Lenny Distilled

Zigging vs. zagging: How HubSpot built a $30B company

April 04, 2024

Featuring: Dharmesh Shah (Co-founder/CTO, HubSpot)

11 quotes · 10 insights

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Most decisions don't matter as much as you think

The calories you spend on a decision should be proportional to the consequences of that decision, pure and simple.
Dharmesh ShahCo-founder/CTO, HubSpot 01:07:21

Work where your energy naturally flows

I could become passively okay at management with some training, with some coaching. I don't want to spend any years of my life becoming passively okay at something.
Dharmesh ShahCo-founder/CTO, HubSpot 00:00:16

Pick problems worth solving, not comfortable positions

Don't try to go learn something because you think it's worth learning. Find an actual problem that you care about and go try to solve it with that new thing.
Dharmesh ShahCo-founder/CTO, HubSpot 01:37:34

Culture is a product you build for your team

Culture is a product, period, and every company builds two products, one is the product they build for their customers, and the other is a product they build for their team.
Dharmesh ShahCo-founder/CTO, HubSpot 1:21:17
Just like you would never freeze the lines of code of a product, you would never freeze the lines of code of a culture. Culture should be iterated on just like you iterate on product.
Dharmesh ShahCo-founder/CTO, HubSpot 01:22:15

Win through segmentation before scale

"Bowling Pin" refers to Geoffrey Moore's go-to-market strategy of targeting one market segment first, then expanding to adjacent segments sequentially.

We are here for SMB. That's what we're doing. This is not a go-to market strategy. This is not like, 'Oh, we're going to conquer SMB first,' this is not Bowling Pin, this is not Geoffrey Moore.
Dharmesh ShahCo-founder/CTO, HubSpot 29:58

Do things that give you energy - that's where impact lives

You tend to be good at the things you enjoy. You tend to enjoy the things you're good at.
Dharmesh ShahCo-founder/CTO, HubSpot 00:17:04

Simplicity beats feature competition

Some of the best startup advice I've heard is startups should focus on one thing and be really, really exceptionally world-class at that one thing. And one of our early zigs is we are going to do exactly the opposite of that.
Dharmesh ShahCo-founder/CTO, HubSpot 00:00:00

Limit process to preserve innovation

Within a closed system, entropy increases over time. In the early stages of a company, you're essentially fighting to survive. In the second phase of a company, you're trying not to stagnate. But then the third stage is you're fighting complexity.
Dharmesh ShahCo-founder/CTO, HubSpot 37:49

Products are hired for progress, not features

The one thing we wanted to be good at was solving for the actual customer problem that existed, and the customer problem that existed was not a dearth of tools, lots of great SEO blogging, everything, all the tools existed, but SMB specifically did not have the wherewithal to put all those pieces together.
Dharmesh ShahCo-founder/CTO, HubSpot 00:52:00

Saying yes to one thing means saying no to another

Every time you say yes to something, by definition you're saying no to something else.
Dharmesh ShahCo-founder/CTO, HubSpot 01:08:57

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