Foundr V1.0 Coffee Table Book First 2 Chapters Preview
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The document discusses the benefits of entrepreneurship in the current business environment. Some key points: - It is an excellent time to become an entrepreneur as barriers to entry are lower than ever due to online business opportunities and global access. - Entrepreneurship and startup involvement is at an all-time high with 27 million Americans currently starting or running new businesses according to a 2015 report. - While entrepreneurship provides independence, control, and flexibility, it also requires passion, commitment and hustle to succeed. Overall the potential rewards make entrepreneurship worth pursuing for many.
Foundr V1.0 Coffee Table Book First 2 Chapters Preview
- 2. The great news is, there has never been a better time to become an entrepreneur. The online economy has made the point of entry lower than ever, while a mix of social, cultural, technological, and market forces have combined to create unprecedented access to the global business playing field. It is, therefore, little wonder that we find ourselves in an era in which entrepreneurship and involvement in startups is at an all-time high. A 2015 report released by Global Entrepreneurship Monitor suggests that a whopping 27 million working-age Americans, almost 14 percent of the working population, are currently starting or running new businesses. Introduction nathan chan CEO & Publisher Foundr Magazine For some budding entrepreneurs, making the decision to shrug off the 9-to-5 security blanket and start a business is not an easy one. For others—those among us who grew up fleecing the neighbors with our lawn-mowing services and lemonade stands— it’s the only conceivable path. Since our launch, we’ve interviewed some of the greatest entrepreneurs of our time, like Richard Branson, Arianna Huffington, Seth Godin, and Tim Ferriss, to name a few. But we haven’t just interviewed them to talk about their success—we’ve gone deep, and broken down just what it has taken to get there and all of the lessons they have learned along the way. It’s been such a ride, and we hope you’ve gotten as much out of it as we have. The result to date, compiled here in Foundr V1.0, features advice and anecdotes gathered from our interviews with 54 of the most impactful entrepreneurs on the planet. We harvested the best wisdom from our 100+ podcast episodes and close to 40+ magazine issues, and bound it all here in one entrepreneurial handbook. Collectively, these startup superstars have moved the needle for the rest of us in a major way, and influenced the way the world, and our society as a whole, operates. Whatever stage of the game you’re at, there’s tremendous wisdom to glean from this cohort of rockstar entrepreneurs. Think of it as tales from the trenches, as told by those who have hacked, hustled, and harangued their way to the top. Thanks for joining us on this journey. We hope this book helps you on yours. Like in any endeavor, there are risks associated with opportunity. But with today’s business environment making it easier than ever to take the leap, it becomes harder to ignore the potential rewards of rolling up your sleeves and getting started. Few career paths allow you to be as creative, independent, or to exert such control over your own fate. And there’s surely no other career that lets you shape your work habits to fit the lifestyle you want. That’s not to say the startup life is all beer and Skittles. In fact, if you’re drawn to entrepreneurship because you see yourself drinking piña coladas in the Bahamas six months a year, you might think twice. As the contributors to this book will attest, it takes passion, commitment, and a healthy dose of hustle to make it to the top. But each of them is living proof it can be done. And therein lies another reason it’s such an amazing time to start a business—you don’t have to do it alone. There is a sea of information out there waiting for aspiring entrepreneurs. When I started Foundr Magazine in 2013, my goal was to seek out and deliver the best of it to other people like me. To serve as a beacon, helping others navigate these vast waters.
