Excellence Sparks Momentum

Context

Notion has become a staple in the world of productivity tools, renowned for its flexibility and seamless blend of note-taking, task management, and collaboration. The platform appeals to a wide range of users – from solo entrepreneurs to large enterprises. But behind its meteoric rise is a story of resilience, reinvention, and hyperturnaround. 

In 2015, Notion stood on the brink of collapse. Financial constraints, technical missteps, and an overly ambitious vision nearly drove the company to bankruptcy. Yet, within a few years, it transformed into a multi-billion-dollar success.

Real-Life Story

Notion was founded in 2013 by Ivan Zhao and Simon Last with the vision of creating a tool that could replace multiple productivity apps with a single, all-in-one workspace. The idea was bold, but execution proved far more challenging.

From the outset, Notion struggled with a flawed technological foundation. The app was built on Polymer/Web Components, a technology that was rapidly evolving. This led to frequent crashes and an unstable user experience. As Zhao later described it, their platform was built “on shifting sand,” making it difficult to maintain and scale.

Compounding these issues was the sheer complexity of the product. Notion’s early iterations overwhelmed users with too many features and a steep learning curve. While the founders saw their product as the “Lego of productivity tools,” users found it confusing and difficult to adopt.

A Financial Cliff Edge

Like many startups, Notion secured early funding: US$2m in seed capital. By 2015, however, the company was burning through cash with little to show for it. Growth had stagnated, the product was struggling, and the company was running out of runway. With no choice but to cut costs, the founders made the gut-wrenching decision to lay off their entire team and sublet their San Francisco office.

Rather than throw in the towel, Zhao and Last took a radical step. They relocated to Kyoto, Japan, where they could live frugally while rebuilding Notion from the ground up. It became a period of monastic focus. 

The two worked in isolation as they tore apart the old codebase and started fresh. 

The move to Japan, however, wasn’t just about cost-cutting. By removing themselves from the distractions of Silicon Valley, they gained clarity on what truly mattered – building a product that users actually wanted.

The Turnaround: A Strategic Reinvention

Kyoto became Notion’s proving ground. In just over a year, the duo developed Notion 1.0, a more refined, stable, and user-friendly product. The relaunch in 2016 won Product Hunt’s #1 Product of the Day, marking the beginning of Notion’s rise.

This time, the focus was on simplicity and usability. The new Notion featured a cleaner interface, more intuitive navigation, and more powerful customisation options that didn’t overwhelm users.

The key was balancing flexibility with ease of use to allow users to mould Notion to their needs rather than forcing them into rigid workflows.

Notion also made a strategic bet on community-driven growth. Instead of traditional advertising, the company relied on word-of-mouth marketing and organic advocacy. The endorsement of tech investor Naval Ravikant on X gave the product a significant boost, sparking interest among early adopters.

Beyond that, Notion actively nurtured its user base by fostering a community of ambassadors – fans who ran forums, created templates, and shared tips on social media. This grassroots marketing approach turned users into evangelists and accelerated Notion’s adoption.

The Power of a Lean Team

One of Notion’s most counterintuitive moves was keeping the team small, even as it grew in popularity. Inspired by their Kyoto experience, Zhao and Last believed in hiring deliberately, prioritising culture over rapid expansion. As Zhao once put it: “Our team is the product that builds the product.” 

This craftsmanship-first mindset ensured that every hire contributed to the company’s core philosophy of excellence.

Notion then refined its freemium model and offered a generous free tier that got users hooked before converting them into paying customers. This approach made it accessible to individuals and small teams while securing revenue from enterprises that needed premium features.

By 2020, Notion had not only stabilised but soared – securing a $2bn valuation.

PostScript: Today, Notion is one of the most valuable productivity companies, but it isn’t resting on its laurels. The company is aggressively expanding its international footprint, particularly in Japan, where it has established a local subsidiary. It is also integrating artificial intelligence to enhance productivity, with features like automated content generation and smarter search capabilities.

Notion’s journey from near-bankruptcy to a multi-billion-dollar company proves the power of a good turnaround strategy, disciplined execution, and customer obsession. At a time when tech startups often chase hypergrowth at any cost, Notion’s story is a refreshing reminder that sometimes, slowing down is the fastest way to succeed. 

For entrepreneurs, investors, and business leaders, Notion offers a compelling case study: when faced with failure, reinvention – not retreat – is the way forward.

Key Lessons

1) Stay Lean and Nimble

A smaller, more focussed team can often execute better than a bloated one, especially during crisis periods. Notion’s decision to lay off staff and relocate to Kyoto was painful but necessary. Sometimes, scaling down is the only way to regroup and refocus.

2) Listen to the Market, Not Just Your Vision

Early on, Notion was too focussed on its grand vision rather than user needs. The pivot to simplicity and usability was what ultimately won the market.

3) Community is a Competitive Advantage

In nurturing a strong community, Notion turned users into brand advocates and reduced reliance on expensive marketing. An engaged user base can be a company’s most valuable marketing asset.

4) Product First, Marketing Second

A great product creates its own momentum. Notion’s turnaround hinged on product excellence before aggressive marketing.

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Until next week, may the force be with you.

Kevin

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