Foundr Magazine Podcast with Nathan Chan (general)

Great service is hard to come by. This eternal problem is what Jim Penman set out to solve when he started his part-time lawn-mowing business—and even though his business has since grown into a multimillion-dollar enterprise known as Jim’s Group, it’s still the core focus.

Jim’s Group was an unintentional empire, started by an aspiring academic back in the 1980s. Today, Penman’s company has almost 4,000 franchisees that provide over 50 services around the world. As a result, Jim’s Group has become a household name in Australia for all things home services.

Here’s how Penman grew his business from a humble mowing service to the largest franchise in Australia.

The Unintentional Founding of Jim’s Group

In the 1970s, Jim Penman was pursuing his Ph.D. in history at Latrobe University in hopes of joining academia. His plans changed, however, when he graduated in 1982 and realized he had little to no chance of working in academia: “My ideas were far too wild.”

At the time, Penman also happened to be operating a part-time lawnmowing business, as he made his way through the grueling grad school years. This turned into a full-time gig upon graduation. “It was something to do until my real business came along.”

Or so he thought. While he waited for his real life to kick in, Penman was excelling at his temporary one. He had a passion for making customers happy, which made it easy for him to attract and keep regular clients. “It was the biggest thing I had going for me,” he says. He also found success building and selling ramps (for transporting mowing equipment onto raised beds or platforms) to his customers.

As his business grew, he tried employing subcontractors, but he couldn’t find people who matched his quality of service. Then in 1986, necessity forced him to evolve.

Major competitor V.I.P. Home Services came to town. This was a turning point for Penman. “I simply franchised in self-defense,” he says. “Otherwise, they’d swallow me whole.”

For those unfamiliar, franchising allows other entities to use your company’s name, trademark, business strategies, and so on in order to share essentially the same products and/or services offered by the franchisor. Franchisees typically pay a licensing fee and a percentage of sales revenue to their franchisors. It’s an effective way to quickly expand a business without massive financial investment.

Penman started with about a dozen franchisees, most of whom were previous customers. But even as Penman expanded his business, his focus still remained on the short term. He truly had no idea his business would grow to where it is today.

“When people asked me how I thought might go, I said, ‘If it's really successful, one day I could have as many as 100 franchisees,’” Penman says, laughing. “That was my reach goal. Now, I have just under 4,000.”

Franchising Jim’s Group to 4,000 Strong

When Penman was a contractor, he had one simple idea: He wanted to make customers into raving fans. “I wanted customers to be so delighted that they’d recommend me and use me forever.”

That was the core concept of Penman’s business, and when he franchised, he had the same concept for his franchisees.

With that in mind, he developed a contract that would catch the eye of any prospective franchisee. His goal was to make it so enticing that potential owners would be “mad not to join the system.” Penman even got ahold of a competitor’s contract to better understand how he could make his more favorable.

For example, he promised his franchisees that he wouldn’t take regular clients from his franchisees without their consent (unless a customer complained). He promised territory rights—meaning he couldn’t give any client in their area to anyone else, but they could take work wherever they wanted. Penman also promised an automatic right to renew.

“This was all really strange stuff,” Penman says. “One reason it took nine months to get the contract done was because the lawyers kept arguing with me.”

They thought he was being way too nice and that the contract was unreasonable and extreme. They encouraged him to “soften it down,” but over time, he actually provided his franchisees more rights. These included the right to move to another regional franchisor, to walk away from the franchise for a small exit fee, and to vote out their franchisor.

At every stage, Penman put his franchisees first. In his opinion, the secret to looking after your customers is having a great staff. The same thing applies to great franchisees—you make them the actual first priority.

“There’s nothing particularly clever about what has done,” he says. “It’s more how we do it that matters. The way we treat our franchisees, how we maintain quality, how we make sure they're looked after, that they're happy…that's the innovative part of the system.”

As you can imagine, Penman’s franchisee selection process is quite rigorous. With such a favorable franchising package, many people apply, but few are chosen.

“We are very selective,” he said. “Unless I’m convinced they’ll succeed, I don’t accept them.”

When interviewing franchisees, Penman looks for a handful of key attributes: Good character, a concern for customers, reliability, and basic decency. He takes each interviewee on test drives to watch them perform their service. He also never accepts anyone who is not putting up their investment money themselves.

“To run a successful cleaning or mowing, you don't have to be a genius,” Penman said. “You have to be somebody with good character.”

Expanding the Jim’s Group Services

In the first few years of his business, Penman didn’t just expand through franchising. He also began adding different service divisions.

With a successful mowing system in place, Penman considered how he might apply his approach to other services, such as cleaning. He created a separate cleaning brand called SunLite and sold a couple of franchises. That avenue failed completely.

Penman liked the idea of expanding under the Jim’s Group name, but he didn’t think it’d be successful, because the brand image was so vastly different. Who’d hire a cleaning service with a brand image of gardening and mowing?

Well, a lot of people did. Penman added a cleaning division to Jim’s Group and found that the familiar brand name actually helped grow his new business.

Penman continued expanding under the Jim’s Group brand to include services such as dog washing, computer services, bookkeeping, and roof repair. Today’s Jim’s Group has 52 divisions, and the company cross-sells through a client newsletter with about 500,000 recipients.

“The brand just works far beyond what you think it would,” Penman says.

When asked about how he manages such a wide variety of services, he says, “There’s no real difference between mowing and cleaning and dog washing. The basic issue is the same: Follow up on a lead, respond quickly, turn up on time, provide a reasonable quote, and satisfy the customer.”

To Penman, it doesn’t matter what the service is. His goal is getting everyone to do provide consistent, high-quality service.

Still, Penman is always making tweaks to Jim’s Group to constantly improve that service. For example, Jim’s initially offered a flat rate fee system to its franchisees. Over time, Penman learned that franchisees weren’t always following up on leads. In fact, a survey found that 25 percent of client leads never received a follow up. Penman changed the fee system to reflect a lower base fee and a separate charge per lead. After that, the number of leads not being followed up on dropped to just 3 percent.

Penman also made recent changes to the Jim’s Group complaint system. In the pre-franchise days, Penman would see approximately 100 complaints for every 100 leads. After franchising, that number dropped to about five complaints.

However, Penman wasn’t satisfied with 5 percent. To fix the issue, he went to his regional franchisors, who manually receive these complaints. The team decided that every time a complaint comes in, the franchisor would alert Penman and the respective franchisee. Then, the franchisor would call the franchisee to better understand what happened and how to solve it.

Today, Jim’s Group has an automated complaint system. If a franchisee gets six complaints within six months, they receive a warning letter. Another six, and the franchisee has to attend retraining. They’re now down to just 1 percent, and working to cut that at least in half.

In a world full of new ideas, how does Penman stay focused on Jim’s Group? “You might think we do 50 different things, but as a national franchisor, I do one thing: I provide a service. Jim’s Group is a very focused and limited company.”

With almost 4,000 franchisees, it’s even easier to provide global services. Today, the company also benefits from a much more sophisticated software and a wide variety of resources for franchisees.

Beyond Jim’s Group

While Penman continues to expand Jim’s Group, he never forgot his original passion: research. The only difference now is that he can afford to really pursue it.

Until his academic career stalled, Penman never considered becoming wealthy. “I've never been that interested in money,” he laughed. “I'm notoriously stingy. I go around the house and office turning lights off.”

But now he’s able to use the success of his company as a vehicle for funding, so he can dedicate more time and resources into continuing his research on the epigenetics of social behavior. He believes this could help in the treatment of mental illness and addictive disorders.

Valuable Advice to Franchisors

In Penman’s opinion, many people have a misleading idea of business. They think they must have a breakthrough or a big idea to be successful.

“It's not the brilliant ideas,” he said. “It's thousands of little ideas. Every day I say, ‘How can I do this better?’”

Penman encourages anyone who wants to grow to focus on yourself before considering franchising. “If you don't do it well, there’s no point in franchising, because you don't have anything to teach anyone else.”

He encourages entrepreneurs to build a brilliant business, then, master a working model that you constantly change to make better.

Penman also believes in a people-first mindset, instead of money first. He encourages people to ask themselves: What's the long-term interest of the people I'm dealing with? How can I make my customers and franchisees into raving fans?

“Every day, I’m asking myself the same question,” Penman says.

Finally, he recommends keeping in touch with the grassroots. Every single franchisee has Penman’s personal number and email. “I get multiple contacts a day,” he says. “I’m always listening to what's going on. I also read through most complaints.”

After all, it's the thousands of little things that count.


Key Takeaways

  • Penman’s journey from being an aspiring academic to unintentionally starting Jim’s Group
  • Why the arrival of a competitor pushed Penman to franchise his brand
  • The importance of running a customer-centric business
  • Why lawyers were not fans of Jim’s Group’s franchisee contract
  • The reason Jim’s Group started to expand to different service divisions
  • How Penman’s success as an entrepreneur helped him circle back to his original passion
  • Penman’s most valuable advice to aspiring franchisors

 

Direct download: FP255_Jim_Penman.mp3
Category:general -- posted at: 2:58am AEST

Success doesn’t happen overnight.

This is something Foundr CEO Nathan Chan knows all too well. Before he started his business, Nathan was in a common predicament: he hated his job and he had no idea what career path to take. It took many steps to plant the seed that eventually became Foundr.

Even then, it wasn’t an easy path forward. He stayed in his job long after starting Foundr, and at one point, Nathan even launched a webinar from his parents’ basement. There was no magic involved—only hard work, strategic decisions, and many lessons learned.

In this video interview, Dave Hobson, our Head of Growth and Marketing and one of the first to join the Foundr team, has a raw conversation with Nathan about his journey to building a global brand. Nathan opens up about what it took to get Foundr off the ground, shares the key takeaways he picked up along the way, and reveals the nitty gritty details around how he turned a webinar presentation he hacked together into a multimillion-dollar product.

This episode is chock-full of sage advice, life lessons, and even an embarrassing story or two from our CEO’s humble beginnings that you’ll definitely want to hear.

Key Takeaways

  • How Nathan went from working at an IT job he hated to launching a digital magazine
  • The steps Nathan followed to turn a webinar presentation to a multimillion-dollar digital product
  • How falling into the trap of seeking perfection will prevent you from reaching your goals
  • The difference between “painkiller” and “vitamin” products
  • Why it’s so critical to build an audience and test your ideas first
  • How to use concepts like “a thousand true fans” and the “Oprah strategy” to create a successful business
Direct download: FP254_Nathan_Chan.mp3
Category:general -- posted at: 3:13am AEST

“I think about how little we knew, but how—I believe—how courageous we were,” says Christene Barberich, reflecting on the early days of Refinery29.

Before she and co-founder Piera Gelardi were the women at the helm of one of the fastest-growing digital media companies in the world, they were new entrepreneurs working tirelessly on a vision (first sketched on a napkin) that outsiders failed to understand.

The Refinery29 founding team formed in 2004, and in those early days (before Twitter had even launched), people struggled to grasp even the concept of digital media. The co-founders’ pitches were met with skepticism.

“We would go talk to people, and they would act like we were trying to sell them a carpet or something,” Gelardi says. “They thought it was a scam.”

Potential advertisers and brand partners also didn’t think customers would ever want to buy something online. “I just remember thinking, like, ‘I don’t think that’s true,’” Barberich says.

That skepticism gave them an advantage, though: It gave Refinery29 the freedom to operate and experiment without the pressure of competition.

Today, Refinery29 has an international audience of 550 million and has earned multiple distinctions, including Webby awards and Inc. 500 list mentions.


Key Takeaways

  • How the two met and influenced each other’s decision to go all in on Refinery29
  • The early days at Refinery29 when wireframes were hand-drawn
  • The freedom of operating under the radar when digital media was still the Wild West
  • The critics who doubted the business model and thought it was a scam
  • What they lose sleep over
  • How they approach content creation
  • What they look for when hiring
  • The advice they would give to entrepreneurs who want to use content to grow their businesses
  • How they define quality content
Direct download: FP253_Refinery29_PT2.mp3
Category:general -- posted at: 9:18pm AEST

Media, Refined

How four founders turned a sketch on a cocktail napkin into an iconic digital media brand.

One night in 2004, in a bar in New York City, three ambitious entrepreneurs huddled around a cocktail napkin and sketched out a vision.

They essentially wanted to translate the concept of the mall for the internet, only instead of catering to big name brands and retailers, it would connect visitors to all of the amazing independent brands and makers that were flourishing at the time.

