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Stealth • 5m
In 1999, Webvan, an online grocery delivery startup (us zamane ka zepto), was scaling at a breakneck pace. Backed by millions in venture capital, they expanded to multiple cities in the US, built massive warehouses, and hired hundreds of employees, aiming to dominate the market. But by 2001, Webvan was bankrupt. What happened? They scaled too fast, too soon. Instead of refining their business model and understanding local markets, they overextended themselves. Customer demand wasn’t growing as quickly as they had predicted, and operational costs skyrocketed. Ultimately, they couldn’t sustain the rapid growth. Lesson? Stay small, at least in the beginning. 1. Focus on perfecting your product or service. 2. Understand your customer base. 3. Create a solid foundation before chasing rapid expansion. Scaling too fast can lead to cash burn, operational chaos, and eventual collapse. Growth is exciting, but growing at the right pace is what sustains businesses in the long run.
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