Crawl, Walk, Run vs Jog, Run, Sprint: Examining Contrasting Models of Business Growth
Growing a successful business is no easy feat. It requires strategic thinking and planning around how to pace progress in a sustainable yet ambitious manner. When it comes to expansion frameworks, two models often referenced are the relatively prudent “Crawl, Walk, Run” approach and the more aggressive “Jog, Run, Sprint” pathway.
In this comprehensive blog post, we’ll analyze these models
in-depth, examine their pros and cons, discuss why companies frequently end up
diverging from slower growth plans towards rapid acceleration, and provide
actionable recommendations on how organizations can pursue smart scaling.
The
Gradual Crawl, Walk, Run Business Growth Model
The metaphorical “Crawl, Walk, Run” approach essentially
advocates taking measured steps to test assumptions prior to accelerating
growth. It emphasizes getting the foundations right, even at the cost of slower
initial advancement. Here is an overview of each phase:
1. The Crawl Stage
This beginning stage is all about perfecting the core
offering and business fundamentals when commercial viability is still unproven.
Key elements include:
Refine product-market fit: Rather than rushing out an
untested prototype, invest time iterating until distinctive product-market fit
is achieved. Listen to early adopters through rounds of user testing and
feedback to improve stickiness.
Concrete operations: Establish robust operations in
areas such as production, delivery models and customer support rather than
prematurely focusing on flashy marketing and sales.
Process orientation: Create reliable systems and
standard operating procedures even if still small-scale. The goal is laying the
infrastructure to smoothly scale later.
Organic growth: Customer acquisition is primarily
through word-of-mouth and referrals rather than paid channels. The emphasis is
on profitability over unprofitable growth tactics.
The crawl stage is thus about nailing the business recipe
before increasing quantities served. Moving too fast too soon can waste
resources better spent on perfecting foundations when the viability remains
unsure.
Of course, the crawl mindset has its critiques too. Slow
progress leaves the door open for competitors and misses tapping into powerful
momentum effects early on. But it’s a trade-off some accept for increased
stability.
2. The Walk Stage
Once core product-market fit and repeatability of key
business processes is empirically established through initial traction and
customer loyalty, firms enter the “Walk” phase. This involves carefully
expanding reach and capabilities including:
Controlled marketing: Begin steadily upping marketing
expenditure and reach. However, optimize spend through continual testing and
ensure sustainable ROI across channels.
Measured hiring: Only onboard talent when there is
sufficient commercial justification and established training systems. Maintain
lean culture avoiding premature bloating of payroll expenses.
Gradual distribution: Widen physical and digital
distribution in a phased city-by-city manner for instance to keep growth steady
versus explosive overnight.
Conservative financing: Raise new funding rounds only
when hit predetermined operational milestones warranting infusion for the next
stage while avoiding dangerous cash burns.
The walking stage is thus about taking growth to the next
level in a controlled manner with guardrails to avoid stumbling. The tempo
marks a transition from crawl mode to now building steady momentum.
3. The Run Stage
The final “Run” phase is when businesses leverage
established product-market validation to rapidly pick up speed across
dimensions like customer reach, revenue growth, team expansion and distribution
penetration.
This stage sees hefty augmentation of key engines such as:
Wider product lines: Launch complementary products,
spinoffs and brand extensions to flesh out the portfolio now that R&D
systems are proven.
Heavy marketing and sales: Scale advertising budgets
to widen brand influence. Grow dedicated sales teams to convert demand.
Potentially expand to new demographics and geographies.
Ramped hiring: Rapidly expand specialist teams as
operations can smoothly onboard and train at volume. Deeper vertical
integration potentially with some functions brought in-house.
Surge of financing: Larger and later stage funding
rounds to pour fuel on now de-risked growth. Potentially even get acquired by
mature players seeking to absorb growth momentum.
The run phase is when organizations press down hard on the
accelerator to amplify all flywheels with the confidence rooted in prior
evidence. Risks remain under control thanks to the journey taken until this
point.