That initial sketch—it started as a picture of a virtual mall—has evolved a lot since that night, and the team solidified around four dedicated co-founders. But 15 years later, the dream of Justin Stefano, Philippe von Borries, Christene Barberich, and Piera Gelardi has become a reality, and so much more, in the form of now-iconic digital media company Refinery29.

“One of my biggest regrets to date is that we didn’t save the napkin,” Stefano says.

Since they set out on that journey, the team has created an online space where media targeted toward women is distilled, removing the impurities of stereotypes, taboos, and shame. Initially focused on fashion and style, Refinery29 has since expanded to a staggering breadth of content.

Covering almost every topic imaginable—from skin care to the latest in immigration legislation—Refinery29 is a comprehensive digital media company dedicated to elevating women’s voices. It’s built an international audience of more than 550 million across all its platforms, which include all major social media, a YouTube channel with nearly 2 million subscribers, an award-winning podcast in its fourth season, a short film series, an app, and more.

But Stefano and von Borries, the two who initially had the idea for Refinery29, didn’t come from a background in publishing or fashion. In fact, as you may have noticed, they aren’t even women. But they saw a need, set out to meet it, and connected with the right partners to realize their vision and help it evolve.

Refiners Assemble

In the early 2000s, Stefano and von Borries were just a couple of friends from high school, who had recently graduated from NYU and Columbia, respectively, and were embarking on their first post-grad endeavors.

Von Borries headed off to Washington, D.C., to work for a political startup called The Globalist, and Stefano took a position with the Civilian Complaint Review Board in New York City, where he investigated complaints against the NYPD.

Despite the distance, the duo stayed close, and maintained a group of friends who were mostly in the creative space. They began to notice a frequently recurring topic of conversation among the group: dissatisfaction with media coverage, especially when it came to fashion.

“Most of the media companies that existed, most of the magazine businesses, were fairly mainstream,” Stefano says. “They would write about big designers that bought pages in their magazines. That’s how the model worked.”

Stefano and von Borries found that many of their friends still read these magazines, but not because they felt particularly connected to the content.

“They didn’t think it was good. They didn’t think it was interesting,” Stefano says. “It was just what they were forced to read, because that’s what you could buy at a newsstand.”

Their friends hungered for something with a more independent edge and authenticity, but couldn’t find it anywhere.

So the pair had the spark of an idea: What if they created something that appealed to young New Yorkers by focusing on serving their audience rather than on serving big companies and brands. But with no experience in publishing or fashion, they knew they needed to call in reinforcements.

At the time, Piera Gelardi was dating von Borries (they went on to get married), who worked as the photo director at CITY Magazine. When von Borries shared their idea and asked for her advice, she encouraged him to reach out to her former boss and mentor at CITY, Christene Barberich. Her knowledge of fashion and brands, as well as the world of publishing, would prove invaluable to the pair.

Barberich says that she was already paying close attention to the transformation happening in the media landscape. She noticed that with the rise of the internet, the one-way nature of traditional publications, with outlets talking at their audiences instead of with them, was slowly being set aside in favor of platforms offering more conversational approaches.

So when von Borries and Stefano shared their idea, she had a gut feeling that they were on to something big.

She immediately reached out to Gelardi and told her that she didn’t just want to consult. She wanted to become a partner in the endeavor. Barberich’s infectious excitement for the project then made Gelardi reevaluate her own position as a consultant.

“Because she wanted to sign up, it showed me that bigger vision and also reminded me to think about my own value in the equation,” Gelardi says. “Now we have four co-founders.”

Building the Brand

With the team assembled, the quartet was anxious to get their vision off the ground as quickly as possible.

But all four of them still had day jobs, so much to learn, and very little money to put toward the project. They met in a coffee shop every night after work and on every weekend as they powered toward their goal.

“It just became an obsession until we got it live,” Stefano says.

They called in all kinds of favors with friends who were programmers, engineers, and graphic designers, and built the first iteration of Refinery29 over a period of six months.

“It felt like forever,” Stefano says. “That six-month period, I think it felt years of work went into that.”

But in June 2005, the wait was finally over, and the team celebrated the launch of Refinery29 at a bar called Union Pool over pizza and beers. Looking back at nearly a decade and a half and several waves of changes since, the founders are still proud of the original website they launched that day.

“When you look back at the first iteration of Refinery29, it just really, deeply warms my heart, because I think it’s still beautiful,” Barberich says.

While the website received some fanfare on launch day, growth was a slow, gradual process, and they struggled to be taken seriously, especially by traditional media outlets.

“Most of the traditional publishers saw digital as a phase,” Gelardi says. “It’s so laughable now, but truly we would go talk to people, and they would act like we were trying to sell them a carpet or something. They thought it was a scam.”

Challenges aside, the untested nature of their business model was also a blessing in disguise.

“I think we were able to really pioneer this new space because it was, you know, an open road,” Gelardi says.

Barberich agrees. “When you start out and you really are at the beginning of something, you have so much freedom to just test things,” she says. “I do credit that period—the first two years when we were essentially flying under the radar—as this really important testing ground for us.”

They gradually tried out new content, such as a segment called “Neighborhood Watch,” in which local creatives shared fun activities and events they loved, and “Spotlight,” a section featuring products by homegrown, independent makers.

“The products that we would feature would sell out overnight,” von Borries says. “That was the first time that something we had created had really been validated. So we started to look into commerce.”

In early 2006, they decided to raise capital for the first time to fund a marketplace on their website, and in 2006, it launched, taking Refinery29 into its next phase.

“We didn’t engineer this thing at all to be what it is today,” von Borries says. “In fact, I think the journey for us has been sort of going down the river and hitting different moments of momentum in the business and seeing the world shift.”

And as the world shifted, so did they.

Experiments and Expansions

Before long, von Borries had quit his D.C. job and returned to New York City to work full time for Refinery29, and not long afterward the other three joined the work full time, too.

Stefano says that, over the first five years, they sold ads, hosted live events, held sample sales (retail events that involve selling extra prototypes, often from big names in fashion or design) and did everything they could to drive slow-but-consistent growth that took them to $1.7 million by their fifth year.

They then decided to raise capital to grow their branded content and native advertising. This resulted in a single-year leap to $8.9 million in revenue.

“It was not a fast journey,” Stefano says. “I think that a lot of people have this belief that you’ll launch a business and within, you know, 18 months, you’re going to be on fire, but it often takes far longer. And I would say it took us probably 10 years before we felt like we had a business that was here to stay.”

As von Borries and Stefano toiled away on the technical and management side, Barberich and Gelardi dove into the content and creative aspects of the business.

“Our desire has always been to elevate underrepresented voices, to really bring these new ideas to the surface and challenge sort of what is in the mainstream, and how the media speaks to and about women,” Gelardi says.

While the focus was initially centered on fashion and style, the pair slowly experimented with content expansions that appealed to the women who visited the site. Barberich was interested in topics surrounding health and wellness, so she tested the waters and found the audience receptive. Gelardi noticed that most mainstream editorial content on sex for women was “not focused on women’s pleasure or bodily autonomy,” so she looked to offer something better.

As they grew, they found an almost endless hunger for content on just about every topic imaginable, and with each new addition, a new wave of readers joined the ranks. Soon, stories on politics, finances, and entertainment appeared on the website, continuing to meet the interests of modern women.

They were also able to quickly learn from mistakes and make changes, thanks to the instant feedback provided by comments, shares, and analytics.

“We really were focused on experimentation,” Gelardi says. “We were so invigorated by having access to the knowledge of our audience in real time.”

With the kinds of data that traditional media outlets simply didn’t have at their fingertips yet, they were able to make informed decisions and pursue avenues that seemed utterly foolproof. But, Barberich says, information in this space can be both a blessing and a curse.

“I think in some ways you lose that spontaneity,” she says. “Just having an idea to do something and being able to pursue it and not worry so much about what the outcome was going to be or worry that it was going to hit a certain traffic benchmark.”

So while they take advantage of the analytics available to them, Gelardi says she always wants to leave room for risks.

“I think influence also comes down to risk-taking,” she says. “It’s the art and the science; it’s not just about volume. Quality can be subjective, as well, but I think it is about risk-taking and knowing that core of who you are and staying true to it.”

Barberich and Gelardi say that they see their roles as a balancing act between the numbers and creative spontaneity.

“I think that that’s really what motivates people,” Barberich says. “When they feel like they’re making content that they deeply love, but that’s also touching a person’s life. The greatest success is to know that something struck a chord that is universally felt.”

Scaling With Heart

As the company continued to grow, all four founders felt an overwhelming pressure to keep the train on the tracks.

“I think that a lot of people lose sleep in this company because they care so much,” Barberich says. “In laying that foundation, we want to make sure that people feel really fulfilled by it and it doesn’t lose its path.”

They knew they had to stay true to the heart of their mission and remain in sync with their audience, all while rapidly expanding far beyond what they had imagined possible.

“The audience has been the single most important focus—and staying committed to that audience—and clearly everything that’s happened in the world at large has sort of snowballed our commitment to serving women amazing content,” von Borries says. “Our belief is that, in this moment, to really build a long term, sustainable brand in this space, you really have to mean something to your audience.”

And Barberich believes the key to scaling while staying true to the heart of the business lies in a single, but incredibly vital, part of the business.

“Honestly, if I’ve learned anything in the near-14 years that we’ve been doing this it’s that it all comes down to the people that you hire,” she says, “because scale is all about the people that you’re trusting to handle the scale.”

And she says they have been fortunate at Refinery29 to find and hire people who care deeply about the mission of their brand.

“When you bring people on board that really, automatically love the brand, when things get har, and they will inevitably get hard, it actually helps those people to deal with the issues that arise and recover quickly.”

Gelardi also believes that hiring new staff members who have that entrepreneurial spark inside them helps the brand thrive.

“The industry that we’re in is ever shifting. The work that we do is ever shifting,” Gelardi says. “I think it requires that level of entrepreneurial creativity in order to really be able to roll with things and to find the solutions.”

Establishing a Legacy

Much has changed in the 15 years since the four founders first tossed around the idea for Refinery29. Especially on the internet.

What once felt like a wide open space, now feels more like an overstuffed room pumped full of noise. Because of this, von Borries believes people have begun seeking more intimate, offline experiences, something Refinery29 is working to supply.

“We were always doing events,” he says. “Back 15 years ago when we launched Refinery, we would host local events at stores and boutiques and would bring people together. We’ve always been thinking about the real world, and when you do something in digital, the real world is very validating.”

One such example of Refinery29 IRL is 29Rooms, an art exhibition that features 29 collaborative spaces touching on topics meaningful to readers, such as virtual reality, body positivity and music.

At the end of the day, all four founders are focused on building a legacy they can be proud of.

“You can’t have a media company, I don’t think, without having a really true understanding of what it is you want to leave behind someday,” Barberich says.

And she believes that today’s world, with its renewed focus on social justice, women’s rights, and political activism, is the perfect place for a platform like Refinery29 to thrive. Now more than ever, people are seeing unmet needs, especially in areas of representation and diversity, and feeling driven to meet those needs.

“I think the motivation to start a business is fairly universal,” Barberich says. “You feel that there is something missing. You feel that there is something missing and usually, you’re not the only person.”

She encourages those who feel that tug not to ignore it, but to step out boldly.

“When that happens, you have to really face the facts that this is going to be scary. It’s going to be a ton of work. You’re going to make mistakes. You’re going to need the help of a lot of people, and a lot of times you’re going to need their help for free, and you have to be able to ask for that help, so great relationships really make a difference.”

When looking at Refinery29, that was certainly the case. If one thing made Refinery29 what it is today, it’s relationships.

The relationship built between two high school friends. The relationship between a mentor and her intern. The relationship between a couple that brought them all together. And the relationship between a business and its audience—a two-way exchange of encouragement and authenticity that has amplified the voices of women for 15 years and will continue to do so into the future.


Key Takeaways

  • Details on the night Philippe and Justin sketched the rough idea for Refinery29 on the back of a bar napkin
  • One of Justin’s biggest regrets
  • How long it took them to launch the first iteration of Refinery29 and how much it cost
  • What the first version looked like and how the launch was received
  • At what point they left their jobs and started monetizing the site
  • The stats—audience size, subscribers, event sales—that show how their business is doing now
  • The new media model and what to consider if you plan to start a media company
  • When a bootstrapped company should start monetizing
  • Monetization models for media companies
  • Exciting moves coming up for Refinery29
Direct download: FP252_Refinery29.mp3
Category:general -- posted at: 5:42pm AEST

The Open Source CEO

Bob Young’s journey from renting typewriters to co-founding an open-source software company to founding a self-publishing platform.

