When Groupon started, they didn’t start big. They tested their thoughts and slowly calibrated based on the response they received from their focus group before expanding their business idea originally named The Point. As a matter of fact, the USP of Groupon was not at the core of their original idea. It evolved from it. This meteoric rise didn’t start from a whimsical decision to invest big on an idea; it happened organically by reducing risks at every point to achieve a sustainable business process.

Let’s break it down further – The Point focussed on grouping people to focus on a goal which could be anything – from social cause to group needs. The idea was that a group of people usually have greater bargaining power than an individual. It was essentially a low-risk small idea that didn’t perform well. However, an important lesson was learned. People were motivated to buy things as a group. This learning evolved into the current model of Groupon.

Similarly, when Nike started it started as a small company called Blue Ribbon Sports. In initial days, it started a business as a distributor of a Japanese Shoe company. In its journey from a small company to the behemoth, it is now, Nike has taken many leaps of faith. However, the calculation behind those decisions was grounded in incremental progress and market realities.