- Dave Sterrett
"Blitzscaling" vs. "Customerscaling" a Business
Reid Hoffman's second podcast on his Masters of Scale series launched a debate about whether companies need to "blitzscale" or "customerscale" in order to grow. Hoffman feels that for companies to rapidly scale up or "blitzscale" they need to ask for more money than they need from venture capital investors. Tim O'Reilly compares blitzscaling with growing from free cash flow without investors - a growth model that could be described as "customerscaling". They both have their advantages and disadvantages. Blitzscaling can allow you to grow faster but with the potential for sacrificing control. Customerscaling is slower but more responsive to customer input and keeps more owner control. Which method do you prefer?