Top down vs. Bottom Up
Sunday, July 30th, 2006I have a friend who is currently working at AdMob, and it looks like to me they’re doing some good work over there. They are using, what I would call, the “Bottom Up” method of building a company and platform. They started small, let the business grow according the existing market conditions, and now are on the cusp of being massively successful. I don’t know how much money was used to found AdMob, but I’m judging by the blog that the business started out with a relatively small amount of investment, and has been bootstrapping its efforts with profits. This is the same method I would use.
I, on the other hand, work for a company that would take what I call the “Top Down” approach. This means, that my company would start out by finding large advertising partners, begin long term studies and revenue projections, and then begin building the product from the existing advertising partners and revenue projections. There are reasons why we have to do it this way, and I fully understand the reasons. In some cases, we have no choice.
However, it seems clear to me that “Top Down” is almost always slower to innovate than “Bottom Up”. Entrenched corporate polices prohibit my company from really starting something like AdMob (not that we’re interested). It would be hard to convince the appropiate board members, sales staff, and IT managers to take a flyer on a product like AdMob.
I think this all points to a certain sweet spot for a size of the company, and it’s ability to innovate. If I had to guess, I’d say the perfect sized company for innovation would be made up like this:
- 1 Founder/CEO who has the vision
- 1 Marketing guy who also handles most of the general business functions
- 3 Senior developers with copious amounts of skills
- 4 Junior developers who could innovate the designs of the senior developers
- 1 Sysadmin to handle setting up servers, etc.
What do you think?








