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The right size
Source: Seth's Blog
Mar 25, 2009


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Summary

I've been thinking a lot about issues of scale and units of measure.

Many businesses that are in trouble are in trouble for a simple reason: they're the wrong size.

A newspaper that only had a few dozen employees would be doing great today. But they have hundreds or thousands of employees because that was an appropriate scale twenty years ago. When I started my first web combany fifteen years ago, the idea that you could be successful with six or ten employees was crazy, but today many of the most successful companies have not many more than that. That's 15,000 fewer employees than eBay has.

It's tempting to get bigger. But is bigger better? In many cases, it's worse, particularly when you can leverage reliable systems that are cheaper and faster and more stable in the outside world. If you can make your product better by assembling it yourself, you should. But if that action makes it worse, why do it?

Which leads to the idea of figuring out what the unit of manufacture or delivery is. Do you deliver the entire solution or just a piece of it? Twitter delivers a s

...Read the full article

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