1-Sentence-Summary: Masters of Scale teaches entrepreneurs ways to open up a successful company and scale it from the grounds-up by going into detail about the right business practices, how to seize opportunities, and foster an organizational culture that encourages innovation and customer-centricity.
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If starting up a successful business is a challenge, scaling it up is the real feat. You’ll have to think of a feasible strategy and sustainably scale the company. Not only that, but you’ll also have to consider the importance of your customers, employees, and all the other factors that influence your organizational environment.
Starting from the business plan which you’ll present to a fair amount of investors before you get a yes, to getting a clearer direction, there are the internal and internal factors of influence you’ll have to learn to control. Then, there’s the most important part: customers, and on top of that, scaling. That might sound like a lot, but Masters of Scale by Reid Hoffman has got all the answers you need to get ahead of the game.
Here are my three favorite lessons from the book:
- Sometimes a “no” is an opportunity in disguise.
- Always listen to the market needs and come up with solutions to address them.
- A great business deserves an excellent leader who knows how to navigate market fluctuations.
Now, we’ll explore each lesson in detail to get the most out of them!
Lesson 1: Receiving a “no” can help you get some significant insights into your business idea
Let’s say you’ve just finished pitching your idea to a potential investor. And after your presentation, all you get is a no. That’s it, they didn’t even consider another option. Or perhaps they evaluate your idea in detail, and then they say no. Another situation is when they didn’t even hear it right, yet they rushed to greet you with a negative answer. You see, different no’s have different meanings.
However, all of them can help you re-evaluate your business and come up with better ideas. In any case, receiving a no should never keep you from chasing your goal, but it should help you reassess it, perhaps. Oftentimes you hear criticism from your family and friends, who don’t want to see you hurt.
Ask them why they don’t like your idea, and if they can’t be specific about it, it’s an emotional-based opinion. If your investors refuse your idea straight away, they could be trying to spare themselves an uninteresting pitch. Therefore, take that opportunity to reevaluate your business and address the weaknesses. Do so when you receive a detailed no as well, and ask for advice.
Sometimes a no can give you the chance to grow your idea even stronger before you take it to the market. Chances are you won’t succeed at first. But after a while and if you persevere, your idea will grow stronger than ever. The lesson here is to learn to differentiate between a lazy and a real no and learn from them later.
Lesson 2: Your customers have the most valuable insights into your business
Scaling up can prove to be a real challenge if you don’t know how to set the pace for this process. Luckily, all the information you need to take this leap forward is already in the market. So the only thing you have to do is look for it. Scaling up your business through referrals or huge promos can speed up the process. But it’s important to know if you can handle that.
Always expect the unexpected. What if so much more people than you’ve imagined sign up for your list of products? On the other hand, fearing the market is another impediment for entrepreneurs. There isn’t such a thing as the perfect momenfcret. However, you can get pretty close if you listen to your customer’s needs and wants.
Then, serving them your solution at the right time and not waiting forever to perfect your craft can prove to save your company from starvation. A great way to tell what your customers are thinking is by listening to what they’re doing, rather than what they’re saying.
Oftentimes, customers say they love an outfit from Fashion Week. And yet, they seem reluctant to buy it because they can’t wear it in their everyday life. Therefore, companies that come up with more casual outfits for everyday wear, although they prompt themselves through the famous event, are more successful than ever!
Lesson 3: Successful companies have great leaders and are extremely flexible
The journey of an entrepreneur is volatile, dynamic, and risky. That’s simply the nature of the business itself, and a good leader knows it. Excellent leader knows that they should always be prepared for the unexpected and that even their core business dynamic can change in a day.
Take Airbnb for example. During the pandemic, the company couldn’t accommodate people like before, so they switched to promoting remote working places for people who went online, virtual tours, local attractions, and even virtual salsa lessons!
Airbnb was never in this type of business, but they had to adapt to the new environment, and so they did! A great leader knows that an obstacle calls for another way to get around the problem, and come up with an even better solution instead. Improvising and adapting are two of the key traits of any successful executive.
Lastly, a great leader knows the importance of the social responsibility of an organization. Before Starbucks was profitable, it offered the first comprehensive health insurance program to all its employees. Other companies choose to be environmental-friendly, help local communities, and so on.
Masters of Scale Review
Masters of Scale teaches its readers ways to scale a business, overcome obstacles in the process of setting up a company or even in full-operational mode, foster a learning organization for employees, and many other business practices. The book offers great advice on how to scale a business and how to pick the right timing. Moreover, it’ll teach you essential business-related aspects, such as becoming a remarkable leader and taking care of corporate social responsibility in the meantime.
Who would I recommend the Masters of Scale summary to?
The 30-year-old leader who wants to learn more about scaling procedures, the 27-year-old start-up founder who wants to set up a successful company, or the 40-year-old project manager who wants to go more in-depth about specific business and scaling practices.