Entrepreneurship carries a lot of prestige these days. But back in the 1970s, when one freshly minted, Canadian college grad decided to start his own business, the only real perk was a business card that read, “Bob Young: President” that he could show to his mom.

This, Young explains, was the single greatest benefit of starting a business back then. It wasn’t about the money, the eager investors, or the thousands of devoted fans (he didn’t have any of those). He just hoped he could reassure his mom that she didn’t have to worry about him anymore.

“We now have the smartest kids in our high schools going to college to study entrepreneurship,” he says. “Whereas, back in my day, all the smart kids went and got ‘real jobs’ as lawyers or accountants or whatever and became CEOs of big corporations, and it was us dumb kids who started businesses because no one would employ us.”

For Young, that meant printing up a fancy business card and, with a little money from friends and family, buying a small, failing typewriter rental business for cheap.

From there, though, things got interesting. Young quickly pivoted from typewriters to computers, until a mid-career stumble led him to the world of open source software, a field in which he thrived. Young has since gone on to found Red Hat, a multinational company that offers non-proprietary software solutions to businesses. In 2018, IBM announced it would acquire Red Hat for around $34 billion.

Today, Young is at the helm of a few businesses, including self-publishing platform Lulu.com, continuing his passion for democratic, open distribution models that favor the little guy. But despite his 40 years in entrepreneurship, he still lists just a single skill under “Specialties” in his LinkedIn bio: typewriter sales.

“I’m a typewriter salesman, and that is the value I bring to the companies that I’m involved with,” Young says. “I’m a sales and marketing guy, and I have to hire smart accountants and smart engineers and smart product managers, because those are skills that I don’t have. My one contribution is in the sales and marketing side of the projects I’m involved in.”

When Success Turns Sour

Young realized almost immediately that his first business had to evolve, and fast. Shortly after he bought the typewriter rental business, he dug through old customer records to find those listed as inactive, and began calling them to try and entice them back into the fold.

One of the businesses that had often rented typewriters from the previous owner was a phone company called Bell Canada. After speaking with the office manager, a sweet woman who invited him to come visit even though, “when you come by all I’m going to do is show you why I don’t need your services anymore,” Young headed off to downtown Toronto to meet with her.

As she walked him through the open-plan office building, he saw several hundred employees, who only four years previously had used rented typewriters, at work in their cubicles. They were all staring into computer screens.

“We then, immediately of course, got into the computer equipment rental business,” Young says, laughing.

He managed Hamilton Rentals from 1979 until he sold it in 1984. He then founded Vernon Computer Source, another equipment rental business, that same year.

In 1992, Young was on cloud nine. He had just sold his second computer rental business to technology services company Greyvest Capital, Inc., mostly for shares in the company, and took a stable, comfortable job there.

Then came NAFTA (the North American Free Trade Agreement), which eliminated tariffs between the United States, Mexico, and Canada. That led to financial troubles for Greyvest, and suddenly Young’s life ceased to be as stable as he’d expected.

“In ’93, I found myself in Westport, CT, unemployed with a net worth of something less than it had been when I graduated college 15 years earlier, only now I had three children, a wife and a big mortgage.”

Just as Young had made his next big step forward in his career, it had all come crashing down around him. But looking back on this time in his life, Young is grateful for this heartbreaking failure, because he links it directly to the birth of Red Hat, Inc.

Trying on a New Hat

Shortly before its demise, Greyvest sent Young to New York to pursue the Unix workstation (a special computer designed specifically for scientific or technical endeavors) market, asking him to get to know the users in the big financial services companies and engineering companies in and around the city. Greyvest was in pursuit of new rental and leasing customers, and this was precisely what Young did best.

To accomplish this, he had been attending evening user group meetings and offering a helping hand. He had even started a modestly sized newsletter.

But when the bankruptcy of Greyvest forced him to walk away from the computer rental business for good, his goals shifted. What if, he wondered, he could transform his newsletter into something more?

As Young explains, the true value of an online newsletter doesn’t lie in the subscriptions. It’s all about the mailing list. Products of value to those particular customers can be marketed and sold using the list. And so, ACC Corp. was born, and through it, Young transformed his mailing list into a catalog filled with programs and software that catered to his audience: the ACC PC Unix and Linux Catalog.

Linux and Unix were two similar but competing operating systems initially released in the early 1970s. The major difference? Linux was free and open sourced. Unix was not.

Through the catalog, he had the greatest success in the sale of Linux-based products, so when he asked his customers to share what else he could add to his catalog, and they directed him to a tiny project filled with potential called Red Hat Linux, he was intrigued. Red Hat Linux promised to be a new and improved version of the Linux Young’s customers already knew and loved, so Young knew he needed to check it out.

Young called the creator, Mark Ewing, who was working out of his spare bedroom and his own bank account, and asked him to send over 300 copies of Red Hat Linux for him to sell through the catalog.

Silence.

Young questioned Ewing’s hesitation to do business with him. Ewing explained that he had only planned to manufacture 300 copies of Red Hat Linux in total.

Young meshed his big dreaming style with Ewing’s engineering prowess, and the two co-founded the version of Red Hat, Inc. that still thrives today.

He had taken a circuitous route to the software industry, but he was grateful that he finally arrived when he did.

“Whether it was Steve Jobs or Bill Gates, they’re both contemporaries of mine and it’s been fun sort of growing up in the industry watching those guys be successful,” he says. “I was late to the party of success, but I was pleased with Red Hat’s success.”

Young served as the company’s CEO from its founding in 1993 until shortly after the company went public in 1999.

“Once we became a public company, and we had 400 employees, I realized I’d never worked for a company of 400 employees, much less managed one,” he says.

As he faced down the wild host of new rules, regulations, and responsibilities that came with being CEO of a public company, Young recognized that the best thing he could do to ensure the company’s success was to embrace his own weaknesses and step away.

“One of the tricks to being successful is to be self-aware,” Young says. “None of us—no human being—is anywhere close to being perfect. In fact, I’d argue that most of us are barely adequate, even among the most successful of us. But if you know what you’re good at, and you know what you’re not good at, then you can build organizations that protect themselves from your failings.”

Young also recognized an entrepreneurial wanderlust stirring in his heart.

“I’m an early stage startup guy,” he says. “I really, really like the big idea, and I really like selling the big idea, but once I convince people that the big idea is worth pursuing, I lose interest in it and I’m looking for the next big idea.”

He explains that this is an excellent quality when you’re just starting a business and hunting for your great, big idea, but that, once a company is off and running, it can become a serious problem.

“Repetition and precision are things I do not do,” he says with a chuckle. “I never have done. This is why I was such a terrible student as a kid. My mind just doesn’t work that way. My mind works always on the next idea.”

So, he decided to call Matthew Szulik, who would become the next leader of Red Hat, into his office for a chat.

“Probably the biggest single contribution I made to Red Hat’s success was getting out of Matthew’s way and letting him turn our fledgling Red Hat business into the billion-dollar enterprise it is today.”

Although the time had come to bid Red Hat farewell, Young is still incredibly proud of their ongoing success.

“It was this wonderful adventure that worked out astoundingly well,” he says. “We weren’t sure if we could build a business there, but we knew if we could it was going to be a huge business, because open source—sharing your software, sharing binaries with your customers—was simply a better way of building software than the previous proprietary model that all the other software companies were pursuing at the time.

“To have that vision come true has been a bit of an out of body experience, and it gives me great pleasure,” he says.

And just like that, the co-founder of Red Hat was off on a journey to find his next big idea and turn it into a reality.

Open Source Publishing

Today, at just shy of 60 years old, Young owns the Canadian football team the Hamilton Tiger-Cats and serves as CEO of craft marketplace Needlepoint.com and chairman of drone company PrecisionHawk. But the endeavor he says he is currently most passionate about was one he founded in 2002—Lulu.com.

Through this print-on-demand self-publishing and distribution platform, Young wanted to revolutionize the publishing industry. He wanted to serve authors who write on niche subjects and catered to niche audiences. In other words, the ones that would be turned away by the traditional publishing industry, no matter the value the book offered to the market it intended to serve.

“We serve the interests of the author,” he explains. “The publishing industry is set up to serve the interest of the readers, and the author is just a cog in their machine.”

Young has a special passion for creators would otherwise get chewed up by “the machine,” no matter their industry. This is partly why he recommends founders consider platforms like Shopify to sell their products rather than relying on the “FANGs” (Facebook, Amazon, Netflix and Google).

“The consolidation we are seeing on the internet is making early internet pioneers nervous,” Young says, “because the whole point of the Internet was to bring more democracy—to put more control in the hands of the consumer, of the user of the internet—and we are seeing it move away from there.”

When a business owner sets up an Amazon store or a Facebook page to sell from, those customers no longer belong to the business owner. They belong to Amazon or Facebook.

“You want your customers to have loyalty,” he says. “The problem with setting up your shop on Amazon is Amazon is competing with you for the brand and the attention of the customers you’re sending to Amazon, and that’s not in your interest of building a strong brand for your product and your service.”

Young explains that when an author sends their customers to Amazon to buy their book, Amazon immediately begins recommending other titles in that subject to the customer before they have even been able to purchase the title they originally intended to buy.

“Amazon has just absconded with your customer,” he says. “Amazon is happy to have you as a merchant, because they want you to bring all your customers to Amazon so they can sell them other things. Shopify is the exact opposite of that.”

Rather than sending new customers to Facebook.com/YourBusiness, he urges business owners to start sending customers to YourBusiness.com. He also encourages founders to “pay attention to the principles behind the internet, not just the buttons that Facebook and Google give you.”

“The internet itself is this great, open vista, and if you build your market using the foundational elements of the internet, no one can ever take that away from you.”

He’s hopeful that the rising generation of founders and business owners will be savvy enough to navigate these stormy seas.

“As this next generation of entrepreneurs get going, they’re going to understand…you’ve got to be really careful about surrendering your customer to your supplier,” he says. “You want to find suppliers who are going to partner with you to build your business, not using you to build their business.”

Whether in the computer rental space, the arena of open source coding or his current realm of self-publishing, Young has always lived by the principal of democratizing access to the tools that build success.

Through collaboration and inviting more voices to the table, advancements come more swiftly, and this is a principal that even Young, a self-proclaimed “dumb kid” who started out selling typewriters, can embrace.

Bob Young’s Tips on Cultivating Self-Awareness

Bob Young says that he owes much of his success to self-awareness. By leaning into what he is good at and hiring others to cover areas where he struggles, this self-proclaimed typewriter salesman has found remarkable success. Young insists that even those who struggle with self-awareness can develop it, and these are three of his tips for harnessing that growth:

1. Put the Pride Aside

“So many of us are prideful,” Young says. “We worry about being criticized.”

But as founders, and as humans, there is always room for growth. Rejecting that evolution in favor of belief in our own mythology only prevents us from reaching our greatest potential. Young says that, in order to achieve any increased level of self-awareness, pride first has to be eliminated from the equation.

2. Listen to Critiques More Than Compliments

Once pride is silenced, it’s time to let the criticisms reach our eyes and ears, even though it may sting a little.

“We worry that people think we’ve made a mistake or that we’ve done something dumb,” Young says. “If you can flip that around and look at your mistakes as your biggest single learning opportunity that day or that week or that year, now when people criticize you, they’re more valuable to you than the people who compliment you.”

Choosing to embrace our own failings today, no matter who brings them to our attention, is the only way to make sure those same failures don’t repeat tomorrow.

3. Be Honest With Yourself

Young is comfortable with sharing the skills he lacks, especially in the area of customer support. He explains that, although he loves his customers, he cannot find the patience to help a new customer struggle through a problem he’s solved for 600 customers who came before.

He says that it took many years, and many, many customers pointing out this flaw, for him to internalize the criticism, but once he did, and once he genuinely considered the critique, he recognized that he and his customers would be better served if left that work to someone else. He says his brain simply isn’t wired for customer service, so he relies on those around him who are.

To maximize self-awareness, Young says we should accept what we are great at, grow where we are able, and rely on the talents of others to support us where we perpetually fall short.