- 3. GETTING STARTED01 Everybody needs a reason to get out of bed in the morning, but this is especially true for the unique group of rulebreakers and status quo- shakers we call entrepreneurs. It’s us. It’s you. And it’s that 8-year-old kid down the street who’s been trying to sell you a used Christmas tree since January. FINDING YOUR PASSION
- 4. As entrepreneurs, without the driving force of our passion—the one pushing us forward and compelling us to work harder and longer than we think they are capable of—greatness would rarely be achieved. Problems would never be solved, nor creative solutions hacked. Finding the thing that lights you up is, therefore, a huge piece of the entrepreneurial equation. If you’re lucky, your passion is obvious—a deep-seated desire to solve a particular problem or effect a certain change in the world. For others, finding their inner spark calls for some trial and error, and for the rest of us, it’s simply the idea of being an entrepreneur that gets the blood pumping. Steve Blank is a startup- veteran-turned-author who is now using his experience to educate budding entrepreneurs. Widely touted as one of the “Godfathers of Silicon Valley,” Blank has founded or contributed to eight startups, four of which have gone public, and now lectures at a number of high-profile business schools across the United States. Blank also helped to kickstart a little movement you might have heard of called the Lean Startup. As Blank sees it, if you’re the kind of person who has the passion to explore big ideas or to challenge the way things are done, you’re already a cut above the rest. “Founders, if you really think about what they’re doing, they’re creating something new that’s never been done before. Who else does that? It’s not accountants or clerks in a store—they execute a known set of things. The people who create great things out of nothing, out of just their vision, are sculptors, or painters, or writers, who look at a blank canvas and next thing you know, there’s Starry Night, or see a blank score sheet and next thing you know there’s Beethoven’s Ninth. Founders operate the same way. They have a vision of something that might be. Much like artists, it’s that passion to bring that vision to fruition that drives you past all those miserable times. The good news is, we kind of understand that being an artist is a calling, not a job. The same is true for entrepreneurship.” steve blank
- 5. FINDING YOUR PASSION Bilyeu further identified passion as the reason he and his co-founders have rejected buyers willing to pay life-changing sums for their company. Being clear about their collective purpose—that is, not to sell a record number of protein bars, but to wipe metabolic disease off the face of the planet—has made it easy to turn their many suitors down. “Money isn’t our primary motivator—we just really wanted to go after one of the most major problems in society, and say, ‘That’s our problem to solve, we’re going after that.’ If you’ve got something you believe in that much, you’ll stay hungry. But if you’re just after the money, and you’re thinking, ‘What is the least I can do today to get what I want?’ you will fade away.” Tom Bilyeu is co- founder and President of Quest Nutrition—aka the second-fastest growing private company in North America, as recognized by Inc. Magazine in 2014—and he shared similar sentiments. In Bilyeu’s experience, gained from building a company with a billion- dollar valuation within six years, pinpointing your passion is a matter of deciding what really matters to you. “It’s not asking what opportunity can I exploit to make money, but what do I have enough passion to learn more about than anyone else in the world, and what will I fight my ass off for, even when it gets really hard. If you can align your business to that thing, man, you will be unstoppable. Human beings are so resourceful when they tap into their passion. It’s just astonishing.” tom bilyeu
- 6. VISION Many startup founders are intimidated by the idea of defining a formal vision, but it needn’t be something you share with the entire world, or slap all over your marketing material. Rather, think of it as a way to keep your actions true and your business pointing in the right direction. Former Elance CEO Fabio Rosati had a vision to change the way the global labor market worked. It was a lofty idea, but one that, remarkably, Rosati pulled off. The online services giant, which merged with oDesk before relaunching as Upwork in 2015, totally revolutionized the freelancing economy and is now used by more than 1 million companies, hiring from a pool of more than 12 million freelancers who collectively earn more than $1 billion annually. Like most successful entrepreneurs, Rosati’s journey has had plenty of twists and turns. Elance launched and went through several major overhauls before really taking off, a factor Rosati attributes to the company not having the right vision early on. Specifically, they weren’t trying hard enough to revolutionize their space. “I kept thinking about the vision, and not being in love with it. Despite being an interesting business, enterprise software wasn’t going to change the world. This was when I realized that being in love with a vision is incredibly important, and so I convinced our investors to sell that business and we used some of the proceeds to fund a much more interesting version of Elance, which we launched in 2007.” Rosati further explained that to define a robust vision, founders should endeavor to strike a balance between purpose and innovation. fabio rosati What’s your purpose? What’s your organization’s purpose? Creating businesses today is a form of art, and the expression of that art. It starts with a vision of purpose. Successful businesses have a very crisp and clear vision that is well articulated and well understood by the people associated with that business.” People are increasingly motivated by purpose. GETTING STARTED01 Once you have honed in on your passion, it’s time to crystallize a vision. What do you want to bring to life, and for whom?
