Why Startups (and SMEs) That Don’t Run Growth Experiments Are Setting Themselves Up to Fail

Let’s cut straight to it: the fastest-growing startups didn’t get there by having perfect ideas from day one. They reached success by running a constant series of smart, fast, low-cost experiments. And this approach isn’t limited to new-age startups—it’s just as essential for SMEs and traditional businesses looking to stay competitive.

Over the years, I’ve been part of several startup journeys—from early stages to scaling phases. One clear pattern emerged from my experience: the ability to design and run experiments consistently sets winners apart. If you’re not learning and adapting faster than your competitors, you’re already falling behind.

Most Assumptions in Business Are Wrong

When we first built our product, I was convinced I knew exactly what users wanted. I did the research, talked to a few customers, and believed my gut was right.

But guess what?

Most of those assumptions were off target.

It wasn’t due to a lack of effort; it was because we built without a clear feedback loop. We were working in a vacuum, which is a risky place to be. In every startup I’ve been a part of, nearly every initial idea, pitch, or strategy ended up needing a change. The real challenge is figuring out:

How quickly can you identify mistakes and adjust without wasting time, money, or energy?

That’s where experiments come in.

What Does "Running Growth Experiments" Mean?

Running experiments isn’t just about testing whether a blue or green button gets more clicks. It means putting your ideas through tests that help you gather real feedback and uncover practical insights. It’s about replacing assumptions with evidence and guesswork with learning.

In my journey, our experiments included:

• Testing different landing page designs and messages to learn which narratives truly resonated with our audience.

• Running pricing experiments on a large-scale subscription platform. We tested various price points and offerings—from monthly subscriptions to annual plans with bonus features—to see what customers found most attractive.

• Experimenting with recommendation algorithms. By tweaking how suggestions were made on our platform, we found new ways to boost engagement and help users discover content they loved.

• Adjusting onboarding methods by comparing the effect of personalized onboarding calls against automated email sequences.

Each test pointed us to a specific lever—small changes that could drive big results.

Why This Applies to SMEs and Traditional Businesses Too

You might wonder: “This sounds great for tech startups, but my business is a small consulting firm, local service provider, or a well-established SME.” The simple truth is:

Every business is a startup when it comes to trying something new.

Today’s market is fast-paced. If you’re not evolving and learning quickly, you risk being left behind by digital-native brands and tech-enabled competitors. The same experimental mindset that helps a software startup find its footing can also transform a long-established business.

Consider these examples:

• Testing different versions of your sales pitch with different client segments.

• Sending out varied newsletters in tone and content to see which ones get more clicks.

• Introducing a new service package to a small group of loyal customers before rolling it out company-wide.

These are simple experiments that yield valuable insights, regardless of your company size or industry. The businesses that thrive aren’t simply those with the most cash—they’re the ones that learn fastest.

Learning from the Trenches: Real-World Experimentation

The journey hasn’t always been smooth, and most experiments fail. But each failure taught us something valuable.

At one stage, we worked on a large-scale subscription platform. We ran extensive pricing experiments to understand what price points and product offerings would click with our customers. We tried different tiers and bundled features to determine which combinations were the most appealing. One test revealed that customers preferred a slightly higher price when it came with exclusive content and benefits, while another showed that a lower introductory rate significantly improved sign-ups.

We didn’t stop there. We experimented with several landing page formats—keeping some minimal and straightforward, while making others more detailed. The goal was to see which approach best communicated our value. The results were clear: a clean design with a strong, direct message converted better than pages crowded with too much information.

Another key test was on our recommendation algorithm. We played around with how content was suggested to users. By shifting from a generic “popular posts” feed to a more personalized set of recommendations, user engagement shot up noticeably. People stayed on the platform longer, and the data showed they were more likely to explore additional features once they found content relevant to them.

These experiments weren’t just about tweaking numbers—they were about understanding the right levers to pull to drive growth. The data from these tests directly influenced strategic decisions and led to more effective product iterations. And for me, personally, they solidified the importance of never stopping the pursuit of learning.

Think about it: What assumption about your product or service might be holding you back? What simple experiment could you run this week to challenge that belief?

What Makes a Good Experiment?

Over the years, I’ve developed a simple checklist for designing experiments that deliver valuable insights:

1. Clear HypothesisStart with a defined question. What exactly are you trying to learn?

2. Ease of ExecutionCan the experiment be set up quickly? Ideally, you should be able to see results in less than a week.

3. Measurable OutcomeEstablish clear metrics. Define what success or failure looks like from the beginning.

4. Actionable InsightEnsure the experiment tests a hypothesis that matters—one that, if proven true, gives you a lever to drive change.

Think of your business as a machine with many levers; experiments help you identify which levers truly make a difference.

Building a Culture of Experimentation

Building a culture of experimentation is not just for large teams. It’s a mindset that everyone in your organization can adopt, whether you’re a solo founder or managing a small team. Here are some simple practices that can help:

• Start with a Question Each WeekBegin your week with one key question: “What don’t we know that could change what we build?” This sets the stage for ongoing learning.

• Document Every ExperimentEven if an experiment fails, write it down. Failures are as valuable as successes when it comes to learning what works.

• Celebrate CuriosityReward curiosity and the willingness to try new things. In our experience, the greatest innovations often come from unexpected experiments.

• Use Accessible ToolsThere’s no need for a huge budget or a fancy growth team. Use simple tools like easy website builders, email marketing platforms, and basic analytics tools. This approach works wonders for both digital startups and traditional businesses.

The key is not to fear failure but to view it as a necessary step in the learning process. Every experiment brings you one step closer to understanding your business and your customers better.

Final Thought: Learning Beats Hope Every Time

I’ve learned firsthand that relying on hope or intuition alone is a recipe for stagnation. Simply assuming that your market will “just get it” rarely pans out.

What makes the difference is building a system that constantly learns and adapts. Whether you’re part of a tech startup, a long-standing SME, or a traditional business, running experiments is your key to discovering what really works. It’s your fast track to finding product-market fit, refining your strategy, and driving real growth.

If you’re not experimenting, you’re not learning. And if you’re not learning, you’re not winning.

So here’s a challenge: What’s one experiment you can run this week to learn something new about your product, pricing, or customer behavior?Take that step, learn from it, and start tweaking the levers that drive your success.

Remember: every bit of data you gather is a stepping stone towards a better, more robust business.

Building a business? We would love to know more about it. Say hi on karthiksake@growthnursery.com