Key Takeaways

  • How Bob got his start in entrepreneurship by selling typewriters
  • How a visit to Bell Canada convinced Bob to make the transition from typewriter rentals to computer rentals
  • How his net worth got wiped out and what he did next
  • His transition from equipment leasing to software when he cofounded Red Hat
  • Why he decided to step away and hire a CEO for Red Hat
  • The project he cares most about now: print-on-demand self-publishing and distribution platform Lulu.com
  • Why he’s paying a lot of attention to Shopify
  • Why the next wave of entrepreneurs needs to be wary of relying on big tech companies
  • How to cultivate more self-awareness as a founder
  • His thoughts on Red Hat being acquired by IBM for $34 billion
 
Direct download: FP251_Bob_Young.mp3
Category:general -- posted at: 6:36pm AEST

A viral video put Dollar Shave Club on the map, but it took a team to get it where it is today. CEO Michael Dubin talks about DSC’s growth, acquisition, and expanding product line.

It was the commercial seen round the internet. On March 6, 2012, Dollar Shave Club uploaded its first YouTube video, featuring one-and-a-half minutes of offbeat humor, during which founder Michael Dubin rides in a kid’s wagon, wields a machete, and encounters, among many other things, a person in a bear suit.

“Do you think your razor needs a vibrating handle, a flashlight, a back scratcher, and 10 blades?” Dubin deadpans while riding a forklift. “Your handsome-ass grandfather had one blade—and polio.”

It was a totally unique way to explain a simple concept: For an affordable fee, Dollar Shave Club subscribers would get quality razor blades delivered to their doorsteps on a regular basis, thus skipping the trips to the store for overpriced, gimmicky alternatives. And people loved it—the resulting traffic from the video’s launch crashed their site.

Since then, that commercial has been viewed over 26 million times on YouTube. It cost only $4,500 to produce, yet it launched the company on a trajectory that would later lead to a $1 billion acquisition by Unilever.

“It put us on the map, no doubt,” Dubin says. “We wouldn't be where we are without it.”

But this isn’t a story about Michael Dubin and his famous viral video. It’s not even a story about razor blades. As Dubin is quick to point out, getting DSC to where it is today required a team effort. And with its ever-expanding product line, today, the company is about so much more than a good shave.

Timing Is Everything—In Comedy and Business

They say the most important thing in comedy is timing; the difference between roaring laughter and painful silence can be a fraction of a second.

Maybe this was something Dubin learned during the eight years he spent training at New York City’s Upright Citizens Brigade, an improv theatre with notable alumni such as Saturday Night Live’s Horatio Sanz and Amy Poehler. While taking improv classes, Dubin worked various media jobs, starting as a page at NBC, then moving into production and news writing at MSNBC, and eventually, getting into digital marketing at SportsIllustrated.com.

But it wasn’t just Dubin’s punchline delivery that set DSC up for success out of the gate. Even the timing of its launch was strategic. As Dubin told NPR’s Guy Raz in a “How I Built This” interview, he chose that specific date—March 6—because, with his media background, he knew that news outlets would be hungry for a tech story leading up to the annual South by Southwest conference that takes place in Austin in mid-March. The launch date also coincided with Dollar Shave Club’s announcement of its $1 million seed round.

It Takes a Team

A viral video can be a major boost for any company, but it’s far from the secret to a successful business. For that, you need great people, and assembling them is easier said than done.

“Big business is a team sport,” Dubin says, “and it requires talent from all corners of the universe that will help you build what you're looking to build.”

Knowing where to find your future teammates can be a challenge.

“Finding great talent is always going to be the hardest thing that any entrepreneur does,” Dubin says. “Because, ultimately, there's somebody out there in the marketplace that can help you do your job really well and help you build your company the best way possible. But you've got to go out and find them in the great wide world.”

That’s why Dubin is a fan of recruiters, “because recruiters are paid to have knowledge of the network that you're looking in.”

When building his team early on, Dubin had just moved from New York to Los Angeles and lacked a network in his new city, so he relied on his early investors to make introductions. “That's a great reason to take investment—besides, obviously, needing to take it to drive growth and invest where you need to.”

To attract the right talent, Dubin recommends founders do two things. First, focus on your company’s mission. What are you trying to achieve? What gaps in the market are you trying to fill? Why do you come to work every day?

“Really talented people want to work for companies that have purpose,” he says. “And that's defined in the mission of the company.”

Second, consider granting employees equity. “People want to feel like they're participants in the success—if you ultimately do have the success—and that's super meaningful.”

And if your mission changes, that’s okay. It’s natural for it to evolve as your company grows; that’s certainly true for Dollar Shave Club. “It started out more as a shave-only proposition,” Dubin says. “And then it grew out into becoming…more of a men's health, more of a men's grooming platform.”

What’s their mission today? “Help guys take care of their minds and bodies so they can be their best selves.”

Growth, Acquisition, and Expansion

Taking on the shaving industry was a gutsy move. To put that into perspective, it was around the year 1900 that King C. Gillette invented the world’s first disposable razor, according to Gillette’s website. So when Dubin decided to disrupt the shaving market, he was going up against a company that had already been in it for over 100 years.

Eight months after the launch of its first commercial, Dollar Shave Club secured a Series A round of $9.8 million. And two years after that, the subscription razor blade company hit 1 million members.

In July 2016, Unilever acquired Dollar Shave Club for a reported $1 billion. At the time, DSC had 3.2 million members and was expected to exceed $200 million in turnover (which is sometimes defined as net sales and sometimes defined as revenue) that year. Dubin stayed on as CEO and continues to serve in that capacity today.

“Unilever's been very good to let us run the company our way,” he says, “and that was part of the design.”

Today, Dollar Shave Club boasts over 300 employees and continues to expand its product line and global footprint. Beyond razors, DSC now sells cologne, body wash, shampoo—even flushable toilet wipes (they’re called One Wipe Charlies). It also has sites live in Australia, Canada, and the UK, with plans to expand further in the next couple of years.

Knowing When It’s Time to Add a New Product

For a long time, razor blade subscriptions were Dollar Shave Club’s bread and butter, and it gained a loyal following with its single product line. But growth almost always means product expansion, so how can a founder know when it’s the right time to add new products?

“You have to stay true to your core,” Dubin says. “You have to develop credibility in your core categories before you can expand outward. There is such a thing as doing that too fast.”

Timing matters. Move too fast, and you could confuse your customers and dilute your brand. Too slow, and you may miss your opportunity to take the market.

As for figuring out what your next product should be: ”You should definitely do your research. It's always a blend of gut and research.”

Time Well Spent

These days, Dubin doesn’t star in any viral videos, but he told Foundr about a recent, albeit lesser-known, YouTube video of his commencement address to the 2018 graduating class of his alma mater, Emory University. In it, he sums up the lessons he’s learned over the years, including one about “little choices.”

“They're the ones you make more frequently, maybe even every day,” he says to the graduates, “the ripple effects of which, I believe, actually have a bigger impact over the course of your life. They’re choices about where to invest your time.”

Given Dollar Shave Club’s meteoric success, it’s safe to say that Dubin and his team’s time has been well spent.

5 Entrepreneurial Lessons from Michael Dubin

Dollar Shave Club is a massively popular company that attracted a billion-dollar acquisition. What are some parting lessons we can take from this interview with CEO Michael Dubin?

  • Video isn’t a magic bullet.“What worked for us is not necessarily going to work for everybody,” Dubin says. “Unfortunately, there's no easy answer here. The best advice that I can give to somebody is to find what makes you special, understand what unique talents you have or your team has, and leverage those to try and cut through the noise. It's not easy. It's not easy, and video is not the surefire way to do it.”
  • Culture is more than company perks.“Culture's a tricky word. A lot of people mistake culture for meaning like a coffee bar and a beanbag chair for everybody or stand-up desks, and that's not what culture is. Culture is a much more complex, complicated animal than that. And to me, culture means…people are into their jobs, they feel like they're contributing to the mission, they feel like they're being valued for their contributions and recognized for their contributions, and that they have a career path at that company—that's culture. All the other stuff is sort of superfluous icing on the cake.”
  • Only use a subscription model if it enhances the customer experience.“A lot of people get addicted to this notion of a subscription business because they love the idea of monthly recurring revenue, but you should only be launching a subscription business if it's going to be an enhancement to…the customer's experience. The customer's experience is the most important thing. If delivering them a subscription is going to make their life better or happier, you should offer a subscription. And if not, you shouldn't.”
  • Expect hard times.
    “You're going to go through hard times. You're going to go through lonely periods. That's to be expected. There's really nothing that anybody can tell you that's going to help make that feel better. … You just kind of have to go through it, truly.”
  • Take breaks.
    “My advice to entrepreneurs who are starting companies is you have to be relentless, but you also have to step away and take breaks. You can't work yourself to death because it's a marathon, not a sprint.”

 


Key Takeaways

  • His media background and the social network for travelers he tried to start before launching Dollar Shave Club
  • The importance of building a great team to help your business grow
  • How to attract and retain high-quality talent
  • How Dollar Shave Club defined its mission and how it has evolved over time
  • What the early DSC team looked like
  • The famous first Dollar Shave Club video
  • Life after Unilever’s acquisition of DSC
  • Challenges the DSC team faces as they grow the brand
  • How to know when to launch another product
  • Dubin’s thoughts on the physical product subscription model
  • How to build a healthy company culture
Direct download: FP250_Michael_Dubin.mp3
Category:general -- posted at: 12:18am AEST

Raise your hand if you’ve experienced the all-too-common dilemma of wanting to read new books but instead falling slave to long hours and mindless digital content consumption. (I’m raising mine right now.)

Self-education takes time, and time is often the one asset we don’t have nearly enough of.

Well, Niklas Jansen found a way to give his customers more time. “Some of my friends and I didn't have time to read books, and we were working full time. We also noticed more people consuming content on their mobile phones,” he says. “We wondered, ‘Is there a smarter way to combine these two things?’”

This was the very question that Niklas Jansen and three of his friends addressed as they formulated the idea for Blinkist, a mobile app subscription that provides 15-minute insights from the bestselling books we all wish we had the time to read.

Today, Jansen and his team of 130 are bringing ideas from the best nonfiction books to some of the busiest people on the planet. Blinkist is paving a new path for modern content consumption and self-education, and they’re doing it in a remarkable way.

Launch Day

Jansen has been an entrepreneur since he was in college. He did consulting for a couple of years, but once the idea for Blinkist hit him, he dove right in and founded one of the most unique startups in Berlin. That was seven years ago.

As Jansen and his three co-founders developed the company, they each managed different parts of the business: content, product, operations, and marketing. (Jansen owned the product side.) The team tried to stay lean from day one, a decision they’re happy about today because, as they scaled Blinkist, they didn’t become distracted by a large team.

“We had to figure out so much every day,” Jansen says.  Keeping the team small allowed Jansen and his co-founders to hustle every day, soaking in new knowledge by trying new things, reading voraciously, and talking to others. This process was especially important for Jansen, as he had no experience with product management prior to Blinkist.

Despite initial obstacles, it only took a couple of months to build the first version of the Blinkist product. To keep the development process simple, Jansen and his co-founders decided they only needed three things to get started: a mobile application, 50 nonfiction books to populate the app, and a marketing plan. “After five months, we were ready to launch,” Jansen says. “We were incredibly productive in that time.”

As the Blinkist team did their competitive research, they found that there was only one similar product on the market, but since it served a different audience and used a different business model, they weren’t worried. “We designed our content for mobile from day one in order to be different,” Jansen says.

Blinkist closed their launch day with five customers, “after our parents, of course,” Jansen says, laughing. To promote the launch of their product, the Blinkist team published a variety of articles in startup magazines and relevant websites. Jansen had high expectations for launch day. “I thought everything was going to explode,” he says.

The number of initial Blinkist customers was fewer than Jansen expected, but he still enjoyed watching people discover and purchase the product. “It felt good to watch it grow.”

And grow it did. Blinkist is now a worldwide product with major markets in the US, Canada, Australia, Great Britain, and Germany.

Growing Sustainably

The leap from five customers to more than five global markets wasn’t an easy one. It took years of trial and error, but Jansen and his team eventually scaled Blinkist to a successful, profitable level.

With unique approaches to fundraising, marketing, and team management, Jansen has lots of valuable insights to share with aspiring founders.

As they built the company, Jansen and his team raised about $35  million from investors in the US, Germany, and other parts of Europe. They raised their first $300,000  as early stage, pre-seed money. If he could, Jansen isn’t sure that he’d do that part again.