- 7. As important as it is to define that clear vision, others emphasize the need to stay nimble in what you’re trying to accomplish. Businessman, author, and Shark Tank celebrity investor Robert Herjavec explained how, in the technology sector, an evolving vision is essential if you want to keep up. robert herjavec “Every three years, I like to say, the tech space eats its own young. That’s what happened to us. We found that the pace of change was something that took a long time to get used to. I think it’s important to know where you are going, but, in tech, it can be difficult. So we have a short-term vision and a long-term goal, but we try to be focused on execution on a quarterly basis.”
- 8. “Don’t rest on your laurels. If you rest on your laurels, if you’re not the one that innovates and even cannibalizes your own business, your own comfort zone, somebody else will.” Fabio Rosati, Former CEO, Elance your challenge Being clear about these foundational attributes is also a great way to hitch people to your wagon, according to serial startup boss and Xero CEO Rod Drury. By selling people on your vision, Drury said, they can be confident they are working toward something bigger than themselves, which starts to propagate a culture of success. “You have to lead by example, and set the values of how you’re going to play. Create the charter your business will operate on, because there are so many decisions, you need to have a framework. What works really well at Xero—and why we have so many evangelists—is we have a really clear vision and we incrementally deliver to that vision. People get used to the flywheel of success as we keep having the courage to move in a direction, and executing on it. I’m always sharing and reinforcing where we’re getting to, and just showing them that someone really owns the success of the business.” Over the course of his accolade-rich career, AOL Co-founder Steve Case has also had a grand vision or two. Getting people’s early buy- in on a little idea called the internet took more than a decade of perseverance. However, it was a failed merger between AOL and Time Warner that taught Case the importance of execution when it comes to delivering on a vision. “The lesson I learned from that (merger) was that vision without execution is hallucination. The idea of the merger made sense to both AOL and Time Warner, but the execution was flawed. Ultimately, we didn’t have the right people focused on the right priorities, or working together in the right kind of way. As a result, what could have been a transformative merger ended up struggling, and ultimately had to be unwound. The key lesson is, it really does come down to execution, and execution is about people.” However, Herjavec went on to say that when it comes to defining your big picture vision, founders shouldn’t be afraid to go all out. When explaining the growth of his principal business, IT security firm the Herjavec Group, he told Foundr he wished he had set a bolder vision in the early days. “We’re now a global company, we compete in the U.S., the U.K. I never imagined that we could do that. I grew up in Canada and all my businesses were in Canada, so our vision was to be the biggest company in Canada. Now, my vision is to be the biggest and the best player in my space, in the world, and I think, why can’t I do that? It’s just a level of confidence. I wish I had thought on a larger scale; it would have given me more growth, more incentive, and a greater vision to start with.” own vision foundr tips
- 9. GOAL SETTING As an entrepreneur, you’re probably the type of person who tries to do seven things at once. While a can-do attitude is certainly a strength, it can become a point of weakness if your energies aren’t focused on the right areas. “A lot of people have vague goals. It helps to know what you really want and be willing to sacrifice for it, because you’re willing to give something up in the short term to achieve something in the long term. It’s a universal struggle. But what I do is I try to re-evaluate and regroup, and say: What am I working toward, what is this ultimately about, what do I really hope to achieve, and am I doing the right things to get there? If I disconnect somewhere, I need to address that.” GETTING STARTED01 It’s par for the course that you will wear many different hats, especially in the early days. But a consequence of spreading yourself too thin, or being too focused on the day-to-day minutiae, is that you can easily veer off course. Setting markers for yourself in the form of goals or milestones is an excellent way to stay on track. After all, if you don’t know where the goal posts are, how can you aim for them? Author and entrepreneur Chris Guillebeau set himself a goal and it became the catalyst for a successful international career. Guillebeau tasked himself with picking up a passport stamp for every country in the world by the time he turned 35. It was an epic adventure and one that led to the launch of his wildly popular blog The Art of Non-Conformity, and the New York Times-bestseller The $100 Startup. Always intentional with his goal setting, Guillebeau takes time at the end of each year to do an annual review. He looks at what went well, what he was happy about, as well as his failures and struggles. Guillebeau then comes up with outcomes, and directs his energies towards them. chris guillebeau