The
Faster Jog, Run, Sprint Model of Business Growth
In contrast to the measured Crawl, Walk, Run sequential
framework centered on de-risking expansion gradually, the “Jog, Run, Sprint”
model embraces moving rapidly out the gates and sustaining momentum across
stages. Let’s break it down:
1. The Jog Stage
Rather than obsessing over perfection before raising a
sweat, the jog phase is all about translating vision to reality quickly to
start garnering traction:
Test experimentally: Get a trial version out, even if
imperfect, to begin real-world testing rather than chasing theoretical
excellence upfront. Fail fast and improve iteratively.
Tap early energy: Channel the natural motivation and
adrenaline rush of a brand new business into rapid implementation before
stagnation sets in.
Acquire seed capital: Line up early financing even if
at the expense of higher dilution to enable moving fast. Give away larger
equity chunks to build capabilities now.
First-mover positioning: Instead of waiting for
competitors, be the first in the race to make a land grab around branding,
customer acquisition and key partner deals.
Jog mode is thus about balancing speed with finding enough
signals confirming core product-solution fit hypotheses. It avoids losing steam
by maintaining momentum and capitalizing on initial enthusiasm.
However, sprinting ahead without reflecting heightens risks
of having to backtrack if headed the wrong direction. Rash decisions also haunt
later. Still, some see it as a calculated risk well worth taking.
2. The Run Stage
With indications of interest from initial users and backers,
the next running phase sustains rapid iterations across functions:
Ramp marketing: Keep investing in advertising and
promotions even without hard profitability data to power through the chasm
period of slow conversions post-innovators.
Talent infusion: Bring on talent aggressively across
technology, sales, support and operations to build institutional strengths
rather than remain founder-centric.
Expansion sprinting: Speedily widen target
demographics, penetration of distribution channels and deployment across
regions to capitalize on windows of opportunity before imitators.
Further financing: Keep raising capital frequently
even amidst losses to back growth experiments. New funding rounds used for next
milestones stretching goals further.
Essentially “run” mode applies an aggressive growth playbook
leveraging early positives signals to scale amidst uncertainty. Profitability
and process discipline take a backseat to rushing products to markets thirsty
for solutions.
But misreads of consumer responses can trigger careening off
track requiring later course corrections. Additionally, undisciplined spending
undermines stability. So constant reality checks are vital.
3. The Sprint Stage
The final business growth sprint sees hypercharged expansion
across all aspects in a quest for market leadership:
This stage sees exponential acceleration of key engines such
as:
Even wider product lines: Expand scope of offerings
to flank competitors on all sides and entrench positioning as a one-stop shop.
New products built rapidly atop existing platforms.
Viral marketing and sales: Pour hefty budgets into
advertising and promotions to achieve virality and mass awareness. Scale
commission-hungry sales teams rapidly.
Unbridled hiring: Onboard talent enmasse across the
organization to match inflated ambitions and staff new initiatives popping up
constantly.
Burn funding rates: Leverage investor FOMO and
obsession with market cap milestones to raise larger, frequent funding rounds
at soaring valuations enabling expensive growth experiments.
Sprint mode represents uninhibited acceleration where
organizations leverage momentum, scale and funding mania to establish dominant
standing across a swath of markets hitting escape velocity growth.
But such an aggressive quest for hypergrowth has its obvious
perils too. Reckless expansion of inferior products. Teams and culture bloating
into dysfunction. Precarious cash burn rates that can trigger implosion if
funding dries up. Still, for some the quest for global monopoly justifies these
risks.
Core
Differences Between the Models
As evident in the detailed walkthroughs, the Crawl, Walk,
Run and Jog, Run, Sprint models are anchored around fundamentally different
philosophies regarding prudent versus aggressive expansion strategies.
Some salient trade-offs between the approaches include
factors such as:
Speed vs Stability: Crawl-Walk-Run favors gradual
escalations anchored to progress markers for establishing stability mastery
before rapid growth. Jog-Run-Sprint aggressively accelerates out the gates to
win at speed despite risks of stumbling.
Perfection vs Iteration: Crawl-Walk-Run deeply perfects
offerings first before release as adoption is uncertain. Jog-Run-Sprint
launches fast then iterates products rapidly based on user feedback.
Process vs Priorities: Crawl-Walk-Run doesn’t compromise
foundational systems build for impatient expansion later. Sprinting
deprioritizes process discipline feeling urgency wins markets.
Clearly, there are merits to both schools of thought and
companies need to consider trade-offs closely when structuring growth
trajectories.