“We felt  a pressure to use it without having figured out a lot of things,” he says. He also suggests other founders be careful about taking on too much money too early. “Investors have expectations, and building a company takes time. Mistakes can be more costly if you have too much money in the bank.”

Of course, money can be helpful, but with too much, it can be tempting to spread your business too thin, too early. “If you can do one thing really, really well, that can be your superpower,” Jansen says.

Working from a small budget can also help you focus.

Jansen boils Blinkist’s marketing strategy down to one word: Sustainability. “It’s important that whatever you do in marketing to grow your company is repeatable,” he says.

For example, Jansen wouldn’t consider PR a sustainable growth channel. It might work a few times, but after one or two days, PR stops being effective. “Marketing needs to be able to be repeated and sustainable,” he explains. “You don't want to burn money for customers.”

As for Facebook and other social advertising, Jansen and his team know precisely how to target their customers and how much they’re going to spend on acquisition. Through different campaigns focusing on different creative elements, his team was able to conduct A/B testing and determine what the best parameters were.

They now apply those parameters to replicate successful campaigns. “It involves lots of mechanics and details, but once you find something that works, you can scale it,” Jansen says. “That's why we call it a ‘marketing machine.’ We automate as much as possible.”

Recently, Blinkist has started investing in TV advertising—a completely new channel for the company. “It’s very different from the others, but it’s exciting because now we’re part of mass marketing and mainstream media,” he says.

Additionally, Jansen and his team rely heavily on word-of-mouth marketing and customer stories to grow the Blinkist brand. “It’s a very shareable product,” he says. “People share stories about how they use Blinkist and how it improved their lives.” The team also polls customers and uses the feedback they receive to further improve the mobile app.

With such a robust strategy, one must wonder how the Blinkist team manages so many marketing channels. Contrary to what you might think, the team doesn’t outsource any of its marketing strategy or creative work.

Blinkist keeps everything in house, which is helpful for making lots of updates and changes to a campaign or strategy. “We want full control of the whole customer experience and what customers see from Blinkist,” Jansen says.

What started with the Blinkist co-founders testing various ads has turned into a team of six to seven tech marketing experts. Today, they manage their marketing by channel: Two managers for paid social (such as Facebook and Instagram), one for paid content (such as Outbrain), one for AdWords and Google, one for podcast and influencers, and one for TV.

The team also retains a creative team in house, including videographers, designers, copywriters. These folks work with the Blinkist channel managers, who develop audiences and strategies. These managers, in turn, go to the creatives for the right vision or creative assets.

A single, in-house creative team can be tough to share across an organization, but Jansen believes Blinkist has established a good model for dividing resources. “Some  designers work directly with marketing. Video and copy are shared with other teams, but they do prioritize marketing needs.”

At Blinkist, this model works because the marketing sees faster duration cycles than the product teams do. Marketing has daily cycles of content production, whereas product managers deal with longer cycles of design-build-test-repeat.

The entire Blinkist team still resides in Berlin. “We haven't expanded offices yet,” Jansen says. “So far, we’ve established a global business, but we work out entirely out of Berlin.”

What’s Next

While Jansen doesn’t plan on expanding the Blinkist team outside the Berlin office, he is excited for the international growth of the Blinkist product. The team is currently pushing into brand new markets and eventually wants to expand to be a truly global brand.

They’re also making changes to how they select and source the content available on the Blinkist app, by selecting local curation from different markets. “We want to find what's popular in each market and be very local when selecting and curating content,” Jansen says.

He’s also aspiring to build out more original content under the Blinkist brand. Right now, the product is mainly focused on third-party books and authors, but there’s a potential to create a learning space and provide new content formats.

At the moment, Blinkist is a curation tool, but Jansen can see the product creating original content, not unlike what Netflix has done. “We know what users like and their behaviors and favorite topics,” he said. “We can use that data to make original content that our customers love.”

Above all, Jansen encourages other founders to stay on top of what’s happening. “Learn as much as you can,” he says, “whether through books or podcasts or Blinkist!”

Key Takeaways

  • The origin story of Blinkist
  • How Blinkist can publish summarized content of nonfiction books and why they see themselves as a marketing tool for authors and publishers
  • What the first six months of building the product looked like
  • Why Jansen thinks Blinkist raised money too early
  • The inherent virality of Blinkist and other growth levers they’ve pulled
  • The Facebook ad “machine” they’ve put together for sustainable marketing
  • A breakdown of their paid social strategy
  • International growth and the introduction of original content on Blinkist
 
Direct download: FP249_Niklas_Jansen.mp3
Category:general -- posted at: 12:15am AEST

The Sky’s the Limit

Space enthusiast, doctor, and serial entrepreneur Peter Diamandis on abundance, exponential technologies, and why the world is better than you think.

Ever since he was a child, Peter Diamandis has been looking up, literally and figuratively.

Captivated by the lunar landing in 1969, he’s spent much of his life pushing the boundaries of space exploration through his various companies. And as a proponent of the concepts of exponential technologies and abundance, he has a refreshingly optimistic outlook on the future.

“I believe that we're heading towards a world where we can uplift every man, woman, and child on this planet,” he says.

And as the founder of more than 20 companies in the fields of longevity, space, venture capital, and education—perhaps most famously the XPRIZE—Diamandis is doing his best to advance the world he envisions.

“I’ve always followed my passion,” he says. “And at the end of the day, that’s really the world that I feel extraordinarily lucky to live in, one where I am doing what I want to do.”

Exploring Medicine and Space

Born in New York to Greek immigrant parents who both worked in medicine, Diamandis felt obligated to become a doctor just like his father. But as a child of the 1960s who was fascinated with the Apollo program, he also felt compelled to explore space. So, he did both.

After getting accepted into Harvard Medical School, Diamandis co-founded the International Space University, which today has graduated more than 4,600 students from over 105 countries, and started International Microspace, a rocket company that was later acquired by CTA Incorporated.

Even after he obtained his medical degree, instead of practicing medicine, Diamandis continued building businesses, many in the area of space. He founded XPRIZE, a global contest whose winners include a team that developed the first non-governmental manned spacecraft; and Zero-G, which has helped people like Stephen Hawking, Buzz Aldrin, and Martha Stewart experience weightlessness in a modified Boeing 727 that performs aerobatic maneuvers at 32,000 feet (if you fancy a ride, the Zero-G Experience starts at $5,400 per person).

While Diamandis has worked hard to get here, he’s having a lot of fun too. “I've always been a 9-year-old kid pursuing my dreams,” he says.

Turning Science Fiction Into Fact

Looking at Diamandis’ long list of companies is a bit like reading synopses of science fiction novels. Space Adventures sends private citizens to the International Space Station to live and work alongside astronauts. Human Longevity seeks to extend the human lifespan through genomic and phenotypic data. And XPRIZE hosts multimillion-dollar global competitions to solve humanity’s most challenging problems.

There are some truly out-of-this-world inventions that have emerged from XPRIZE competitions that are worth noting here. To make space travel possible for private citizens, Mojave Aerospace Ventures designed a privately financed manned spaceship with technology that was licensed by Richard Branson for Virgin Galactic. To provide clean water to the underprivileged, the Skysource/Skywater Alliance invented an energy-efficient device that gleans water from thin air. To make healthcare more accessible, Team DMI created a device that can run hundreds of lab tests on one drop of blood, alerting the user within minutes if they have a cold, the flu, or even Ebola.

Diamandis says that XPRIZE helps address just one of his many passions: “How do I empower entrepreneurs to really go big and change the world?”

On Emerging Technologies and Abundance

Watch the evening news or read the newspaper, and the world seems pretty bleak. But Diamandis believes we have good reason to be hopeful. One of his most popular contributions is his concept of abundance, which he’s given a TED talk and written a book about. It’s the idea that technology is transforming scarce resources into abundant ones, quickly closing the gap between the haves and the have-nots.

Google, for example, has given the general public access to a storehouse of knowledge that history’s greatest philosophers, mathematicians, and scientists could never have imagined.

Further, exponential technologies—such as artificial intelligence, 3D printing, and virtual reality—have made it easier than ever to produce solutions at scale, solutions that, previously, only governments and massive corporations were capable of producing.

“Energy is a perfect example,” Diamandis says. Humans went from killing whales to get oil for lamps, to mining mountains for coal, to drilling the ocean floor for oil. Meanwhile, the sun bathes the earth in more energy than we could use in a year. An exponential entrepreneur, therefore, would find a way to use technology to efficiently harness the sun’s energy and distribute it to the masses.

Through the lens of abundance, Diamandis sees an opportunity for entrepreneurs to change the world, so much so that he created an exclusive community, Abundance Digital, that aims to do just that. He hosts monthly webinars and provides courses to inspire its roughly 3,000 members to think bigger, teaching them that “the world's biggest problems are the world's biggest business opportunities.”

Because of exponential technologies, Diamandis envisions a future where AI makes education and healthcare effectively free and available to all, where self-driving electric cars make using a car service cheaper than owning a vehicle—a future where nothing is truly scarce.

Finding Your Massively Transformative Purpose

Though Diamandis keeps his eyes to the sky, that doesn’t mean he has his head in the clouds. He acknowledges that every new venture carries the potential for failure.

When asked if he ever has doubts when starting a new business, he says, “Of course, I mean, I'm not insane. But it doesn't slow me down.” That’s because, though he recognizes entrepreneurship’s inherent difficulties, he draws strength from his unshakeable sense of purpose.

Diamandis recommends beginning every entrepreneurial journey with determining your “Massively Transformative Purpose,” or MTP. This is what keeps you going when the going gets tough; it’s the thing that, even if you do not succeed, grants you the satisfaction of knowing that your time was spent improving humanity.

“People have to understand why they're building their business,” he says. “If you're just trying to build a business to make money, I view that as sort of an empty pursuit, and when it gets hard, you don't have the emotional energy to push through and succeed.”

So what are Diamandis’ MTPs? He has a few: opening up space exploration to more people, extending the healthy human lifespan, and inspiring entrepreneurs to solve the world’s biggest problems. For an advanced entrepreneur, having three MTPs is fine, but Diamandis recommends beginners start with just one.

On Hiring a Team and Finding a Co-Founder

Behind every great entrepreneur is a great team, and Diamandis is no exception. He has a roughly 12-person “strike force” that works with him across all of his ventures. Each team member has been carefully selected.

“I don't suffer assholes or fools,” says Diamandis, whose rigorous hiring process is proof of that. To fill a position, he’ll sometimes run a global contest. The winners advance to a 60- or 90-day trial period, after which, the entire team has to vote them in, meaning there must be 100 percent acceptance.

“One person who's out of whack can send the whole thing careening,” he explains. “So it's really important that we operate as a team.”

While he uses the Kolbe test, which assesses conative skills, Diamandis doesn’t rely heavily on testing to make his choices, preferring to use the team interview process as a major determiner.

Ultimately, though, his hiring decisions boil down to one simple metric: He needs to genuinely like the candidate.

“If when we're in the meeting and that person is talking, if I'm, in the back of my mind, saying, ‘I wish this guy would shut up,’ that's not a good situation. On the other hand, if we're in a meeting and I'm saying, ‘Listen, I haven't heard from you. I really want to hear your thoughts,’ that's a good situation. So I need to respect them and want to hear what they have to say.”

Those same likeability and respect factors go into his selecting a co-founder or CEO. For every company Diamandis has started, he picked a co-founder or two to help him get it off the ground. Now that he has more than 20 companies, for some of them, he may step back and serve as founder and chairman and then either promote a co-founder to CEO or hire one to run the company.

Moving Forward

Not one to rest on his laurels, Diamandis has his hands on many projects, including a new book he’s working on with Tony Robbins. “I'm doing a lot,” he admits, “but it's all driven by passion.”

As for work-life balance, for him, it doesn’t exist. “It's more about work-life integration,” he explains. “I am ‘on’ 24/7. I have two 7-year-old boys; I do my best to prioritize them, but there have been…too many days away, and so there is, for sure, the trade of time.”

That trade-off is a familiar one for any entrepreneur trying to make a difference, big or small. “I know some of the more successful Silicon Valley gazillionaires,” says Diamandis, “and it's brutal sometimes. But at the end of the day, it's living a life of meaning and a life of where you get to choose how you spend your time and the dent you want to leave on this planet.”

4 Lessons Every Visionary Founder Can Learn From Peter Diamandis

It’s one thing to want to build a lifestyle business, one whose sole purpose is to make enough money to support the way you live, but it’s quite another to want to build a business that changes the world. If you fall in the latter camp, here’s what you can take away from our talk with Peter Diamandis:

Be true to yourself.

