According to CEO of Rakuten, Hiroshi Mikitani, the secret to growing your startup is by following his theory called the Rule of three and 10. Basically, this rule means that businesses start to fall apart once they achieve multiples of three, as well as powers of 10, in any one part of the business. The context of the rule is usually around insufficient employee counts for the amount of work that needs to get done. Budding entrepreneurs should consider this rule when assessing their business processes and what they need to do to continue to grow and succeed.
Key Takeaways:
- Following the same processes when you have three employees will not work when you get to 10, 30, 100, or 300 employees
- A boom in customer base could mean big changes in your business operations such as hiring and firing of employees
- Keep in mind if your business moves from large to small, the processes that worked as a large organization could bring down a smaller one
“What is the Rule of 3 and 10? In brief, the rule is that businesses break down when they reach multiples of three and powers of 10 in a part of their business.”
Read more: https://www.inc.com/melissa-thompson/how-to-grow-your-business-using-rule-of-3-10.html