Naomi Simson’s Hard-Won Lessons for Founders and Directors on Scaling and Governance
As a founder who built RedBalloon from scratch, an investor on Shark Tank Australia, and a director serving on several boards, I've seen the lifecycle of business growth from every angle. I recently sat down with the Australian Institute of Company Directors (AICD) on their "Boardroom Confidential" podcast to share some of the most critical lessons I’ve learned on scaling, leadership, and how boards can truly govern in a world of constant disruption.
Here is an insider look at the mindset needed to succeed in and out of the boardroom.
1. The RedBalloon Origin Story: Flipping the Model
Many people ask about the genesis of RedBalloon. My corporate career focused on marketing, but I quickly realised my clients didn't just want marketing plans—they wanted customers. And marketing is expensive.
My lightbulb moment was a fundamentally disruptive one: instead of a massive upfront retainer, what if we flipped the model? What if we created a performance-based system where small businesses only paid me "when they got a customer?"
This shift de-risked marketing for thousands of experience providers and became the engine of RedBalloon's massive growth. It also tied directly into my core purpose: encouraging people to spend time on experiences, which remains our most precious thing. A clear purpose is a powerful asset—it engages employees, aligns stakeholders, and motivates customers.
2. Advice for Scaling: Systems and Self-Assurance
The transition from founder to director is one of the most challenging in business. The skills that get you from A to B aren't the same ones needed to get from B to C.
For Founders Scaling Up:
- You Must Know Your Governance: It’s easy to start a business, but scaling is where the real challenge lies. Many small business owners are directors without realising it, and they simply don't know the governance rules or risks. I strongly encourage people to undertake formal training, like the AICD Director’s Course, because "you don't know what you don't know."
- Systems Over People: The mistake many growing companies make is solving every new problem by hiring more people—that's throwing people at the problem. Sustainable growth requires setting up systems and processes that allow you to grow efficiently. Your focus as a leader must be on identifying where to invest capital and resources to get the highest leverage.
- Know When to Get Out of the Way: It’s a moment of maturity for a founder when they realise the business needs a different set of professional skills than their own—even if that means stepping back from the CEO role to allow the enterprise to grow beyond the limitations of one individual.
3. The Modern Board’s Focus: Customer & Culture
As a non-executive director, my priority often goes to the qualitative side of the business—the customer experience and the culture.
How Directors Should Champion the Customer:
Directors don't get a literal seat at the customer's table, so we must be intensely curious. I'm always asking management to drill down and describe: "What does the customer touchpoint look like?" It’s about more than just data. It’s about understanding the journey, identifying any "friction," and recognising the need for both transactional efficiency (something AI is great at) and emotional connection.
Reputation is Not a Given—It’s an Outcome:
Risk management is no longer just about financial stability; it’s largely about reputation and cyber risk. Australian companies who have struggled to recover from a major setback are often the ones who haven't been transparent. The lesson is simple but hard: "The brands that haven’t recovered are the ones who haven’t been transparent, who’ve tried to hide something." Authenticity, realism, and transparency are essential for building trust with all stakeholders.
The Purpose-Driven Workplace:
Culture is defined by purpose, and leaders need to connect that purpose to the "toil" of their employees. I believe people want to do great work, and they need to see the results. When assessing internal engagement, I look for answers to key questions:
- Do I have something worthwhile to do?
- Do I clearly know what that is?
- Does anybody notice what I’m doing?
- Do I go home feeling like a winner?
4. Navigating Disruption: AI and the Future
The speed of change is accelerating, largely driven by AI. I see AI as a phenomenal tool for efficiency, especially in streamlining transactional tasks—like getting a better response time than waiting for a call centre.
However, the rise of AI presents a real worry for me: Will it leave the human emotional element behind? As directors, we must be circumspect and ensure we don't over-rely on algorithmic answers.
Another major challenge for Australia's smaller businesses is the difficulty in securing capital. The current ecosystem struggles to fund pre-revenue businesses, which is of great concern because the small business sector is the backbone of this country. Without them, our economy is shaky. We need policy and an investment mindset that supports the ambitions of smaller operators.
My Personal Leadership Mantra
As Australia’s most followed business leader on LinkedIn, my content strategy isn't about chasing likes or spending all my time on the platform. It comes back to my sense of purpose: how can I get my greatest return on time?
I use the platform to share what I've learned, what concerns me, and what excites me. My advice to anyone building their professional profile is to be really clear on who you're talking to and why. If you're only sharing to show off, don't bother.
The beauty of business is the people you get to meet and the shared sense of purpose you create. Let's champion strong, values-led leadership that keeps the human element at its heart.
To hear the full discussion, listen to the "Boardroom Confidential" podcast by the Australian Institute of Company Directors (AICD).
Frequently Asked Questions (FAQs) on Beyond the Tank
What is the biggest lesson for entrepreneurs after securing an investment?
The biggest lesson is that the pitch is just the beginning; the real work starts the moment you walk out of the room. Securing an investment is not the finish line. It's the starting gun for a period of intense execution, accountability, and the relentless pursuit of the goals you promised. The glamour of the pitch quickly gives way to the grit of building a sustainable business.
What do investors like the Sharks look for in a founder after the deal is done?
After the deal, investors look for resilience, coachability, and unwavering execution. They want founders who are transparent about challenges, open to feedback and mentorship, and who demonstrate a relentless focus on the key drivers of the business. Great ideas are common, but a founder who can navigate setbacks and consistently execute is rare and invaluable.
Is a "yes" from an investor a guarantee of success?
Absolutely not. A "yes" from an investor is a vote of confidence and an injection of capital, but it does not guarantee success. The success of the business still rests squarely on the founder's ability to lead their team, manage resources effectively, and adapt to market changes. The investment is a tool, not a magic wand.
How does the relationship between a founder and investor evolve "beyond the tank"?
The relationship evolves from a pitch into a true partnership. It becomes a two-way street of communication, strategic planning, and problem-solving. A good investor acts as a mentor, a sounding board, and a connector, providing value far beyond their capital. The founder's role is to leverage that expertise while driving the day-to-day operations of the business.
What's the difference between a good pitch and a good business?
A good pitch is a compelling story that showcases a massive opportunity and a credible plan. A good business, however, is the proven ability to execute that plan profitably and sustainably. Many great pitches fall apart when faced with the realities of the market, while some less-polished pitches are backed by resilient businesses that thrive "beyond the tank" through sheer determination and operational excellence.
