Vercel created a separate business unit for its AI tool, V0, because it targets a different audience (PMs, designers) and needed to operate with extreme speed, unburdened by the decision-making processes of the larger 700-person parent company.

Firing decisions should be a function of both incompetence and business constraint. Not all underperformers are equal priorities. Some are like a "trash can on fire in the driveway"—a problem, but not the company's main bottleneck. Focus firing efforts on roles that are the direct constraint to growth.

In a multi-product company, horizontal teams naturally prioritize mature, high-impact businesses. Structuring teams vertically with P&L ownership for each product, even nascent ones, ensures dedicated focus and accountability, preventing smaller initiatives from being starved of resources.

Before a major business pivot, first identify what can be let go or scaled back. This creates the necessary space and resources for the new direction, preventing overwhelm and ensuring the pivot is an extension of identity, not just another added task on your plate.

Approaching a business unit head to acquire their division is like "inviting the turkey to Christmas." They will naturally be defensive about their role and business. The correct strategy for a proactive approach is to engage their superiors, who have a broader strategic perspective on whether the unit is core to the parent company.

Deciding which products or services to cut can be an emotional process for founders. Amy Porterfield advises removing the "drama" by relying on data. By tracking metrics for each offer, she could make objective decisions to retire those that didn't make business sense, simplifying her path to growth.

When a business is struggling with multiple revenue streams, the best strategy is to simplify. By cutting underperforming or noisy channels, you can amplify your focus on the one or two profitable areas. This distillation creates the clarity needed to stabilize and eventually rebuild the business.

Eliminating a popular and profitable product line can be a wise long-term strategy. If a product, even a bestseller, creates brand confusion or pulls focus from your core vision, cutting it can strengthen your primary brand's identity and lead to more dedicated growth.

The strategy of eliminating the "worst 20%" applies across the business. Beyond firing unprofitable customers, analyze your product lines and even your team. Discontinuing low-margin, high-hassle products or removing toxic employees can free up immense resources and improve overall business health just as effectively.