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Brittle Points: How to make companies robust

Brittleness is when just one component breaking means the entire company fails. Learn some strategies for building robust companies.

Companies fail for all sorts of reasons. It’s unsurprising when they fail simply because the product didn’t work, or it didn’t solve a problem people wanted solved.

But sometimes they got all those things right, and business was starting to pick up, and then suddenly something broke, and it was all over. How does that happen?

  • The product was built on a platform, and the platform changed. A popular app drops to zero downloads after Apple builds it into iOS; a Google Workspace add-on drops to zero sales after Google builds that feature into Docs; a Twitter management tool breaks when Twitter removes functionality from their public API.
  • The initial marketing channel quickly saturated, so growth stalled at a non-zero but unsustainably-low rate.
  • The initial marketing channel was sustainable for a while, but got wiped away due to external forces: large bidders tripled the cost per click, Google’s SEO algorithm changed, the big industry event stopped happening, the link-sharing site became irrelevant, the hot blog lost its traffic, the magazine running the ads finally failed.
  • One big customer, representing 80% of total revenue, left. It wasn’t a mistake to sign that customer—it funded the company.
  • A key employee left the company. Early on, a 10x person can mint the company but also could be irreplaceable. A suitable replacement is too rare; it takes too long to find someone, convince them to join for almost no salary, and get them up-to-speed and productive.

I call these “brittle points”—places where sudden changes mean the company catastrophically fails, regardless how wonderful everything else is.

All young companies—and some mature ones—have dependencies like these. You can’t help it; you have to rely on other technology to build the product, services from vendors to deliver the product, and human beings to do work.

Let’s quickly see how engineers solve this problem with hardware (don’t worry, it’s not too technical!), and that will give us clues about how to solve all the other problems in that list.

A brittle server

Suppose I have a single server that runs my website. Any number of things can cause this server to break—a power failure, a network failure, a bad configuration change, too much traffic arriving at once, bugs in the code, and so on.

How do you make this system less brittle?

Consider power failure. Power can fail if the power supply1 inside the server burns up, or the power strip or power cord fails (maybe through a wetware failure like accidentally unplugging it).

1 This is the component inside the computer that receives the power cord; it converts the type of power provided by the city into the type of power needed by the other components.

We can address this brittle-point by having a second copy of the power components—a second power strip with a second cord plugged into a second power supply. This is, in fact, exactly what servers inside data centers do!

In short: redundancy—having two things that do the same job. It’s twice as expensive, but it buys you robustness. This is also what you do in airplanes.

But what happens if the city power fails? Data centers have their own gas-powered generators. Which means they also have to stock large amounts of gasoline. Gas-powered engines that are used infrequently have a tendency to stop working, so they also test and maintain those units. Data centers often have multiple generators. Robustness purchased at large, on-going expense.

In modern clouds we go yet another step further, because the entire data center itself is another brittle-point. So we have additional, identical servers in other physically-separate data centers that draw power and network connectivity from different vendors. But then you also need a system that knows how to direct traffic to only the servers that are currently available; another system! Which itself becomes a brittle-point, and so on.

This example is applicable to all of the causes of failure above.

Neutralizing brittle points

“One platform” is brittle, because if they forward-integrate (i.e. copy you), or remove APIs that you need, or themselves fail, that’s the end of the company. One solution is to be multi-platform2. Another solution is to only build on platforms where you have a high degree of confidence that the platform owners are committed to supporting their ecosystem by never directly competing with them, and in fact promoting them. (Salesforce is currently the best in the world at this.)

2 Example: At WP Engine, we now run on all three major clouds—AWS, Google, Azure. Example: Instead of a tool for listening and responding on Twitter, you also support LinkedIn, Threads, and Mastodon.

“One marketing channel” is brittle, because if anything happens to it, that could be the end of an otherwise-healthy company. The solution is to layer on additional marketing channels, so that variation in any one of them is not fatal.

“One big customer” is brittle. One solution is a long-term contract with a serious breakup clause—insurance to bridge the time it will take to gain replacement customers. Another solution is to prioritize accelerating sales until that customer represents a smaller percentage of revenue. Also up-front payments, so you have the cash-flow to invest in that growth right now. The typical attitude is, “We now have a large customer, so pour extra money into development to make sure we don’t lose it,” but the right attitude is to use that money to win other customers.

“One key employee” is brittle. Not only might they leave, but what if they just get sick or need to take a vacation? The usual refrain in the startup world is that none of these are options—everyone has to work 70+ hours/week to the exclusion of other things. Talk about brittle!

Solving these things takes time and money. These aren’t quick-fix solutions. You can’t just hire three more fantastic developers to create a robust engineering team, and you can’t just snap your fingers and find three new efficient, productive marketing channels.

Therefore, the right attitude is to maintain a list of these risks and then periodically ask: Which one is best to work towards right now?

For example, it’s cheaper and easier to experiment with new marketing channels than it is to find, interview, convince, and manage a second software developer, and plus if you can get a second marketing channel online, that will generate revenue, which in turn means you can afford a second software developer. In this scenario, the best thing is to focus all your energy on getting a second marketing channel working.

As you scale, the size of the “chunks” that create brittleness also scale, which creates new brittle things, and thus new risks and new investments. For example, with $260M in revenue in 2016, still growing at a blistering 60%/year, with a thousand employees, Hubspot was not brittle in any of the ways outlined above. But they recognized that they were a single-product company. At that scale, that’s a brittle thing: if there were a sea-change in the market for inbound marketing software, that could be fatal to Hubspot. It also limits long-term growth as the market matures and saturates. The way out—the redundancy—was to become a multi-product company, but not where one product is still 95% of revenue. They attacked that problem, and in 2024 it’s clear that they succeeded3.

3 See this article for data and discussion.

The biggest brittle point

Finally, on a personal note, there’s another “chunk-level” that’s even larger than all of the preceding, and it’s a brittleness that almost all founders suffer from, including myself. The chunk of “the entire company.”

This is a one reason why founders are almost always sad and sometimes permanently depressed even after a successful sale of a company. This was your “One Thing” for years. This is your identity, your life. You don’t have hobbies or even good friends anymore. You might have sacrificed family or health. Talk about a “One Thing.” Your entire life is brittle.

The solution here is not to have two companies or two jobs. That’s burnout; a lack of singular focus creates worse outcomes.

Rather, the solution is to realize that there were things you did and loved before and there will be things you will do and will love after. They might not all be the same things. You are inside a chapter in the book of your life. Even if one chapter is sad or has an unexpected twist, there’s the next chapter which you can look forward to, even if you don’t yet know how that story will unfold.

Robustness, not in many things simultaneously, but in things serially. That’s the wrong attitude for solving tactical problems at work, but it’s the right attitude for the arc of your life.

Back to today and the here-and-now. Go list all the brittle things you have today. Then tackle one or two of those things at a time—you have to manage risk, not try to eliminate all of it at once.

Be thoughtful, and build steadily away from brittleness.

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