- 10. When it comes to goal setting, Michalewicz believes few people take the time to do for themselves what is done in businesses every day. Internationally renowned entrepreneurship expert Matthew Michalewicz concurred, believing the value lies in establishing goals for both yourself and your business. Having started several companies from scratch that later sold for tens of millions of dollars, Michalewicz has done the homework. He has also used his expertise to develop The Goal Pyramid, a handy tool that helps you visually unpack your goals, before breaking them down into milestones. “Few people ever stop to think, ‘How did I get where I am? Why am I doing what I’m doing?’ Businesses regularly take stock, but most people fail to do the same. I advocate that people take time out. Stop. Think strategically about where you are heading and ask yourself, is that where I want to be going?”
- 11. THE LEAN STARTUP steve blank The Lean Startup has been one of the hottest topics in the entrepreneurial world over the past decade. In a nutshell, lean methodology is a way to reduce startup failure rates and boost innovation, by speeding up the testing of ideas and the capture of user feedback. Steve Blank’s 2003 book, The Four Steps to the Epiphany, is largely credited with launching the lean movement. Prior to its creation, Blank explained, entrepreneurs had been setting themselves up for failure by trying to execute fully formed business plans before their ideas had been proven. “In the old days you’d write a business plan—a document describing who you were, the opportunity, the size of the market, and you’d do a five-year forecast and if your VCs loved you they funded you, and you simply executed against the plan. That is, you built the hardware or software, did alpha and beta testing and first customer shipment. Then you’d stand back and assume that the only thing you might have done wrong was whether the office was big enough to hold all the bags of money that were supposed to come in. And it almost never worked like that.” GETTING STARTED01
- 12. “You need to have lean, but you also need to have a good strategic orientation. The customer doesn’t always know what they want. So have absolute clarity about who your customer is. Have clarity on what your strategy is. Have a view about how you are going to make money. You do need to have an aspect of unrealistic passion to get there. But you need to factor in a view of what success looks like at any given point.” Martin Hosking, renowned CEO of online art giant Redbubble, is another Lean Startup advocate. He told Foundr that one of lean’s main advantages is that it allows you to keep a laser focus on the customers. However, Hosking encouraged founders to ensure this single-minded customer approach is supported by a robust strategy. Blank, together with a small group of industry thought leaders, devised a better way. What the Lean Startup aimed to address, Blank said, was the fundamentally flawed practice of trying to make startups emulate the behaviors of established, large-scale businesses. “Startups, at least most of them, don’t execute existing models. We typically don’t know who our customers are, what our features are. All we really have on day one is a series of untested hypotheses. The word hypotheses means we’re just guessing about all this stuff in a startup! So instead of executing a business model—here’s the big idea—you’re searching for one. And searching for one means, instead of just building stuff end to end, with every possible feature, you’re in fact thinking, why don’t I start talking to people outside my building, to actually turn those faith-based assumptions into facts, as rapidly as possible.” Blank goes on to define lean methodology as a series of steps, beginning with summarizing your hypotheses using Alexander Osterwalder’s Business Model Canvas. The second stage, which Blank invented, is called Customer Development—a formal way of getting out and testing your hypotheses by talking to people. The third involves developing early prototypes. “As you’re going out talking to people, you’re showing them a Minimum Viable Product, which is a fancy term for prototype. It might simply be a PowerPoint slide or a wireframe, or maybe some software, but it’s whatever gets you the most learning at that time. If you use this process you save an enormous amount of time and money, and you also save needing to fire a lot of people. Because, most of the time, you’re going to discover that most of your hypotheses, your guesses about your business, were wrong. So you end up doing what’s called a pivot. And a pivot says, let’s make a substantial change to our hypotheses.” martin hosking
