In the early days of a startup, it’s easy to get swept up in the allure of innovation and the adrenaline of securing those first customers. The founders are hustling, the product is evolving, and every sale feels like a hard-won battle. In this frenetic environment, it might seem like the back-office systems and processes can wait. After all, why focus on operations when you’re still figuring out your product-market fit?
But the best startups—the ones that scale into unicorns—tell a different story. They understand that operational excellence isn’t a nice-to-have; it’s a necessity for long-term success.
The Airbnb Story: Organizing Chaos
Let’s take Airbnb, for example. In its scrappy early days, Airbnb was all about solving a very human problem: finding an affordable place to stay. The founders, Brian Chesky, Joe Gebbia, and Nathan Blecharczyk, were relentless in their pursuit of growth. They famously went door-to-door, convincing people to list their homes and improving the platform based on user feedback.
But behind the scenes, they were also laying the groundwork for scalable operations. They didn’t just focus on acquiring hosts and guests; they also invested in systems that would ensure trust and safety—a critical factor in their marketplace. By developing robust verification processes, payment systems, and customer support early on, Airbnb created the infrastructure to support millions of users as they grew.
Stripe’s Secret Weapon: Operational Precision
Stripe, another unicorn, built its reputation on making online payments seamless. Founders Patrick and John Collison had a vision of simplifying a notoriously complex process. But they didn’t just build a great product; they also designed operations that could scale with their ambitions.
From the outset, Stripe focused on compliance and legal frameworks, ensuring their platform could expand internationally without stumbling over regulatory hurdles. They didn’t treat operations as an afterthought but as a core component of their growth strategy. By prioritizing these foundational elements early, Stripe avoided the costly mistakes that plague many startups when they expand too quickly without proper infrastructure.
The Hidden Costs of Neglecting Operations
For every Airbnb and Stripe, there are countless startups that falter because they overlook operations in their rush to grow. Imagine a founder who’s laser-focused on customer acquisition, only to realize too late that their billing system can’t handle the influx of users. Or a team that scales rapidly, only to find their hiring processes are chaotic, leading to high turnover and cultural disarray.
These mistakes aren’t just setbacks; they can be fatal. Poor operations create inefficiencies, frustrate customers, and demoralize teams. Worse, they distract founders from focusing on the strategic initiatives that drive growth.
Operational Excellence as a Competitive Advantage
The lesson from unicorns is clear: early investment in operations isn’t just about avoiding pitfalls; it’s about creating a competitive advantage. When your startup has systems that work seamlessly, you’re free to focus on innovation and scaling.
Consider how strong operations empower teams:
- Customer Support: Fast, empathetic responses build loyalty.
- Hiring: A structured recruitment process attracts top talent.
- Finance: Clear visibility into cash flow prevents surprises.
- Compliance: Staying ahead of regulations avoids costly fines.
These aren’t glamorous aspects of building a business, but they’re what keep it running—and thriving.
Your Turn: Building for the Future
If you’re a founder, ask yourself: Are you building a company that can scale, or are you patching things together as you go? The difference often lies in how seriously you take operations from the start.
Investing in operations doesn’t mean you need a massive budget or a fully staffed team from day one. It’s about being intentional. Start by identifying your bottlenecks and implementing tools or processes to address them. Focus on areas that directly impact your customers and your team’s productivity.
Remember, operational excellence isn’t just for unicorns. It’s for any founder who dreams of building something enduring. Because when you get operations right, you’re not just solving today’s problems—you’re laying the foundation for tomorrow’s success.