Dear Betterfly Team,
The last few months have been incredibly transformative for our company. We've faced challenges that have pushed us to make important decisions and have ultimately set us on a path for growth and success. As we move forward, I'm excited to share some thoughts on our strategic direction and the incredible opportunities that lie ahead.
To begin, I want to highlight the importance of adopting a 10x mindset and explain how, as a team, we can apply the principles behind this approach to take Betterfly to new heights.
10x mindset
Despite its paradoxical nature, striving for 10x growth is easier than 2x growth. This seemingly counterintuitive concept is rooted in the idea that setting ambitious goals propels us to think creatively, innovate, and break free from traditional constraints. Adopting this mindset encourages collaboration, risk-taking, and fosters an environment that leads to fulfilling experiences and greater long-term success.
When we aim for 2x growth, we can become trapped in linear thinking and intense competition, focusing on incremental progress rather than transformative change. Conversely, targeting 10x growth encourages us to think creatively, collaborate, and embrace risk-taking, fostering a mindset that cultivates innovation, purpose, and ultimately leads to more rewarding experiences and personal fulfillment.
Recently, I shared with my children the importance of adopting a 10x mindset. I explained this concept using an example of something they love doing: building LEGO towers. I explained that aiming for a 2x increase in height compared to their previous tower, might simply involve stacking more bricks on top of each other, resulting in a taller but relatively basic structure. However, setting a goal of a 10x increase in height, challenges us to think more creatively and explore innovative building techniques. Achieving this goal, may need researching different support structures, watching online tutorials, joining LEGO building clubs, experimenting with various brick patterns for added stability, and incorporating aesthetic elements to create a LEGO masterpiece. By aiming for a 10x improvement, we push ourselves to expand our building skills and unleash our creativity, leading to a more satisfying and rewarding LEGO-building experience.
The idea of aiming for 10x growth instead of 2x can make a significant difference in how we approach our goals, regardless of whether you’re building LEGO creations, pursuing your passions or building a company like Betterfly. By setting ambitious goals, we not only make our journey more exciting but also sharpen our focus on what truly matters. Let’s explore why this is so and the benefits it can bring to individuals and organizations alike:
1. Mindset shift: 10x growth is easier than 2x growth because it requires a complete shift in mindset, leading to innovation and transformative results. (e.g., SpaceX revolutionizing the space industry with reusable rockets)
2. Bigger thinking: Pursuing 10x growth necessitates thinking bigger and bolder, challenging existing assumptions, and exploring innovative solutions. (e.g., Google's ambitious "Moonshot" projects)
3. Collaboration: Striving for a tenfold increase encourages collaboration among team members, who are inspired by a shared vision of achieving something extraordinary. (e.g., Apple's development of the iPhone, which combined multiple technologies)
4. Growth mindset: Aiming for 10x growth fosters a growth mindset and promotes creative problem-solving. (e.g., Netflix disrupting the entertainment industry with streaming services)
5. Breaking comfort zones: 10x growth helps individuals and organizations break free from their comfort zones, while 2x growth often keeps them within familiar boundaries. (e.g., Amazon expanding beyond books to become an e-commerce giant)
6. Limiting innovation: Focusing on 2x growth can limit innovation and hinder long-term success by encouraging incremental improvements and reliance on familiar strategies. (e.g., Blockbuster failing to adapt to the digital age and losing market share)
7. Fear of failure: Pursuing 2x growth may result in a fear of failure or aversion to risk-taking, preventing individuals and organizations from realizing their full potential. (e.g., Kodak's reluctance to embrace digital photography, leading to its decline)
8. Ambitious goals: Setting ambitious goals, such as 10x growth, can lead to groundbreaking achievements that revolutionize industries and create lasting impact. (e.g., Tesla's mission to accelerate the world's transition to sustainable energy)
9. Embracing failure: The pursuit of 10x growth involves embracing failure and learning from setbacks, which contributes to resilience and adaptability. (e.g., Dyson's development of the
bagless vacuum cleaner after thousands of failed prototypes)
10. Challenging conventions: By challenging conventional wisdom and daring to dream big, individuals and organizations can unlock their true potential and achieve unparalleled success. (e.g., Airbnb changing the way people travel and book accommodations)
2023: Simplify to multiply
For those of you who have been with Betterfly for 3+ years, this concept is not unfamiliar. In Q1 2020, we went through a similar exercise, asking ourselves how we could grow 10x from where we were at that moment. The result was a complete transformation of our company. We changed our name from Burn to Give to Betterfly, revamped our business model, and refined our overall strategy. This bold move led to a staggering 30x growth over the following two years, a testament to the power of the 10x mindset.
Over the past quarter, we conducted a detailed analysis of our key metrics, customer insights, and the learnings gathered from our operations across Latin America and Europe over the past two years. Additionally, we considered the potential impact of AI on strengthening our key competitive advantages and technological moat. A key aspect of the strategic exercise was asking ourselves what we must do to 10x our company in the years ahead.
After conducting this deep dive, we’ve made the decision to steer Betterfly towards a more efficient, product-led approach, with an emphasis on the SMB segment. To accomplish this vision, we will be eliminating non-essential activities, streamlining operations, and strategically reallocating resources across the organization. In other words, we will simplify to multiply focusing on the core elements and tasks that drive this vision.
The attached strategy memo includes details on why we believe this strategy is the right decision, at the right time for Betterfly, as well as how uniquely positioned we are to disrupt a trillion-dollar industry across Latin America, Europe, and globally. We have also outlined our plans of accelerating our product and technology infrastructure to bring our Betterfly Effect to every corner of the globe in 2024.
Final thoughts
As we look to the future, we stand at the precipice of an incredible opportunity to become the world’s leading employee benefits platform and to positively impact millions of lives with our work. This is not just a lofty goal; it is well within our grasp. We have all the necessary ingredients to make this happen: an experienced and talented team, the right partnerships, financial resources, an engaging product, scalable technology, and clarity of purpose.
The coming 12-18 months will be a period we will never forget. Rapid advancements in technology, particularly AI, will make this time more exciting than ever before, opening up possibilities that seemed impossible just months ago. I hope that when we look back on the coming years, we do so with pride, knowing that we rose to the challenge and seized the opportunities before us. To achieve this, it's critical that we adopt the right mindset, which includes genuine passion for our work and mission, relentless work ethic, drive, and commitment; embracing adaptability and a growth mindset, as well as being open to learn and tackle new challenges head-on, all while maintaining a focus on execution.
I invite everyone to approach the coming months with enthusiasm, confidence, and a shared sense of purpose. Together, we will write the next chapter of Betterfly's story, and in doing so, we will leave an indelible mark on the world. The journey ahead promises to be thrilling, challenging, and rewarding – a once-in-a-lifetime opportunity to create lasting, positive change.
Onward & Upward!
Eduardo della Maggiora
Founder and Chief Executive Officer
May 2023