- 13. Business Model Canvas: Develop your hypotheses “The first thing you’re trying to understand as an entrepreneur is solving someone’s problem or fulfilling someone’s need.” Exploring how your customers are solving the problem already and why and how they would use your solution is crucial to the process. This is where you put your hypotheses together. “This first step is about articulating and summarizing all your guesses about: Who’s my customer? What are my features? Who’s my distribution channel? How am I going to get, keep and grow customers? Pricing? Costs? Resources? Activities? The very first thing is to convince me that anybody else other than you cares about the problem and solution.” FOUNDR TIPS STEVE BLANK’S TOP TWO MISTAKES TO AVOID 1. BELIEVING YOU ARE A VISIONARY Almost every entrepreneur believes that they’re visionaries. Data says about 98% of them are hallucinating. The distinction is that those who are actually true visionaries have got out of the building and tested their vision way before they spent a ton of money on it. 2. BELIEVING THE TECHNOLOGY IS THE COMPANY The other mistake made by technologist entrepreneurs is believing that the technology is the entire company. Even if you have the world’s greatest invention, your technology is going to die unless you figure out who the customers are or what the distribution channel is, what pricing is, how much it costs to acquire a customer. You need to figure out the rest of the commercialization components to the technology. 01 02 03 The Lean Startup: Steve Blank’s Five-Minute Crash Course Okay. We’ve heard about it. Everyone talks about it. But what is the Lean Startup? Foundr asked one of its pioneers Steve Blank, and he gave us a concise rundown. Minimum Viable Product: Show your prototypes The Lean Startup playbook teaches a rapid development of a Minimum Viable Product, designed with the smallest group of features to please a set of customers. Once shipped, the startup should continually experiment by tweaking its offering, noting how the market responds and altering the product accordingly. But the idea isn’t that a Minimum Viable Product is a smaller version of the product. “It’s whatever gets you the most learning at that time.” Customer Development: Test your hypotheses Talk to potential customers, partners, regulators or anybody else involved in your potential business. As a rule of thumb, Blank recommends talking to a minimum of 100 people to validate your Business Model Canvas. “While you might spend two or three months doing this, in 90 days you’ve probably saved yourself a year-and-a-half worth of burn rates and frustration by actually learning all of this stuff, because people have taught you rather than you guessing!” Put simply, it’s a way to adapt business for the digital age to reduce startup failure rates and boost innovation. It speeds up the pace of testing new ideas, making use of the inexpensive and agile technologies of the Internet and open-source software. It has three pieces:
- 14. Shaun Neff, founder of the eponymous snowboarding and streetwear brand, is one of the most down- to-earth founders you will come across. Neff is known for his laidback approach, so it might surprise you to learn that he is also a master networker. He encouraged founders to show up at any event where there’s a chance of making new connections, but also to accept that you won’t know when, or if, any payoff will come. shaun neff NETWORKING Forging meaningful connections with a diverse range of people can have a profound effect on any entrepreneur’s business. An important thing to remember, however, is the fact that networking is a two-way street, and should always be entered into with the right intentions. shaun neff “I’m a networking freak—that’s kinda my game plan. But it’s all about being real. A lot of businesses are pitched in a really sales-driven way, or the intent is not delivered as naturally as, ‘Hey let’s do something rad together and build on it.’ From when I first started convincing pro athletes to wear my dollar headbands, I’ve just tried to be real and authentic and not give the impression that it’s just about using their name on my brand to make money. I charter my evenings, my nights, around hunting down the right guys and just vibing out with them on a normal level. I always say if there is synergy, cool, and if not, here’s my info and I’m sure our paths will connect later.” GETTING STARTED01
