I Scaled My Company From $10 Million to Over $200 Million in 4 Years. Here are 3 Things That Lead a Company Through Market Disruption.

When I started Appfire in 2005, hardware was king and companies like Dell, IBM and HP were the leaders and innovators of all things technology. Businesses rely heavily on hardware to house their IT infrastructure, and the concept of the cloud seems like a fantastic dream. My partner and I built our business to support traditional hardware-centric models, and that was the system that worked in those early years.

In 2010, I found myself at a crossroads as the rise of cloud computing was slowly shifting the focus to physical environments and we were deep into development to release new collaboration software in a hardware-based environment. VMware burst onto the scene, making software all the rage. The hardware evaporated almost overnight.

As a business leader, I had to make a difficult decision: if I should direct my team and the company in a way that could throw away all the work we were going to do on our hardware-based product to jump into the process of automating the market and our competitors? Or should we stay the course, continue our product built in the hardware space? After careful consideration, we decided not to invest in the use of vision right away as the time was not right for us.

I am reminded of this myth as the AI ​​boom continues its momentum, with no signs of slowing down. Just look at Nvidia’s recent earnings or Atlassian’s launch of Rovo, an AI assistant. One day, when we look back in the history books, this period will be marked by the incredible rush and shift we’ve seen in companies of all sizes to integrate AI into their offerings. This goes beyond providing AI-powered solutions. Companies are reengineering, restructuring and reinventing themselves as AI-centric to attract investment, talent, and market share.

As business leaders, we are constantly faced with the challenge of whether we should jump on the latest trend. Do we follow the pack and change our entire strategy and product roadmap, or stay on our current path?

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Through my journey growing and scaling a leading software company from $10 million to over $200 million ARR in four years, I have identified three tips that can help leaders decide whether to embrace the trend or stay the course.

1. Make sure the shift matches what the customers want

Don’t lose sight of customer needs and wants in times of change. Getting it right for your customers is more important than being fair. The survey found that more than 90% of people believe that companies should listen to customers in order to develop new products. Even if as a business leader you are desperate to incorporate AI into your end model, if it is not relevant to your customers you will fail and you will not be profitable.

There are several ways you can get this feedback from your customers. Sending out customer surveys, using a customer advisory board and meeting with customers in person are great ways to understand if what you’re building makes sense for your customers. If your company has a strong channel plan, talk to your partners regularly about what they hear from customers

2. Find out if you have the right resources

It can be tempting to jump on a trend, especially if the market needs it and competitors are already there. In 2010, one of the main reasons we decided not to move quickly from our platform strategy to virtualization was that we didn’t have people in place with the right skills. As a result, we knew that we would not be successful in making tangible things in a way that would have an immediate impact on our customers.

When a big change occurs in the market, instead of jumping into education, put those efforts and resources into training your employees. Many are eager and want to expand their skills – in fact, one study shows nearly 75% of employees are willing to learn new skills. Then when you have the right people with the right skills to help you make an impact, you can turn your focus to innovation. When employees get the right training to acquire the skills they need, the business itself will see the benefits.

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3. Stay true to your core values

Remember the key principles you established when you launched your company and use them as guiding principles as you make decisions. Almost all employees agree that a workplace culture based on core values ​​plays an important role in long-term success.

If the latest trend aligns with your mission, vision and purpose, it can be a valuable addition to your strategy. However, if not, the pursuit may not help your company in the long run. Staying true to your core values ​​ensures that your business stays focused, authentic, and purpose-driven in the face of changing markets.

When a new trend disrupts the market, navigating the way forward can be challenging. Consider the approach Atlassian took with Rovo. While others rushed to find an AI assistant to market last year, Atlassian was deliberate and strategic. It was more important to them to release a tool that fits their mission of making teams work better than being “first.”

Remember that customer satisfaction is more important than consistency. Many times blindly following the crowd without thinking deeply can lead to compromise and loss of new thinking. Don’t lose sight of your mission, vision, and purpose. These values ​​are likely what attracted employees and customers to your organization in the first place, and what will keep them around long after the trend has died down.