Core Business Before Expansion

Shaan Puri and Sam Parr discuss when companies should expand beyond their core business, using examples like Amazon's AWS and Washington Post's Arc Publishing. They emphasize the importance of timing and stability before diversification.

• Core Business Priority

  • Focus on establishing and stabilizing main business first
  • Can't take eye off core business too early
  • Need to "keep the baby alive" in early stages

• Timing for Expansion

  • Wait until core business is mature (around 10 years)
  • Need significant resources and stability
  • Example: Amazon waited 10 years with 10,000 employees before launching AWS

• Resource Requirements

  • Large companies can dedicate significant resources
    • Amazon could assign 250 people to AWS
    • Small companies can't match this scale
  • Early-stage startups should avoid distractions
    • Limited resources need to focus on core business
    • New projects compete for attention with main business

• Business Stage Analogy

  • Early Stage ("Baby")
    • Needs constant attention
    • Focus on basic survival
    • Can't handle complex initiatives
  • Mature Stage ("Teenager")
    • More independent
    • Can handle multiple initiatives
    • Stable enough to explore new directions

• Success Factors

  • Must have battle-tested, refined product
  • Need established brand credibility
  • Requires stable core business that "won't die"
  • Should leverage existing infrastructure or expertise