- 15. study ase chapter 01 Founder Joel Gascoigne Job CEO and Co-founder of Buffer Success Story Buffer went from an idea to a product with paying customers in just seven weeks, and went on to hit 1 million users. Joel Gascoigne keeps things Lean A core concept of the Lean Startup Methodology is the idea of the Minimum Viable Product, or MVP. This is the bare bones of your product idea, basically a prototype or a beta. But it can be even more bare bones than you might expect. The point of creating an MVP is that, instead of wasting resources building out a product that no one wants, you can instead incorporate your customer into your development process by going to market with your MVP first. By doing so, you can validate your idea and see if there’s even a market for what you’re creating in the first place. At this stage, you’re really only looking for market validation, so the substance of what you’re offering can be very light. Just take a look at how Joel Gascoigne went from an idea to paying customers in just seven weeks with his own startup Buffer. A huge advocate for going lean, Gascoigne started with the idea to create an easy-to- use app that allowed you to schedule posts on Twitter without having to manually set a time for each individual tweet. So how did he apply the Lean Startup Methodology to his idea? As it turns out, the MVP for what would eventually Featured in Issue 23 - Consistently Happy: Behind the Scenes at Buffer
- 16. be known as Buffer wasn’t even a product at all. Before he even began coding, all Gascoigne did was create a simple landing page that advertised the feature of his tool, a pricing plan page, and a signup link. After that, he just tweeted out a link to his landing page and waited to see if anyone would respond. That’s right—before he even began to build a working prototype of his product, Gascoigne started marketing it. In accordance with the Lean Startup Methodology, the goal was simple: to see if anyone would be interested. After receiving several responses, he knew that he had successfully validated his idea and had a viable product on his hands. From there, it was just a matter of building the first working version of Buffer that was “good enough” to go to market. No bells or whistles, just a plain app that performed as advertised. But the journey didn’t end there. A core part of lean is continuous development and learning. Just because his initial app was proving to be successful did not mean that Buffer was complete, far from it. While Gascoigne had proven that he had a solid idea, it was time to let the idea evolve as organically as possible, something that’s only achievable by listening to your users. After gathering feedback from their early adopters, the team at Buffer realized there was a variety of features that their customers wanted. Not long after, people could use Buffer to automatically schedule their posts across multiple social media platforms, not just Twitter. After that first iteration, they listened to their customers again and began working on the next version of their product. This time, a simple plugin for web browsers made it even easier for customers to schedule their posts. By focusing on their customer first and foremost, Buffer wasted no time or resources on developing features or even an entire product that nobody wanted. Within seven weeks, Buffer went from a basic idea to a product with paying customers. It was plain and simple, but that’s all it needed to be in order to get started. casestudy
- 17. When it comes to deciding which of your ideas to focus on, business magnate Richard Branson told Foundr there’s no clear formula. Instead, he encouraged founders to balance facts with the all-important gut feeling: I definitely go on gut instinct, but it has always had the backup of research and information. Always follow your instincts.Never be frightened of taking risks, and Don’t be afraid to take that leap into the unknown.” richard branson
- 18. “You’ve got to come up with something distinctive. Instead of it being a ‘me too’ product, make it an ‘I have to have’ product. Then, make sure it’s quality and that people have a strong connection to it.” Daymond John is another career entrepreneur and investor who sees a constant stream of product ideas through his role on Shark Tank. When it comes to nailing your USP, John believes it’s about creating something that jumps out at people, so they will clamor to get their hands on it—much like they did with his game-changing streetwear line FUBU in the 1990s. DAYMOND JOHN
- 19. Even someone well established in traditional funding circles, such as celebrity investor Barbara Corcoran, can be dazzled by the possibilities of crowdfunding. Corcoran, who founded the Corcoran Group with a $1,000 loan and would eventually sell it for $66 million, said online platforms like Kickstarter open up a world of opportunities to budding entrepreneurs. barbara barbara corcoran “The access to capital isn’t at your local bank - it’s online. I would say that at least 40 percent of all the entrepreneurs we met on SharkTank had already raised a lot of money online through crowdfunding. You can teach yourself how. Analyze successful campaigns. Figure out what works.”