Evolving
From Slow to Fast Growth Playbooks
Having outlined these popular but starkly different business
growth ideologies, we come to a frequent real world observation. Companies
often set out initially intending to follow the tempered crawl-walk-run model
but end up migrating towards aggressive jog-run-sprint behaviors.
What explains this phenomenon where despite best intentions,
fast pacing ends up irresistibly winning over prudence? Let’s explore key
drivers:
1. Seductive Investor Growth Expectations
A major influence often pushing companies to sprint relates
to investor expectations. The VC model incentivizes swinging for explosive home
runs rather than incremental singles. Their funding and oversight perpetuates
focus on rapid, hockey stick trajectories chasing unicorn status rather than
slower stability focused growth.
Many founders set out wishing to play it safe. But they get
enticed by investor capital tied to delivering outsized returns rapidly. This
inevitably pulls them towards fast expansion despite risks. Saying no to easy
money is tough when competitors are vacuuming up rounds to sprint ahead
ruthlessly.
2. Threat of Competition Forcing Hand
Another reason behind pivoting from crawl disciplines into
running headlong relates to market competition. In many categories, oceans
rapidly turn bloody with sharks in a feeding frenzy. Standing still cautiously
is no option when rivals sprint at full velocity.
The fear of disruption or getting boxed out by fast movers
pressures companies to abandon conservative plans in favor of rapid pursuit of
scale. In times of intense rivalry, racing ahead recklessly often displaces
creeping ahead prudently.
3. Founder Ambitions and Early Wins Breeding
Overconfidence
Additionally, the background and track record of founders
also explains many acceleration decisions departing from slow growth plans.
Numerous innovators are inherently ambitious, restless and thirsty for meteoric
expansion in pursuit of industry dominance. Their wired DNA gravitates towards
running hot and fast.
Early traction and small wins also frequently feed
overconfidence. The feeling “we can do no wrong” takes over driving founders
impatient for quick wins to charge ahead prematurely despite lacking processes
or capabilities. This hubrisfuelled urgency is a common trigger leapfrogging
organizations hastily out of walking into sprinting.
4. Execution Challenges Slowing Momentum
Finally, sometimes external dynamics also force
entrepreneurs’ hands regulations, supply bottlenecks, recruitment woes and
various operational obstacles can throttle smooth execution of scaling plans.
Momentum begins to taper off during the walking stage.
Rather than staying this challenging course, many alter
strategies to sprint ahead aggressively in new directions where obstacles seem
fewer. Desperation Avoiding stagnation often inspires excessive acceleration as
founders seek fresh terrain allowing faster progress.
Recommendations
for Smart Scaling
Having discussed the appeal of sprint model despite
crawl-walk cadence preferences, are founders fated to inevitably abandon
gradual growth strategies? Do ambient pressures guarantee ending up in
breakneck speed territory?
Certainly temptations abound pulling companies towards rapid
acceleration and entire industries succumb to collective mania. However, with
self-awareness, discipline and proactive balancing mechanisms, organizations
can stick to scaling sensibly.
Here are some tips:
Set Realistic Milestones - Rather than buying into hockey
stick prophecies, set milestones mapping to business fundamentals over
arbitrary growth curve shapes. This reduces pressure enabling sticking to crawl
disciplines.
Structure Governance Carefully - Seeking appropriate
investors aligned to prudent scaling and negotiating commitments upfront to
governance models minimizes reckless influence. Independent board seats also
help enforce disciplines counterbalancing irrational exuberance.
**Obsess Over Unit Economics ** - Ruthlessly focus expanding
only when positive unit economics sustainably proven avoids pursuing
unprofitable growth traps. Let profits signals guide scaling cadence over
growth for its own sake.
Install Feedback Loops - Build operational feedback loops
ensuring processes ramp only when metrics confirm capabilities in place to
sustain quality and profit margins at larger volumes. Don’t scale simply based
on funding availability.
Revisit Vision Periodically - Cadence tensions reflect
overflowing ambitions beyond capabilities. Reigniting inspiration, revisiting
progress and resetting visions to realistic trajectories avoids unrestrained
acceleration.
While it’s easy to get seduced by the appeal of rapid
acceleration, implementing checks and balances centered on sustainable scaling
enables sticking to doing things in the right sequence, at the right time.
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