“The most important thing you need to do as a founder of a company is know that you love what you're doing, and you're not doing it for your parents, for your friends, for your teacher, out of obligation. … You’re doing it because it is what you love doing.”

Know your MTP.  

“What's your massively transformative purpose? What is it that keeps you going? Who do you want to be a hero to?”

Think big(gest).

“I teach that the world's biggest problems are the world's biggest business opportunities. If you want to become a billionaire, help a billion people.”

Harness exponential technologies to help people at scale.

“As an entrepreneur, you can choose to work hard 40 hours a week…and impact a hundred people, or you can work those same hours and impact a million people. It's your choice. The tools we have to impact the world are extraordinary.”


Key Takeaways

  • How Peter grew up wanting to be an astronaut, went to medical school, and managed to merge his passion for space with his knowledge of medicine.
  • The 20+ companies he’s started, including Space Adventures, Zero-G, and XPRIZE
  • Peter’s advice for founders
  • The new book he’s working on with Tony Robbins
  • How he curates an amazing team, including his rigorous vetting process
  • How technology is taking what used to be scarce and making it abundant
  • How he’s inspiring entrepreneurs to think bigger and change the world through his exclusive Abundance Digital community
  • On using your “massively transformative purpose” (MTP) to drive your business forward
  • What Peter’s MTPs are
  • The sacrifices he’s had to make to get where he is today
Direct download: FP248_Peter_Diamandis.mp3
Category:general -- posted at: 8:27pm AEST

The Power of Focus

How Jake McKeon of Coconut Bowls stopped chasing new ideas, and scaled a business and community that he’s passionate about.

Jake McKeon considers himself an idea man, and that’s not always been a good thing.

For years, he lept from one idea to another, always enchanted by a shiny new business possibility. With a thumb on the pulse of social trends and a knack for testing new business ideas, McKeon always had two or three ventures going at the same time.

It’s common for new entrepreneurs to begin their journeys by following their ideas, imaginations, and curiosities. But McKeon was taking that to the extreme, and eventually found himself a little scattered. He needed to find a way to center himself, and ultimately that meant being grounded in his personal passions.

Through some tough experiences and hard lessons, McKeon learned to mute the part of himself that saw potential in every new idea. Instead, he turned up the volume on the interests he personally cared about the most, and let that guide him to his sole venture today—Coconut Bowls.

The name may sound a little funny when you put it in such a serious context. But today, Coconut Bowls is a thriving business with a charitable initiative that supports rural coconut farmers and local artisans in Vietnam and Indonesia. In the process, the company is providing people with ethical and healthy livelihoods and reducing environmental waste. Here’s how McKeon is proving that having a heart is good for business.

The Creation of Coconut Bowls

McKeon had already experienced a few failed startups by the time he finally connected with Coconut Bowls, but when this one took shape, it was an entirely different story.

“Coconut Bowls has been the most natural of all my businesses,” McKeon says. “The product fell into my lap.” McKeon was walking through a market in Bali and came across some handcrafted coconut products. He was running a health and superfood business at the time and thought that his customers would love this simple concept—bowls made from coconuts.

So, he had a bunch of bowls made, filled his suitcase, and started selling them online back home in Australia. He found that—on his shoestring budget—it was actually cheaper to fly back and forth to Bali with empty suitcases than to ship the product.

McKeon ended up making a few more trips, each time bringing more and more luggage. On one trip, he brought along a couple friends and a load of empty surfboard bags. “We didn’t have any surfboard equipment, just coconut bowls. So coming back through customs was ridiculous, but they let us through, thankfully,” McKeon says.

It wasn’t long after that trip when Coconut Bowls started to see sales and momentum build (and made the switch to sea freight).

The Backstory

But what originally brought McKeon to Bali, and to that fated market that brought him face-to-face with his most profitable business venture yet?

It was a thirst for travel and healthy food—and failure.

To understand McKeon’s story, let’s back up to the very first business he started, six years prior, Moodswing. Moodswing was a social networking app for sharing emotions. “I wanted to create a safe platform for peer-to-peer emotional support, for people to speak openly and honestly,” McKeon says.

With no experience in business or tech, McKeon came up with the idea for Moodswing, and simply assumed people would want it. Following that assumption, he went on to spent all $40,000 of his savings—money he’d originally intended to use to travel.

“Moodswing was my most outlandish business concept,” he recalls. “I was very naive at how hard the process was going to be.”

McKeon hooked up with a co-founder and developed the app idea. On top of his savings, he raised another $20,000 from family and friends, increasing his overall funding to $60,000. He also put significant efforts toward marketing it and growing his user base.

His growth hacking worked. In 10 weeks, Moodswing had reached a user base of 100,000 people, faster than either Instagram or Facebook had experienced early on.

Moodswing’s significant and immediate growth only fueled McKeon’s naiveté. “I thought I was the next Mark Zuckerberg.”

He flew to the States and met with a few investors, namely Snapchat investor Jeremy Liu. During McKeon’s pitch, Liu promptly asked about his app retention metrics, and McKeon was stumped. “I thought, ‘What are ?’” he says, laughing.

It turned out that only 10 percent of those who downloaded Moodswing returned, which reflected poorly on the user experience of the app. McKeon returned to Australia, humbled.

With only $20,000 left in the bank—not enough to improve on the app—he decided to pitch to an accelerator. They agreed to invest $25,000 in exchange for 10 percent of the business, but only if those friends and family who invested were no longer involved.

“So I used the remaining $20,000 to pay back our friends and family members who’d invested,” McKeon says. “I didn’t want them to lose out, and it was good, because I’d never do business like that with friends and family again. I learned that lesson and got out scot-free.”

McKeon and his team spent three intensive months creating a beautiful new app for Moodswing, then returned to the US to raise more money. “At this stage, Moodswing had a 60 percent retention rate, which was really good. Forty percent of users returned seven days later, and 30 percent returned 30 days later,” McKeon says.

Investors essentially told McKeon that if Moodswing could get to 10,000 daily users, they’d be able to raise whatever they wanted. But the app only ever got up to 8,000 weekly active users.

It was the end of the road for McKeon and Moodswing. “We just couldn't get there. We didn't have any more money,” he says. The business also started to lose McKeon’s attention. His co-founder’s, too.

With Moodswing in his rearview mirror, McKeon switched gears and started an organic superfood business called SupermixME. This time he took a more traditional route, ordering a batch of products for $5,000 on his credit card, packaging them at home, selling them, and buying another batch. But things were moving too slow for him.

So he took a step back and asked himself, “What am I good at?” He realized that, although Moodswing didn’t work out, he’d gained valuable insight into the world of social media marketing. He used that experience to start an agency, 7 Star Social, and quickly landed a few profitable clients.

At that point, McKeon was ready to take a break. “I decided I was going to travel for six months and work online,” he says. “I didn't want to focus on growing anything.”

His travels brought him to Central America, Europe, and—you guessed it—Bali. When McKeon returned, armed with a suitcase filled with coconut bowls, he started to scale his social media agency. At its peak, 7 Star Social was servicing more than 35 clients, each paying between $500 and $2,000 per month.

And in the background, Coconut Bowls was growing slowly. Eventually, McKeon decided he didn’t want to work for other people anymore, so he turned his sole focus to Coconut Bowls.

A Few Valuable Lessons

McKeon walked away from his experiences with Moodswing, SupermixME, and 7 Star Social with much more than the idea for Coconut Bowls. “I look at my journey like an apprenticeship,” he says, one that gave him a crash course in failure and success.

McKeon’s first major lesson from that time was around building a minimum viable product—a process he failed to follow when launching Moodswing. “It’s all about finding product-market fit before doing anything,” McKeon says.

That can be a hard thing to define, exactly, but when you’ve got it, people will start buying and enjoying your product organically. “It shouldn’t feel like a hard sell,” he says.

McKeon thought he had a good idea and spent all of his money without testing whether it was something people wanted. Looking back, he realized that he could've created a simple website or Facebook group and asked for feedback. “There are so many ways to test . It’s cheap to do and saves time and money in the long run,” McKeon says.

The second major lesson he learned was to avoid doing things too fast. “Take your time. Don't expect immediate success.”

With Moodswing, McKeon spent all his time getting those 100,000 users as fast as he could, but in reality, he says that businesses shouldn’t want to achieve that level of growth until they’re happy with their product.

“When our users tried , didn’t like it, and deleted it, they weren’t going to give us a second chance,” McKeon says. “Focus on product first, make sure people like it, then look to marketing.”

The Power of Focus and Community

McKeon’s biggest takeaway, though, was about focus. He had always given more attention to new ideas than the things he was most passionate about, despite the advice he’d heard countless times from others.

McKeon found that with every new business, there was always a new, more exciting idea that held more potential—hence his quick transition between Moodswing, SupermixME, and 7 Star Social. But he doesn’t recommend the same for other entrepreneurs.

In his opinion, when you focus on just one business, you learn more about the product and industry, and you invest more time into talking to your customers. Over time, McKeon has found that this only strengthens your passion, or develops a new one.

When it comes to Coconut Bowls, for example, McKeon has always been passionate about health, and has since become passionate about running a socially responsible business. “While I’ve always been mindful and conscious of sustainability, it’s never been a passion. But it’s been developed since I’ve fed off excitement and passion of our community.”

McKeon has derived valuable learnings from his community since creating Coconut Bowls three years ago, none more so than from a live strategy session with Quest Nutrition co-founder Tom Bilyeu.

The duo conducted the session on a live Foundr podcast, and McKeon walked away with some valuable lessons. “We were one year into Coconut Bowls and had some epic growth,” he recalls. “But we were chasing our tails. We didn't have a long-term strategy, a community strategy, or a brand strategy.

As an avid supporter of building community, Bilyeu helped McKeon learn the value of “supporting the people who support you.” That conversation helped shape the Coconut Bowls business and influenced a lot of McKeon’s current marketing and growth strategies.

One of his biggest marketing wins with Coconut Bowls has been building a customer base that markets for them. Through social media engagement, a thank-you card and follow-up email, McKeon and his team encourage customers to share on social media what they made in their bowl.

“We started with this strategy and are still using this call-to-action today,” McKeon says. “We’re very lucky that our customers do our marketing for us, and it’s basically been the driver for our growth.”

Another successful tactic has been creating something to do with the Coconut Bowls community. Along with his customers and other content creators, McKeon and his team came together to create a cookbook, Vegan Bowls for Vegan Souls. It’s had tens of thousands of  sales to date.

“We’ve had feedback from customers saying that it’s changed their lives,” McKeon said. “It’s not just a cookbook; it’s also built around having fun in the kitchen and being mindful about where your food comes from.”

Eventually, McKeon sees the Coconut Bowls brand expanding, which will allow him to expand the product line and its “made-by-nature” concept.

But McKeon and his team don’t only see Coconut Bowls as a brand—they view their business as a community and a collective of people who are all passionate about health, nature, and sustainability. “We share recipes with each other. We share inspiration and experiences,” McKeon says. “It really brings people together. … It almost comes back to the root of Moodswing—people who support each other.”

Key Takeaways

  • How a couple of failed ventures led to what he’s doing today
  • The story behind how Coconut Bowls came to be
  • McKeon’s history of testing multiple product ideas at one time
  • The key difference between Coconut Bowls and his other ventures
  • How he leveraged user-generated content and social media to grow
  • The biggest lessons he learned from his previous business, Moodswing
  • The power of focus to combat “shiny object syndrome”
  • Where Coconut Bowls is going next, particularly with product line expansion
  • How Coconut Bowls is fostering its community for growth
  • The Instagram strategies he’s used that he thinks will last long term
  • The challenges Coconut Bowls is facing, even with its success
Direct download: FP247_Jake_McKeon.mp3
Category:general -- posted at: 6:54pm AEST

Matthew was a guest of StartCon, Australia’s largest startup and growth conference. It was held at Randwick Racecourse in Sydney on Nov. 30 and Dec. 1.

When he was young, Matthew Brimer spent his days taking apart old electronics and dreaming of space exploration. A child of the Midwest, he was raised on the belief that hard work and passion could turn even the grandest dreams into realities.

As he grew older, he continued to hold tightly to this conviction, and, with the blood of two entrepreneurial parents pumping through his veins, Brimer knew he wouldn’t be stuck in his high school job selling ice cream forever.

