High Growth Handbook: Scaling Startups From 10 to 10,000 People

by Elad Gil

I think when people aren’t scaling, they micromanage in an incredible way because they feel like that’s the only thing they can really control.

If you made a mistake, acknowledge it, lay out a plan of action, and take action. Do not lie.

Because you could be a media darling and have one misstep where you communicate something really poorly, and it really sets you back in terms of the public perception of your company. It can be really hard to rebuild that trust. That’s why authentic communication, never lying, and transparency—to the extent that you can be transparent—are so important.

People need to fail in order to learn, in life in general and definitely in business.

At a high level, a product manager (PM) is the single cross-functional owner directly responsible for the success of a product.

It is important to note that product managers are not project managers—i.e. a PM’s primary job is not just running a schedule.

When interviewing a product manager from a successful product, it is important to dig into their specific contributions.

Once a CEO has seen a “great” product organization and VP product in action, product management tends to become one of the most valued functions in a company.

Build a product so good that customers will use you over an incumbent.

Be aggressive rather than complacent about customer growth early.

Realize your customer channels are a primary asset of the company.

Realize that your company will not be able to build everything itself.

The smartest companies realize they are also in the distribution business, and will buy (or build) and then redistribute a range of products.

Strategic investors may also try to use their investment to get information and learn about your business so they can eventually compete with you.

Choose your board members carefully! And consider avoiding new additions altogether, unless your late-stage investors can help in unique ways.

Most companies require you to exercise your stock options within 90 days of leaving your job with the company, or you lose all the options you worked years to obtain.

When people get scared they sit on their wallets.

“Valuation is temporary. Control is forever.”

Maybe in 1999, if you started a venture-backed business, your odds of success were 1 in 10. Today they might be 1 in 50.

So it’s just human nature that when you have money you will spend it, and not always for the better. I think it takes your eye off the ball. In that sense, it is true that companies that are at least somewhat cash-constrained do better.

If somebody spends ten minutes telling you how honest they are, I can guarantee you that’s a dishonest person.

If they give you an exploding term sheet, if they’re difficult to work with, if they’re inflexible, intransigent, they’re going to be ten times worse once the money is in.

The moment you know that you’re working with someone that you would not work with for the rest of your life, stop working with them right there. Save your time.

So I think you should hire extremely slowly. Hire only after there’s a burning need for that person. I think you have to be ruthless about firing and trimming the ranks. And I know that’s not popular—I know people don’t like that model—but it’s worked well for me and for us. The founder just has to keep a very, very tight eye on waste. And there’s always waste.

M&A was a powerful tool for both Google and Twitter to add new products and key people as well as make major strategic moves.