for the upgrade levels.
Co-founder and Chief Executive Officer Ben Chestnut said, “I mean, we went from tens of thousands of users to a million in the first year. And then it doubled and doubled and doubled after that. It’s been a crazy rocket ride from there.”
How can your business meet the marketplace today? Is it time to pivot or create a shift? What services or products can you add to your existing offerings to support your client base or find an additional client base? What small changes can you make that could lead to lasting impacts?
Airbnb. Airbnb founders Brian Chesky and Joe Gebbia needed to make some extra money to pay their rent. The idea of renting out an air mattress in their apartment for people coming in for a big design conference that couldn’t find a hotel room was the spark that got it all started.
They stuck with this innovative idea and built upon it, even after initially being turned down by seven investors in their pitch for seed funding in 2008. By 2011, Airbnb was in 89 countries and 1 million nights had been booked on the platform. I encourage you to read the whole story behind this business, it’s pretty fascinating, and even includes selling cereal. In 2021, Airbnb was valued at 113 billion U.S. Dollars.
Are you sitting on an idea just because you don’t think it’s mainstream? Are you limiting yourself because you are afraid to try something new? What action can you take today to see if that idea in your head should be the idea that makes it onto the next agenda?
In order to pivot, innovate and look for opportunity, your business must be built on a solid financial foundation.
Whether you are on day 1 or day 3,000, look at your numbers, understand the story they tell, review your overhead, sales and profitability and work the actions to keep your business growing and thriving.