By: Joshua Finley

Sanjeev Singh Sahni, a seasoned executive with over 20 years of experience scaling tech-powered businesses, currently leads Wayfair Professional, the B2B division of Wayfair. Here, Sahni shares his insights on identifying the next significant growth opportunity, commonly referred to as the S-curve of growth, after a company hits its first billion in growth.

Revisiting the Product Market Fit

The first step Sahni advocates is revisiting the product market fit. “When companies initially start, they understand what they are offering and which market segments they are targeting,” Sahni explains.  In the early stages, a company’s product or service typically meets a specific need in the market, capturing the interest of early adopters who are enthusiastic about new and innovative solutions.

However, as the business scales, the relevance of the product might shift, better suited to a specific niche or requiring significant changes. Early adopters’ needs might differ from the current market’s demands. Sahni emphasizes, “Revisiting the product market fit at this stage is crucial to ensure your product remains relevant and continues to address the largest target addressable market.”

Refreshing the Go-to-Market Strategy

Once the product market fit is reassessed, the next critical focus should be on refreshing the go-to-market strategy. This step is essential for scaling businesses aiming to maintain momentum and drive deeper market penetration. In the early stages of a company’s growth, the strategy often involves casting a wide net to capture as many segments and geographies as possible. This broad approach helps in gaining market share and establishing a foothold across diverse customer bases.

However, as companies grow and mature, this broad strategy may become less effective. “At a certain stage, you saturate one or the other segment,” Sahni notes. This saturation means that the initial broad-based efforts have reached their limits, and continuing with the same strategy might lead to diminishing growth. The next phase requires a more refined and focused approach to ensure sustainable growth.

People: From Scrappy Leaders to Scale Builders

The final piece of advice from Sahni revolves around the importance of leadership. In the beginning, companies benefit from “scrappy” leaders—those who are highly flexible and adept at addressing the immediate needs of customers and the company. However, as the company matures, this approach can lead to technical debt and inefficiencies. “For your next S-curve, you need people who are platform builders and not just scrappy solution providers,” Sahni asserts. He emphasizes the need for leaders who can build scalable platforms and infrastructure, ensuring sustainable long-term growth.

By focusing on leadership evolution, companies can ensure that they are not only prepared for immediate challenges but are also building a foundation for sustainable growth. Leaders who can build scalable platforms and infrastructure are essential for navigating the complexities of an expanding business, enabling the company to achieve its full potential and thrive in a competitive market.

Preparing for Your Company’s Future

Finding the next S-curve of growth after reaching the first billion in growth involves a strategic reevaluation of product market fit, a refresh of go-to-market strategies, and a transition in leadership. Sanjeev Singh Sahni’s insights provide a clear roadmap for companies navigating this critical, yet exciting, phase. By focusing on these key areas, businesses can position themselves to capture new growth opportunities and sustain their upward trajectory.

To learn more about Sanjeev Sing Sahni, connect with him on LinkedIn.

Published By: Aize Perez