Always that tinkering kid at heart, Brimer wanted to be an inventor. And he ultimately achieved his dream, but in a way he never would have imagined while growing up. He became an inventor of businesses, of communities, of experiences.

Co-founder of several brands to date, including dance party/lifestyle brand Daybreaker, VC firm The Fund, and most notably online education platform General Assembly—Brimer has developed an incredible knack for building passionate, engaged communities. Today, General Assembly has 20 campuses and more than 35,000 alumni, and Brimer serves as a mentor to members of the next generation of entrepreneurs through his role at The Fund, a New York City community of founders that he co-founded.

And it all began with an old piece of furniture and a lucky break on eBay.

Extracurricular Activities

In 2005, during Brimer’s freshman year at Yale, he and a few buddies noticed that some of the buildings were under renovation and the university was selling the contents in the process. After perusing the items for sale, they decided to buy an antique piece of furniture to see what they could get for it on eBay.

They took a couple photos of the item, posted it and hoped they could make a few extra bucks from the sale.

They had purchased the piece for $50. It sold for $1,000.

Minds blown, they rushed back to the buildings, bought more items and the college freshmen launched a small online business in the antique furniture space.

Having caught the entrepreneurial bug, Brimer wanted to try his hand at something a little bigger—something that required more technical skill.

In 2007, he and four other college students launched the website GoCrossCampus.com, an online game that turned college rivalries into a wildly popular online battle.

“We made every first time founder mistake in the book. It ended up a few years later becoming a total failure,” Brimer says. “But for a while we were the largest college gaming network in the country.”

He acknowledged that with too many founders and no way to generate new revenue, the project was doomed to fail, and GoCrossCampus shut the doors to its battleground in 2010. But while his first project may have ended, Brimer’s desire to create new things had only begun to grow.

He graduated, moved to New York and freelanced as a web designer while he spent all his free time immersing himself in the tech space. Although the city was bursting with brilliant entrepreneurs and new, exciting ideas, Brimer soon realized that bringing them together to interact and exchange those ideas was a challenge.

What if, he wondered, there was a physical building dedicated specifically to serving those in the tech space? What if there was a place where they could work alongside each other and learn while building meaningful community?

With that dream in mind, Brimer, Jake Schwartz, Adam Pritzker, and Brad Hargreaves co-founded General Assembly in early 2011.

Education for the 21st Century

General Assembly launched as a place for coworking, education, and community, under a single membership model, and this system worked well at first. But Brimer quickly noticed that, to better serve members, a greater emphasis had to be placed on building out the educational branch of the brand.

“There’s this huge skills gap between where traditional higher education leaves off and where the 21st century begins,” he says. “College education isn’t changing that much relatively speaking. But the 21st century—in terms of what employers are looking for, in terms of the talent they’re hiring, in terms of the skills you need to be effective in any industry today—that’s moving quickly.”

Brimer says that a traditional university education can leave graduates in tech fields woefully unprepared for the challenges ahead, and this was the gap he hoped General Assembly could fill. So they eliminated the coworking aspect of the business and doubled down on providing quality education from stellar instructors.

According to Brimer, these practical training programs on digital skills taught by actual practitioners currently working in the space were the most powerful, the most transformative thing they could provide. He wanted to equip students with valuable skills that enabled them to land a new job, upgrade their current position or pursue their passions in the digital economy.

Brimer and his cofounders threw themselves into the new phase of their business, raising more capital, expanding their curriculum both online and off, and launching a new branch that offers corporate training and assessments to large companies. They also built out a credentials program and launched a philanthropic wing designed to lift up those with talent and tenacity from all socioeconomic backgrounds.

With this grand expansion came a need to cement the trust consumers had in the brand.

From day one, Brimer placed a significant focus on delivering measurable outcomes at General Assembly, as a way to build firm trust in the brand. He wanted to answer the question, “What can I do after experiencing this product that I couldn’t do before,” with an unequivocal answer: get a job in tech.

It’s no secret that a college degree doesn’t necessarily guarantee a job after graduation, and this, Brimer feels, is a major issue right now for traditional colleges and universities.

“So here you have spent all this money, all this time getting a college degree and it doesn’t guarantee you a job anymore,” he says. “The outcomes are a little nebulous.”

Brimer and General Assembly wanted to provide something with more certainty. By supplying classes in coding, data, design, marketing, business, and career development, as taught by instructors with the most up-to-date information, Brimer feels that General Assembly fills the gap left by traditional education, more directly preparing students for a career in the industry.

The co-founders of General Assembly also made a concerted effort to attract instructors who were not only excellent in their fields, but also who cared deeply about passing their knowledge and skills on to others.

Brimer says that the best instructors at General Assembly are those who love giving back and empowering others, even if they’ve never had any teaching experience. Today, according to its website, there are more than 250 expert instructors. With an ever-evolving curriculum, and continued expansion, General Assembly is bound to continue making a splash in the tech world.

Brimer began as a cofounder, later transitioned into a part-time position, and this summer he stepped into a new role as an external “evangelist for the company,” when the Adecco Group acquired the brand for $412 million.

While his day-to-day work at General Assembly may have come to a close, he is still extremely passionate about what he was able to accomplish during his time there, and is excited to see what new frontiers they are able to conquer in the years to come.

Brimer is no longer the kid tinkering with household electronics in Missouri, but with free time to concentrate on new ventures, he’s still dreaming big.

“It would be a hilarious thing,” he says, “to explain to my 6-year-old or 8-year-old self what it is that I am, have been, and will be.”

4 Ways To Establish Trust in Your Brand

When competing with major colleges and established universities, the way Matthew Brimer was when he co-founded General Assembly, it is absolutely essential to establish deep trust in the brand as quickly as possible. But all brands, not just those in the education space, have to find a way to build a bridge of trust between company and consumer to become successful. These are four of Brimer’s best tips on how to establish trust for your brand.

1. Deliver Measurable Outcomes

Brimer says that one of the best possible ways to build trust in your brand is to deliver outcomes that are clear and measurable. To decide what that outcome is, he recommends asking, “What is possible for a customer after engaging with the brand or product that would have been completely unattainable before?” By nailing down the measurable outcome and then delivering it, it turns word-of-mouth references into undeniable, tangible results.

2. Celebrate Success Stories

Once you’ve determined what “measurable success” for your brand looks like, it’s time to celebrate those who have achieved it! Brimer says that even prestigious colleges only gained the clout they have because of the success of their alumni. In the same way, the successes of others who have interacted with your product reflect back onto your brand.

3. Establish and Adhere to Core Values

By crafting a definitive and concrete set of core values you can stand by, customers learn what they should expect from your products and services. Brimer says that by delivering on those values, you can develop an invaluable level of trust with consumers that can only come from maintaining integrity.

4. Stay Humble

Brimer says that, all too often, as companies grow larger, so do the egos of the people at the top, preventing them from quickly acknowledging mistakes and accepting feedback with humility.

“The more human of a relationship you can have as a company with your users, the more trust you’re going to have,” he says. “Trust goes away when it’s a faceless brand—a faceless corporate entity—interacting with live humans on the other side. That’s when things go downhill.”

Key Takeaways

  • Why we need to stop asking children what they want to be when they grow up
  • How buying an antique piece of furniture at Yale sparked his first ecommerce business
  • How he and his friends built the largest college gaming network in the country
  • How General Assembly got started
  • The philanthropic arm of General Assembly
  • GA’s $412.5 million acquisition by Adecco Group
  • What it’s like post-acquisition and his involvement in General Assembly
  • GA’s hybrid approach of both online and in-person classes
  • Why, from an employer perspective, General Assembly is a great source for talent acquisition
  • How GA built trust in their brand in the early days
  • What they look for in a General Assembly instructor
Direct download: FP246_Matthew_Brimer.mp3
Category:general -- posted at: 2:43am AEST

How Aidan Clarke grew global brands 2XU and Saint by prioritizing product.

In a market saturated with quick, cheap fashion, building a high-quality, global apparel empire was not an easy feat—but in 13 short years, Aidan Clarke paved a way.

It took a lot of dedication, but Clarke was determined to make a game-changing clothing company. Clarke decided early on that he doesn’t care about how his apparel looks, as much as he cares about its quality, and that commitment has paid off in a big way.

His first and primary brand, 2XU, is based on the idea of making high-performance athletic wear, with a focus on unique, custom-engineered materials first. This approach and the resulting success would lead him to his second brand, Saint, which takes that same emphasis on materials and applies it to safety gear for motorcyclists.

The funny thing is, by focusing on high-end users and materials, Clarke’s companies ended up creating products that have much broader appeal than the initial target audiences, branching out into athleisure, workwear, and potentially even streetwear for skateboarders.

Through these two brands, Clarke has found a way to sell products that look good and perform well—and outfit consumers in over 60 countries.

From Door-to-Door Sales to 2 Worldwide Brands

Clarke got his first taste of the clothing business at just 18. As he was preparing for a school dance, he took a second glance at the neckties he and his friends were buying. A young entrepreneur’s mind started crunching numbers and realized that the fabric only cost $30 per meter, and each meter could make up to seven ties. Yet here he was shelling out almost $100 to purchase just one. “I thought, ‘Hang on, there’s a business here,’” Clarke recalls.

He decided to start making his own ties and selling them door-to-door to businesses in his home of Auckland, New Zealand.

Clarke’s entrepreneurial path didn’t continue in a perfectly linear fashion, a common theme we see among emerging founders. After graduation, he went to college and started a corporate career. His pushed his entrepreneurial passions to the back of his mind, but not for long.

“I ironically landed back in clothing,” Clarke says. “I’d grown up around seamstresses and saw the value-add of clothing.”

Clarke started his first apparel brand 2XU in Melbourne in 2005 and moved his family there soon after. He spent the following five years on a plane building 2XU into a multinational business reaching more than 60 countries.

Why Melbourne? Clarke and his team had received a significant amount of startup funding, and their investor was based in Melbourne. The Australian market for 2XU was also better than in New Zealand. “We spotted an opportunity. New Zealand had lots of local sports brands, but Australia ironically didn't,” Clarke says. “We wanted to take on the big boys.”

2XU started with audacious goals. Clarke and his team wanted 2XU to be uniquely performance-focused, so they spent the entire first year developing fabrics for their apparel, before creating their product. “You can either buy fabric or focus on quality,” Clarke says. “We said, ‘Hey, we want to change the fabric.’”

With millions in seed capital, they were able to spend ample time and resources on fabric development. Eventually, their warehouse became so full that they had to start selling their product.

Clarke and his team did wholesale and direct sales at the same time. While most clothing brands avoid direct sales so as to not compete with wholesalers, 2XU opened its first retail store to prove they could sell premium, expensive sportswear in Australia. “Selling at our own store motivated retailers to accept products,” Clarke says. “Having our own hero shop drove demand for wholesale.”

The team also visited both retail and special sports stores. Selling next to well-established international brands was difficult, but they pressed on. Their first major sale was to a now-closed triathlon store that purchased the entire 2XU line for over $3,500.

Another significant sale Clarke remembers was to Rebel Sport, a major retail chain in Australia and New Zealand. “Needless to say, we had a few drinks that night,” he says, laughing.

Clarke’s next step for expanding 2XU was finding ambassadors and distributors. But that wasn’t always easy. “Trusting someone with your brand is like a glorified babysitter,” Clarke says. “You have to find someone with the same passion to sell your story.”

He found that the best thing about distribution is how it taps into local knowledge and expertise. The 2XU team worked hard to find passionate brand ambassadors and people to accurately represent 2XU brand in each country. In doing so, they found mostly nontraditional distributors: athletes.

“It was a big risk, but passion is the right of way,” Clarke says. Over time, some distributors scaled with 2XU operations, and some were replaced by commercial operations.

In the following years, 2XU celebrated two major equity events. In 2011, a local company bought 30 percent of the company. Next, the capital arm of Louis Vuitton discovered the brand and bought in at 40 percent, a significant valuation for 2XU.

Since then, 2XU has scaled up and hired corporate CEOs to run the company. “The challenge we face, though, is how to still act like a small business…an underdog,” Clarke says. “We used to say, ‘By athletes, for athletes,’ but we can’t say that anymore.”

But at the end of the day, the 2XU product is “still sensational.” It’s been well-received at the professional and Olympics level and is very much considered a premium brand. In the United States, it’s worn by the NBA, NFL, and even Navy Seals.

In other places, 2XU apparel has become an athleisure staple. “You don’t have to be a world champion to still want quality,” Clarke says.

