By: Joshua Finley
Every company, irrespective of its business model—whether it’s product-based, SaaS, service-oriented, or in media—will inevitably experience a predictable cycle of growth and maturation known as the S Curve of Business. This curve, often interchangeably referred to as the S Curve of Innovation or the S Curve of Growth, represents a challenging yet transformative phase for businesses.
Sanjeev Singh Sahni, an accomplished executive with over two decades of experience in scaling technology-driven enterprises, currently spearheads Wayfair Professional, the B2B arm of Wayfair. Here, Sahni shares his insights into identifying the next S-curve of growth, once a company surpasses its first billion in revenue.
Revisit Product Market Fit
Sahni underscores the importance of revisiting the product market fit as the first step toward the next growth phase. “When companies embark on their journey, they have a clear understanding of their offerings and target market segments,” Sahni explains. Initially, a company’s product or service caters to a specific market need, attracting early adopters who are enthusiastic about innovative solutions.
However, as the business expands, the relevance of the product may evolve, necessitating adjustments or targeting a different niche. Sahni stresses the need to reassess the product market fit to ensure continued relevance. “You have to make sure your product remains relevant and continues to address the largest target market,” he says.
Update the Go-to-Market Strategy
Following the reassessment of product market fit, Sahni advocates for updating the go-to-market strategy—a critical focus for scaling businesses aiming to sustain momentum and deepen market penetration. Initially, companies adopt a broad approach to capture diverse customer segments and geographical markets, swiftly gaining market share.
However, as companies mature, this broad strategy may lose efficacy. Sahni observes, “At a certain stage, saturation occurs in one or more segments,” indicating the need for a refined and focused approach to ensure sustainable growth and avoid diminishing returns.
Evolve Leadership From Scrappy Leaders to Scale Builders
Sahni emphasizes the evolution of leadership from “scrappy” leaders, proficient in addressing immediate needs, to “scale builders” capable of establishing scalable platforms and infrastructure. While scrappy leaders are instrumental in the early stages, Sahni contends that transitioning to scale builders is imperative for sustainable long-term growth. Leaders adept at building scalable platforms are essential for managing the complexities of business expansion and enabling the company to thrive in a competitive landscape.
“Scrappy leaders are highly adaptable and proficient at addressing the immediate needs of customers and the company,” he says, “but as the company matures, this approach can result in technical debt and inefficiencies.”
Preparing for Your Company’s Future
Identifying the next S-curve of growth post-reaching the billion-dollar revenue milestone entails a strategic reassessment of product market fit, updating go-to-market strategies, and evolving leadership. Sahni’s insights offer a comprehensive roadmap for navigating this critical and often challenging phase. By focusing on these key areas, businesses can position themselves to seize new growth opportunities and sustain their upward trajectory.
Learn more about Sanjeev Singh Sahni by connecting with him on LinkedIn.
Published by: Martin De Juan
