Ask most people what made cars affordable, and they’ll probably point to Henry Ford and his revolutionary assembly line. Ford’s genius lay in his application of the division of labor—a concept popularized by Adam Smith in The Wealth of Nations. The idea is simple: break a task into distinct steps and assign each worker a specific function. The car moves down the line, each person doing their bit until the finished product rolls off the end.
But here’s the twist: while the division of labor works wonders for large-scale manufacturing, it doesn’t always translate well to small business tasks or startup operations. In fact, sticking rigidly to this method can sometimes backfire—especially when mistakes are discovered late in the process.
Let’s look at a familiar task: mailing 100 letters to customers. Most people instinctively turn to batch processing. They fold all 100 letters, stuff them into envelopes, then affix labels and stamps. Logical, right?
Now imagine that after folding all 100 letters, you realize the fold is slightly off, making them not fit properly into the envelopes. Now you’re stuck with redoing every single one—losing precious time and potentially delaying delivery. That’s a costly error, especially for a startup running on tight margins.
What Toyota Did Differently
Toyota changed the game by challenging this “bigger is better” mentality. With its lean manufacturing philosophy, Toyota embraced small-batch production. Instead of mass-producing components and discovering issues later, they focused on making smaller batches. This meant defects were caught early, reducing waste, rework, and overall costs.
This approach is especially valuable for small businesses and startups. Unlike large corporations with robust quality control departments, startups don’t have the luxury of catching problems at the end of a long production cycle. They must remain nimble, agile, and responsive—qualities naturally supported by small-batch thinking.
Why Small-Batch Processing Works for Startups
There are several reasons why small-batch processing is ideal for early-stage businesses:
Faster Feedback Loops: You catch mistakes sooner, so you can fix them before they become costly.
Better Flexibility: You can pivot or tweak processes without wasting large volumes of product or time.
Improved Quality Control: Errors become visible earlier in the cycle, not after mass production.
Reduced Stress: You avoid the emotional toll of redoing large volumes of work.
Consider how this applies to your own operations. If you’re developing a new product or service, would it be wiser to test it on 10 customers first rather than 100? If you’re creating marketing content, would it be better to test one landing page before rolling out a dozen?
Applying the Concept to Your Business
Startups and small businesses are uniquely positioned to benefit from small-batch methodologies. Here are a few areas where this approach can be game-changing:
Email Campaigns: Test a message on a small segment before blasting it to your entire list.
Product Prototypes: Build one version, gather feedback, and iterate before scaling.
Hiring: Bring on one freelancer or part-time employee to start, rather than hiring a full-time team member.
Service Delivery: Try your process with one client and refine it based on their experience.
Adopting small-batch processes encourages a culture of experimentation and learning. It’s not about doing less—it’s about doing smarter.
From Assembly Lines to Agile Startups
The core lesson here isn’t that Ford was wrong—but that his model was designed for a different era and a different kind of business. When resources are limited and every decision counts, efficiency isn’t about doing more faster. It’s about learning faster, fixing sooner, and scaling smarter.
Small-batch thinking is more than just a productivity hack; it’s a mindset that embraces learning, agility, and improvement. It’s what allows businesses to stay lean without being fragile, and to grow without losing control.
Final Thoughts
So before you start mass-producing any component of your business—whether it’s physical products, content, or internal processes—ask yourself: What would Toyota do?
Start small, learn fast, and grow wisely.
What areas of your business could benefit from small-batch thinking rather than a mass production mindset?