- 20. ariann According to digital media mogul Arianna Huffington, switching off is another high- value well-being activity that’s easy to incorporate into your daily routine. In today’s hyper-connected world, Huffington said disconnecting from the devices that have enslaved us is becoming more and more essential. “The first stages of the internet were about data and more data. But now we have plenty of data—indeed, we’re drowning in it—and all the distraction we could ever hope for. Technology has been very good at giving us what we want, but not always what we need. Wherever we look around the world, we see smart leaders, in politics, in business, in media, making terrible decisions. What they’re lacking is not IQ, but wisdom. Which is no surprise; it has never been harder to tap into our inner wisdom, because in order to do so, we have to disconnect from all our omnipresent devices—our gadgets, our screens, our social media—and reconnect with ourselves.” ariannahuffington
- 21. study ase Robin Chase Keeps the Customer in the Driver’s Seat A classic early entrepreneur’s mistake is to surround yourself with co-founders and friends, all convinced that you’ve created the perfect product, only to find out you have no idea what customers really want. The truth is, the only person who can tell you for sure whether or not they’d be willing to put down money for what you’re offering is your customer. The only way you’re going to build a great product is by communicating directly with your user. Anything else and you’re just assuming, and you know what they say about assuming. In the fall of 1999, Robin Chase had a lightbulb moment when her co-founder told her about an interesting story of some people sharing a car in Berlin. Taken with the idea, within six months they had launched Zipcar. Despite the fact that there was only one car in operation when they started, a green Volkswagen beetle named “Betsy,” Zipcar had proven itself almost immediately. The website was easy to use and the process simple enough for anyone to understand. The reason it went so smoothly is that Chase was already intimately familiar with what her customers wanted out of the experience—she was her own customer. “This is what I personally want to have. That I had three children, and a husband, and one car and I lived in a city. And I wanted a car sometimes, but I definitely did not want to own another car.” Founder Robin Chase Job Co-founder of Zipcar Success Story Zipcar created a revolutionary business model in the early days of the sharing economy and challenged the concept of car ownership, rising to become a world leader in transportation. Featured in Issue 46 chapter 02
- 22. It’s a huge success. But let’s contrast this with Chase’s first startup venture after Zipcar, a long- distance ride-sharing business that ran into problems as soon as it launched.Today, Zipcar is one of the largest car- sharing services in the world, with over a million users and 13,000 cars found in almost every major city. “At that time I thought, ‘Oh I’m really clever, I know a lot about transportation, I know I’m going to make this fancy website.’ I spent a lot of money building this website and it was way, way, way too clever, so by the time it hit consumers, I had overbuilt it. So we spent the first three months un-building it.” Unlike the immediate success she experienced with Zipcar, Chase instead found that she had overestimated her users’ ability to navigate her new website. Instead of reaching out to her customers and asking for their feedback, she made the classic mistake of assuming that she knew what her customer wanted. “I would have thought that, at a minimum, to share a ride you would have to put in the time of day you’re leaving, the time of day you’re going to get there, origin, and destination, and how many seats you wanted to rent, and the price. That was too much. People were not interested in putting all of those details in.” The process was too complex, not intuitive enough, and instead all it did was serve to frustrate her initial users. The lesson here is that no matter how much you know, at the end of the day, you’re not an expert when it comes to your product. Your customer is the expert. casestudy