Suppose you are launching a food delivery startup and are targeting one city. You will have better chances of collaborating with local restaurants, eateries and cafe’s and able to deliver the orders in a specified location.
Once you know the loopholes, the problems and issues faced in collaboration, late and failed deliveries, customer feedback, and customer retention strategies, you will know that you are ready to launch similar operations in another city or maybe expand it to another state.
However, had you launched a nationwide food delivery operation, you may have run into multiple problems and might have to wind up your game.
The mantra of success for any business lies in creating adaptors or clients who are able to sustain your business and help you grow therefrom. A dedicated launch catering to a smaller clientele is always preferred rather than going global without any actual business done and issues faced and resolved.
Even if you go global or national and taste success early on, you are bound to have serious troubles because the growth would not be sustainable. There’s always a pattern of adoption of your product or services that you will see, and you better stick to it to avoid shocks at various intervals.
Even if you take the examples of the bigwigs of in the ernet who have now achieved global success and market-share including Facebook, Google, etc., you will notice they started from smaller territories, product or feature range, and grew on slowly. Like many other giants, Facebook bought a lot of startups which threatened its business model or added a value to its customers—Instagram and WhatsApp are two such examples.
So, if you are a startup and are planning to go national or global within 3 months of the launch, better hold your reins and gain experience from a smaller and controlled launch. Implement those learnings as you grow and you will have better chances of succeeding and fewer chances of failure.