Winning on one

“Looking back, it’s like, that didn’t make sense — if your core business doesn’t work here, why expand in new markets?” said another former employee. “I think they were sort of fooling themselves with this exciting top-line growth, and they had cash in the bank so it wasn’t really a concern, immediately, getting to profitability.” But, he added, “it was fun to have that hockey-stick growth. It’s hard not to get caught up in that. As a startup, you know your task isn’t to make money — it’s to get new users, and it’s easy to grow in new markets.”

Source: What Really Killed Homejoy? It Couldn’t Hold On To Its Customers

This article shares what really killed Homejoy was its low retention rate. The company was busy looking for new users and forgotten all about keeping the existing ones. So it was kinda of like a leaking pipe.

I especially like the quote above. If a startup is not dominating in its “home ground” why do they even bother to look outside the other markets. This case study taught me that we need to win on one before jumping off to another.

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