Unicorns or Camels? I would be a Camel
Blitzscaling aka Unicorns
According to Hoffman, blitzscaling is “the science and art of rapidly building out a company to serve a large and usually global market, with the goal of becoming the first mover at scale.” Amazon and Google are great examples of blitzscaling. However, in my strategic management course this semester, we are learning that being the first company to create a product or service, does not always equate to making the most money and being successful.
Hoffman predicts that we will start to see many more examples of blitzscaling over the next few years because software is easy to scale. Start-ups have a few advantages when it comes to blitzscaling: “focus and speed.” Blitzscaling requires the quick hiring of many talented employees. In order to hire talented employees, companies must have the capital to pay them. Most importantly, when blitzscaling a company, owners need to “make people accountable to each other on a peer-to-peer basis.”
Traditional aka Camels
Being a unicorn requires a lot of money and optimal conditions. Being a camel allows for companies to grow at a slow, steady rate. Camel companies: “execute balanced growth, take a long-term outlook, and weave diversification into the business model.”
Taking the balanced growth path involves: “right-pricing from the start, cost management through the life cycle, and changing the trajectory.” Prices should not be a barrier to growth, they should help slowly increase the growth of a camel company. The article states that “breakthroughs do not come immediately.” It is okay for breakthroughs to be a slow process. Being a camel helps companies survive through changing markets, adversity, and the many challenges that companies face everyday.
I would be a Camel
When I start a company, I want it to be a camel. I want to start slow, explore my options, and see what works. I want to learn, gain experience, and network with similar small businesses. I do not want my company to grow fast like Amazon or Google did. I want to be able to successfully manage my own company before it becomes a large corporation. There is a saying “the higher the risk, the higher the reward.” I believe this statement to be true, but I like to be stable and sure of my decisions. I would rather take a smaller risk and let the reward grow overtime. According to Freshbooks, it takes on average 2–3 years for small businesses to become profitable.
References:
https://hbr.org/2020/10/startups-its-time-to-think-like-camels-not-unicorns
