In Startuplandia the concept of “faking it until you make it” is accepted as part of the process of building a successful business.
When speaking to potential customers, partners or the press, the common wisdom is to pad your user numbers, growth trends or team size so outsiders assume that you’re larger than you really are—thus more established + less risky of a proposition.
The interesting part is that in other parts of the economy, scarcity, small batches and fewer offerings are seen as a sign of quality. Think boutique bakeries that only make a few dozen artisan croissants a day—and when they’re gone, they’re gone. Or Hermes, whose signature Birkin bags are in perpetuity (and purposefully) kept in short supply; and Bespoke Watchmakers who produce their craft in small batches and have customers waiting for years before their order is fulfilled…
But back in Startup Land, an ecosystem fueled by capital that needs to be returned in 8 to 10 years, these models are deemed “lifestyle businesses” and if not openly derided, then at minimum looked upon as not a part of the rarified air that is the world of scalable startups.
Though, the facts don’t bare this out. All of the massive companies, and household names, we now know, started as small businesses. In fact most of them started with small batches, and did things that “don’t scale”.
