What if I told you that one of the world’s most popular communication platforms started as a failed gaming company?
Yes, you read that right.
Slack, now valued at billions, was born out of a gaming disaster called Glitch. The founders didn’t just weather the storm—they thrived by pivoting to solve a completely different problem.
This is more than just an inspiring tale; it’s a blueprint for startup founders.
Let’s break down Slack’s remarkable journey and highlight the actionable strategies that any startup can use to replicate its success.
Recognizing the Moment to Pivot
In 2009, Stewart Butterfield, co-founder of Flickr, embarked on his next venture—a massively multiplayer online game called Glitch. Despite a talented team and innovative gameplay, Glitch failed to capture a sustainable audience. It was shut down in 2012. The game itself might have been a failure, but one thing stuck: the internal communication tool the team had built to manage their project remotely. This tool would soon become Slack.
Takeaway for startups: Don’t fear failure. Often, the greatest successes are born out of failed ventures. If your product isn’t taking off, be willing to pivot. Assess what works, and consider whether that element could serve a different, broader market.
Solving a Widespread Problem
When Glitch failed, the team turned to something almost every company struggles with—communication. The internal tool they’d built to chat, share files, and manage workflows was miles ahead of email, which was the dominant form of business communication at the time.
They identified a massive pain point: inefficient communication between teams. Rather than building another game, they zeroed in on this problem and decided to turn their in-house tool into a polished product for the world to use.
Takeaway for startups: The most successful companies solve real, painful problems. What challenge do your users or your industry face that no one has solved well? If you can answer that question and provide a solution, you’re on the path to success.
Leverage What You Already Have
After Glitch, Butterfield and his team didn’t start from scratch. Instead, they built on what they already knew—how to foster effective remote communication. They took the elements that worked in Glitch’s internal tool and refined them into a standalone product. This allowed Slack to come to market faster and with a deep understanding of its users’ needs.
Takeaway for startups: You don’t need to start from zero when pivoting. Often, you already have something of value—whether it’s a tool, a skillset, or knowledge—that can be repurposed into your next big thing. Build on what you know.
The Power of User Experience
Slack’s rise wasn’t just about solving a problem—it was about how well it solved it. The team put an incredible emphasis on user experience (UX). In an age where business software was often clunky and overly complex, Slack was sleek, simple, and even fun to use.
The intuitive interface allowed companies to integrate Slack into their daily workflows with ease. No long tutorials, no complicated onboarding—just a seamless experience that fit naturally into how teams worked.
Takeaway for startups: User experience is everything. No matter how powerful your solution is, if users find it difficult or frustrating to use, they’ll abandon it. Invest in design and simplicity. Make your product a joy to use.
Build a Community, Not Just a Product
Slack didn’t just create a product; it built a culture around it. The platform’s quirky design and fun features (remember the loading screen messages?) made it more than just a tool—it became a social hub for teams. Slack channels became places where work happened, but so did company culture.
This wasn’t an accident. Butterfield and his team understood the importance of community and collaboration. They weren’t just selling software; they were fostering a new way of working.
Takeaway for startups: Culture and community are key. Building a strong community around your product can foster loyalty and differentiate you from competitors. Think about how your product can enhance, not just fit into, your users’ lives.
Scalability Is Key
Once Slack found its product-market fit, growth was rapid. But here’s the critical part: the product was built to scale from the beginning. They weren’t just targeting small teams—they also made sure the platform could handle large enterprises. Features like admin controls, security, and third-party integrations made Slack a must-have for larger organizations.
This attention to scalability allowed Slack to grow with its users, making it just as effective for teams of five as it was for companies with thousands of employees.
Takeaway for startups: Always think about scale. As you build your product, make sure it can grow with your user base. What works for 10 users might not work for 1,000. Plan ahead and ensure your infrastructure, features, and systems can handle success.
Timing Is Everything
Slack didn’t just get lucky—it launched at the perfect moment. Remote work was on the rise, and companies were increasingly distributed across multiple locations. This created the perfect environment for a tool like Slack to flourish.
Butterfield and his team didn’t need to create a demand—they tapped into an existing one. By understanding the market and its needs, they positioned Slack as the solution at just the right time.
Takeaway for startups: Timing can make or break a product. Stay attuned to market trends and emerging needs. Sometimes, the right product launched at the wrong time will fail. Make sure you understand when the market is ready for your solution.
Don’t Just Build Features, Build Solutions
Slack’s developers weren’t focused on adding feature after feature. Instead, they built solutions that worked for their users. They understood that less could be more, and they focused on refining a handful of key features that addressed the core pain points of team communication.
Takeaway for startups: Avoid feature bloat. Don’t overwhelm users with endless options. Focus on a few core features that truly solve your users’ biggest problems. Simplicity and focus can be your biggest assets.
The Power of the Brand
One of Slack’s most interesting elements was its branding. It wasn’t just another boring enterprise software. Slack had personality—its fun, quirky tone made work feel less like work. They didn’t just sell software; they sold an experience, and users loved it.
The human touch in their communication, combined with delightful features like custom emojis, made Slack a tool people actually wanted to use, which contributed massively to its virality and growth.
Takeaway for startups: Don’t overlook branding. Create a brand that resonates with your users emotionally. Be authentic, engaging, and memorable. A strong brand can make a huge difference in how your product is perceived and adopted.
Turning Setbacks Into Success
Slack’s story is one of resilience, creativity, and foresight. What started as a failed gaming company turned into a billion-dollar communication platform because the team knew how to pivot, build on their strengths, and solve real problems for their users. They weren’t afraid to scrap their original idea and turn failure into fuel for innovation.
Takeaway for startups: Failure isn’t the end—it’s a stepping stone. If your startup isn’t working as planned, don’t give up. Assess what’s working, pivot when necessary, and focus on solving real problems with a user-first mindset. With persistence, your next venture could be the one that changes everything.
Slack’s pivot to success is a reminder that the road to innovation is often bumpy, but with the right mindset, a willingness to adapt, and a commitment to your users, any startup can create its own billion-dollar story.
