5 lessons in building a billion-dollar business

Building a billion-dollar business is a journey of growth, resilience, and learning. At our 2024 Growth Summit Gurman Hundal, co-founder of MiQ, previously backed by ECI, shared valuable lessons from his personal experience.

From starting MiQ in 2010 with co-founder Lee Puri, to growing the company into a global leader in programmatic advertising with over $100 million in EBITDA, Gurman’s story offers rich insight into how to scale a business.  

Here are five key lessons he shared on how the MiQ team delivered that success: 

1. Diversification is key to resilience and growth

One of the most critical factors in MiQ’s success has been its focus on diversification in three key areas – geographies, client types, and product offerings – which have been essential for driving both growth and stability. By expanding into new markets, such as North America, and diversifying its client base, MiQ was able to protect itself from over-dependence on a single revenue stream or market condition.

MiQ’s expansion into smaller cities in the U.S., such as Kansas City and Cleveland, proved to be highly effective. There was often more opportunity to be had in some of these US cities than in expanding into whole new countries. The lesson here is clear:  Diversification should be intentional. Businesses that focus on strategic growth and carefully assess where to expand can unlock new opportunities while maintaining resilience. As MiQ’s approach demonstrates, the right markets aren’t always the most obvious ones.

2. Go big in big markets

The second major piece of advice is to go big in big markets. For MiQ, this meant fully committing to the U.S. market – the largest advertising market in the world. Gurman learned that scaling in a significant market not only drives revenue, but also builds credibility, helping the business attract larger clients, top talent and strategic partnerships.

However, succeeding in such markets requires more than just an entry, you have to commit fully. Gurman personally moved to the U.S. to spearhead MiQ’s expansion, ensuring that the company could adapt to the market’s demands and seize the opportunities present. This kind of dedication was essential to make a meaningful impact.

3. Building robust operational foundations

As MiQ scaled, Gurman learned the importance of building robust operational departments. In the early stages, he and his partner Lee managed most of the operations themselves, but as the company grew, they realised the necessity of bringing in specialised teams for finance, HR, and talent management. Gurman said that, earlier in his career, he felt that to be a good CEO you also had to be a great CPO, CFO, CRO etc, but now he understands that to be a good CEO you must have really good leaders in those areas.  

A strong finance team, for instance, helped MiQ manage the complexities of expanding globally while maintaining profitability. Having a well-structured finance and talent departments allowed Gurman to focus on strategic growth rather than getting bogged down in operational details.

4. The power of team and culture

Building a resilient team and maintaining a strong company culture were central to MiQ’s success. MiQ achieved an impressive 85% employee retention rate, a figure Gurman is rightly incredibly proud of. This high retention rate was due in large part to MiQ’s focus on creating an environment where top talent wanted to stay and grow with the company.

One of the cornerstones of MiQ’s culture is a balance between ambition and safety. Gurman encourages his teams to take risks and make mistakes and emphasises that failure is part of the process. He built a culture where making some mistakes was not discouraged as it was seen as a positive sign of courage and innovation. Simultaneously, MiQ developed a set of “anti-values”— behaviours such as ego and territorialism that were discouraged to foster a collaborative and open working environment.

5. Preparation and diligence pay off

The final key lesson is that preparation and diligence are critical when scaling a business, especially when pursuing a capital event, such as private equity investment. MiQ spent over a year preparing for their first private equity investment from ECI, focusing on building out robust financial systems, data reporting, and internal processes.

One strategy that MiQ employed was to use a refinancing process as a “dry run” to prepare for larger future events. By treating the refinancing process as a rigorous test of their diligence capabilities, MiQ ensured that when the time came to engage with investors, their data and narratives were well-organised, leading to a faster and more successful deal process.

Preparation is not just about the numbers, it’s also about building relationships. Building strong personal relationships with potential investors, meeting face-to-face or via Zoom to understand if they were the right partners for MiQ. These personal connections, paired with strong diligence, allowed MiQ to find the right investors and scale the business alongside them.