Scaling Smarter: Lessons from Martyn Dawes on Category Creation and Strategic Growth

In our latest online workshop, we were joined by Martyn Dawes, founder of Coffee Nation, for a powerful session on what it really takes to scale a business, beat the odds, and build something that lasts. 

The workshop, ‘Scaling Smarter’, explored why so many startups fail – even those with venture backing – and what founders can do to avoid the most common pitfalls. With 90% of startups and 75% of VC-backed businesses failing, the group focused on how to prove product-market fit early on and avoid running out of cash before proving the concept. 

What Makes a Business Survive? 

Martyn kicked things off by highlighting a stark truth of entrepreneurship: most businesses don’t fail due to a lack of hard work – they fail because they don’t prove that anyone wants what they’re offering before running out of money. This set the tone for a workshop grounded in real-world insight, not theory.

He shared his own inspiring journey building Coffee Nation, the UK’s first self-serve gourmet coffee concept, which grew to 600 locations and over 100 million customers before being sold to Costa Coffee (and later Coca-Cola), but suffered many setbacks and cash crunches before finding success. By the time of its sale, Coffee Nation’s self-serve format was more profitable than Costa’s entire barista-led estate – a testament to the power of smart, consumer focused category creation – and timing. 

Creating a Category and Staying There 

According to Martyn, more than 75% of the economic value from venture investment goes to businesses that become “category kings.” But creating a new category isn’t an easy feat. 

Martyn explained how Coffee Nation defined its space as “self-serve gourmet coffee”, something that didn’t exist at the time. It uniquely combined the quality of coffee shops with the convenience of a vending machine, and while it took time to shift consumer perception, the success was long-lasting. Even decades later, no true competitor has managed to replicate the model at scale. 

The conversation touched on how powerful storytelling embeds a category in the minds of consumers, and founders need to be relentless in relaying their story and consistent in defining the problem they’re solving – otherwise, market momentum is easily lost. Think great coffee, made fast and in useful locations like motorway services.  

Beyond Product: Why Customer Experience and Brand Matter 

Throughout the workshop, Martyn and others emphasised that product alone isn’t enough. Many founders fall into the trap of focusing on features and technology without paying close enough attention to the overall customer experience or how their brand is perceived. For example, customers don’t care how interesting and complex the tech required to cool the milk in your self-serve coffee machine may be. They care about their experience: did the product taste good, and was the user experience seamless? This becomes your brand.  

Now, a lack of brand focus can open the door for cheaper competitors to undercut your offering. Investing in brand identity early, and ensuring it aligns with real customer problems, not your idea of a solution, is a critical defence against market erosion. 

Martyn encouraged founders to be bold and even provocative with their branding to stand out in crowded markets. He also challenged attendees to think about how they could better solve customer problems in a way that sets them apart. 

Retail, Resilience, and Strategic Thinking 

Several founders raised concerns around working with retailers, the difficulty of market positioning, and the sustainability of business models post-pandemic. In response, Martyn shared insights from his experience in managing risk by taking on logistics and machine maintenance early on, which helped build trust with his retail partners. After all, creating a category has the added layer of requiring significant consumer and retailer education and brand building with a view to building trust.  

He also reminded the group that resilience is often about clarity – knowing what you’re building, why it matters, and how it’s different. Many businesses may fail at a later hurdle because they don’t take the time to think strategically or reassess their positioning in a changing market. There were many moments throughout the Coffee Nation journey that required them to zoom out and respond to what was in front of them – a good reminder to business leaders that their time is their most significant weapon. 

The Importance of Strategic Time 

In a room full of founders, time will always be in short supply, so as the session ended, Martyn reflected on the importance of stepping back from day-to-day operations to work ON, not IN, the business. In the rush to grow and survive, it’s easy to get lost in the business and forget to work on the business.  

But taking time to ask better questions – about category, brand, customer experience, and scalability – is key to building something that lasts. Not least so you are able to pivot the business to respond to changing customer need and market sentiment.  

Final Thoughts

Martyn gave a masterclass in scaling smarter. From category creation to customer trust, brand positioning to strategic resilience, the workshop offered valuable takeaways for any founder serious about building a business that not only survives – but thrives. 

If more workshops like these, or 1-2-1 sessions with Martyn might benefit your business, visit www.alltogether.company to find out more and sign up to join the UK’s most accessible network for founders and CEOs.