I just finished the book, and thought I'd post a summary to help sway someone's mind if they're thinking of reading it or not. Overall I think the book had some unique insights from the early days of LinkedIn, and through Reid Hoffmans work with Greylock partners ( A VC firm), plenty of anecdotes from companies like Airbnb, Facebook, Uber, Tesla and SpaceX.
Pros: Great information to have when considering your next idea.
Cons: This could really be a concise essay of 40 pages instead of the 300. Too many times I found concepts being repeated, as if the reader had forgotten.
What is Blitzscaling?
Blitzscaling is both the general framework and specific techniques that allow companies to achieve massive scale at incredible speed.
Blitzscaling is both offensive and defensive strategy
Thrives on positive feedback loops, company that grows to scale first reap significant competitive advantages
Comes with large risks.
Business Model Innovation
Of the three core techniques, the first and most foundational is to design an innovative business model capable of exponential growth.
Designing to maximise growth: The four growth factors:
Leverage existing networks
Virality ( Dropbox invitation example )
High gross margins
Designing to maximise growth: The two growth limiters:
Lack of product market fit
Operational scalability ( Software over restaurants )
Proven Business Model Patterns
Bits rather than atoms
Free or freemium
Underlying principles of business model innovation:
Adaptation, not optimization
The contrarian principle
When to blitzscale?
Big new opportunity
First scaler advantage
Learn more than competition
Competition ( when you have it )
When to stop blitzscaling?
Declining rate of growth
Worsening unit rate economics
Decreasing per employee productivity
Increasing management overhead
Eight key transitions:
Small teams to large teams
Generalists to specialists
Contributors to managers to executives
Dialogue to broadcasting
Inspiration to data
Single focus to multithreading
Pirate to Navy
Captain to Admiral
Scaling yourself: Founder to leader
Nine counterintuitive rules of blitzscaling:
Hire miss right now, not miss right
Tolerate bad management
Launch a product that embarasses you ( MVP, not shit)
Let fires burn
Do things that don’t scale ( Throwaway work )
Ignore your customers
Raise too much money ( instead of too little )
Evolve your culture (Build a ship of Theseus )