After getting 2XU settled, Clarke pulled back and spent a “non-executive year” focused on himself and his health. One day, while riding bikes with his co-founder, he came up with what would become his next big idea—a new form of safety apparel for motorcyclists.

The idea sounded simple, but as the duo dove into R&D, they realized creating this type of product would require a significant commitment. “It cost us a couple million dollars after a couple years,” Clarke says. This effort would go on to become Saint, Clarke’s second global clothing brand.

Their goal was to create a single-layer safety product—ensuring a flexible, comfortable riding experience—that wouldn’t rip or tear if someone fell off their motorcycle. The global “slide time” standard for the fabric on these products (which defines the amount of time that a fabric should withstand sliding across an abrasive surface, such as pavement, before it tears) is four seconds, and they’re routinely tested in facilities equipped with spinning disks of sandpaper that replicate sliding on the street.

Their first fabric lasted 3.67 seconds before ripping—just short of the standard but still much longer than any other single-layer fabric. After continual development, Clarke’s fabric now lasts almost six seconds.

This single idea helped Clarke and his brand break into work clothes and other tough lifestyle applications.

They’ve since patented their super-durable fabric, which involves a unique material spun into the yarn. “As for workwear, no one can do what we’ve done,” Clarke says. “It’s nice to have the IP protection.”

Premium Product > Price

Both of Clarke’s businesses, 2XU and Saint, lead with a premium product line. And there’s a reason for that. “People often lead with price,” Clarke says. “That’s a lazy way to sell. Product is king.”

Some clothing retailers also find themselves tempted to sell their products relying on aesthetics alone, but not Clarke. “Rather than being a fashion brand, I’d rather be an authentic motorcycle brand with tough products…that also look good,” he says about Saint.

Instead of encouraging people to “buy because it's cool," he always wants the dialogue to be, "buy because it's going to protect you."

Through both ventures, Clarke aimed to develop a high-quality product, as he believes that is his “greatest value proposition and strong positioning” against competitors. He believes that “if you have an amazing product, you're not selling—you're just recommending.”

Of course, selling your product is much easier when other people endorse it. In Clarke’s eyes, strong brands start with a great product or service, get their margins right so they’re profitable, and then create demand. “People think there’s a complexity to business, but there’s also a simplicity,” Clarke says.

How can you create this demand? Clarke relates it to a “chicken and egg” situation. If you create demand before you’re ready to supply and distribute your product, you risk wasting resources because you’re essentially creating demand for competitors. On the other hand, if you develop and supply your product before the demand is there, you risk wasting resources on product that never brings in revenue.

To build demand for your product, Clarke recommends doing so authentically. He and his team often attended sports events and spread the word about 2XU to one person at a time. Those early adopters and advocates would then tell friends. “It’s like a grassroots movement,” Clarke says.

By targeting their market and talking to those who are passionate about what they do, they got authentically involved with communities and built trust in 2XU from the ground up. The same can be done through social communities.

Clarke claims that social media, in fact, is a lot more directed. “The ability to target and generate demand is more focused than ever,” he says. “That’s what’s exciting about today.”

Clarke and his team have made other exciting changes over the years. When they started 2XU, they only had an informational website. They didn’t want to compete with wholesalers through ecommerce sales. Now, ecommerce is one of their biggest and most important channels.

Every business’s website is now the flagship store, at least to begin with, Clarke says. People form their judgments about your products very quickly, and you’ve got to have your website synchronized with the products you’re offering in the real world.

The Future of Saint and 2XU

Looking ahead, Clarke is excited for the futures of both 2XU and Saint. The brands are at different stages, but they both sell high-quality product and are both in growth mode, as Clarke calls it. His primary growth measure isn’t from a focus on sales numbers—it’s from a focus on communities.

“Saint is a rocketship about to take off,” Clarke says. “It’s five times tougher than standard workwear.” The brand has even had inquiries about street fashion and safety gear for skateboarders and other action sports.

As for 2XU, Clarke says that seeing more and more people discover the brand is exciting.

To other entrepreneurs, Clarke encourages “passion, tenacity, resilience, and a belief in yourself.” He highly encourages those in the clothing business to focus on quality. “Cheap fashion is too hard a place to play,” he says. “It’s not unique enough.”

When you have a unique space and unique selling proposition, you have a better chance of selling your product—or having it sell itself. Clarke is also adamant about using brand ambassadors to create a movement and conversation around your products or services.

“The tough thing about clothing is that scalability is hard,” Clarke says. Small businesses often buy too much stock, but Clarke encourages the opposite—pay more to make fewer units and sell them up.

In his opinion, it’s better to scale yourself up. Too much stock can put clothing brands in a hard place. Unlike the whiskey business, apparel product is worth less and less every year.

At the end of the day, Clarke reminds brands and entrepreneurs to prepare themselves for the road ahead. “It’s a tough game,” he says. “Just believe in yourself, be resilient, and keep pushing.”

Key Takeaways

  • His first job as a teenager selling ties door-to-door
  • Why he left his corporate career to start a business in 2005
  • All the leg work that went into developing a premium performance clothing brand
  • How the internet affected his business
  • On raising capital and how he used the funds
  • How he and his cofounder came up with the idea for the world’s strongest single-layer denim for motorcyclists
  • Why he focuses heavily on performance, not fashion
  • Advice for fellow entrepreneurs entering the apparel space
Direct download: FP245_Aidan_Clarke.mp3
Category:general -- posted at: 8:12am AEST

At 16, he began building websites.

At 18, he became a regular at the gym.

At 20, he started sewing and screen-printing workout apparel in his garage.

By 26, when most adults are only on the cusps of their careers, Ben Francis had already launched a viral gym clothing line, served as its CEO, and stepped down in favor of a more creative role in the wildly successful company.

Today, the Gymshark founder works alongside 190 staff, including the high school buddies who partnered with him to launch the brand, bringing this unmistakable apparel line to customers in more than 130 countries.

And while it seems like this former pizza delivery boy magically rocketed to entrepreneurial stardom overnight (OK, he sort of did), his success can be traced back to a dedication to community building and an innate understanding of social media influencer marketing, long before it was a thing.

But it all started with amateur website building, a love for fitness, and a whole lot of YouTube.

Years before he was a CEO, Francis longed to make a name for himself in the fitness space. But the closest thing he had to investors were people calling to order a pizza, so establishing a clothing brand couldn’t have seemed less attainable.

Not to be discouraged by limited funds, Francis and his high school friends began a workout supplement drop-shipping business and quickly realized that there was an opening in the workout apparel market.

Dressing a bodybuilder and a skinny, weight-lifting newbie are two totally different jobs, especially when you’re going for form-hugging designs fit for a workout. Francis and friends, however, believed they could create a line that would be sleek, modern, and appealing to gymgoers of any body type.

“And so,” Francis says, “I bought a screen printer and a sewing machine and started to make the clothes by hand.”

The designs were an overnight sensation.

“People were seeing the clothes, and they were so iconic and unique, that it sort of started to spread like wildfire,” Francis says.

But the real secret sauce was the passion he and his friends had for YouTube.

Influencing Influencers

In the early 2010s, YouTube was rising fast. People passionate about everything from movies to knitting, gaming to, yes, fitness, were creating video content and building communities around shared interests.

Francis and his friends were among the millions who joined online followings based on their hobbies, but stuck around for the personalities in the videos. One such fitness YouTuber who held their attention was Lex Griffin of Lex Fitness, whose channel now has over 440,000 followers. Another was Chris Lavado, whose channel has 65,000 subscribers today.

Realizing they could leverage the followings of others, Francis and his friends pursued a business strategy that put them on the map, and that they still use today.

They sent samples to Griffin, Lavado and other fitness YouTubers they admired, and hoped for a stamp of approval—and a video to prove it.

While the term “influencer marketing” has only recently entered into the pop consciousness, the principle has been around as long as marketing. Attracting the favor of a wealthy or influential person by showering them in gifts that define a brand is as a classic move, a point Francis illustrated by sharing some history of his hometown of Birmingham, UK.

For hundreds of years, the Jewellery Quarter in central Birmingham has been a hub for opulent accessories. Many jewelers open businesses in the Quarter, and the competition is fierce. But historically, there was one way to ensure that a brand’s name would be on everyone’s lips: become the first choice of royalty.

Frances explained that this principle of vying for favor worked then and still works now.

“They would provide a bunch of free jewelry to royalty so that people would associate that jewelry with the royalty and then hopefully back to the brand and go buy it,” he says. “It’s no different to what influencer marketing is nowadays.”

“I think it’s worked forever, and as far as I’m aware, I think it’ll always work.”

And so, like an ambitious jeweler in the 1700s, Francis sent off his product to curry favor with those who had the power to make his brand catch fire. And it worked.

“They absolutely loved it, and they’re still with us today,” he says. “That started, I guess, what you’d now call an influencer market for us.”

Today, Francis continues to leverage the audiences of athletes through an ambassador program that now includes such personalities as bodybuilder Matt Ogus, lifestyle and fitness vlogger Nikki Blackketter, and weightlifter Whitney Simmons.

Because of Francis’s early success in harnessing an influencer-generated market, Gymshark has never relied on investors for capital.

“We never needed investment,” he says. “So why complicate things?”

Francis recognizes, though, that there was also a component of luck at work. He entered the world of social media influencer marketing when it was still a young idea, and those with followings weren’t inundated daily with products in search of a boost.

“I do think it’s a hell of a lot more difficult than when we first started,” he admits. “It’s a completely different place now.”

But if he were to launch a new business today, a venture he says would be a fun challenge with the vastly changed online landscape, he knows exactly where he would focus his attention.

“Product is king at the end of the day,” he says. “I would focus on creating an absolutely brilliant and a gorgeous product because I think from that, it’s like a snowball effect.”

He believes that by designing a remarkable, unique, and stunning product, anyone can rise above the cacophony online.

“If you get someone’s attention with a genuinely brilliant product, people will wear it, people will use it, and people will talk about it.”

But for now, Francis is focused on the current community he has built.

Fostering Community

Growing up, Francis loved attending events and expos in his hometown and dreamed of the day he would not only participate, but host his own. His belief in the power of person-to-person advertising was instilled in him as a young expo attendee and has continued to stick with him into his mid-20s.

“Even though the world is becoming ever more online, and 99.9 percent of what we do is online, there is always space for that human connection, and I think that’s really, really important, and it’s a real important thing to Gymshark.”

So in Gymshark’s very early days, when an opportunity to participate in an expo presented itself, Francis says that nothing could have stopped him from finding a way to join.

When he reached out to one of the coordinators to find out how much it would cost to get Gymshark a spot, he was quoted a price far more than they were able to afford at the time. But as Francis likes to emphasize, he plans hyper long-term and hyper short-term and lets the rest in between work itself out.

“This was 12 months in advance of the show, and I was like, ‘Right, yeah. We’ll have it. We’ll get that, and we’ll just sort of make it work,’” he says. “It was our dream to go to an event like that.”

And go they did, beginning a successful string of expo appearances that were initially in the UK, but rapidly branched out internationally until, eventually, they stopped going to expos and started hosting them.

“I literally think, ‘Let’s make the product that I love,’ and by default, I think other people would love, and let’s create the event that I would love to go to, and by default, I think that other people would really enjoy to go,” he says.

He also says that when it comes to events, making a profit is not the immediate goal. Just like the early days spent working a screen printer in a garage, Francis’s motivation is simply a desire to create something awesome. Something he loves.

“We just sort of think, ‘Right, what would we really, really love to go to? Let’s go make it happen. Let’s forget about the profit and loss at that point for that event. Let’s just go make something really, really cool.’”

But rapidly gaining a dedicated following, especially when selling a physical product, has its challenges. Francis says that Gymshark’s biggest challenge at the moment is keeping up with demand, especially when YouTube influencers or expo attendees are hyping them.

“We definitely made massive improvements in the last six to 12 months, but there’s still a long, long way to go,” he says.

Part of the Gymshark’s effort to keep up with growth meant Francis himself coming to terms with his right role within the company. As CEO, he quickly came to realize that he was in a position that he was not suited to fill.

“We were growing so fast, and the role of the CEO is very people oriented,” he says. “I’m very much an introverted person. I’m much more suited, and work better, in either a very small team or on my own where I can really dive into a project, focus on that thing and make it really special.

“As we were growing bigger, it became more and more evident to me that the CEO really needs to be a lot more of a strategist and a lot more of a people person than what I am.”

So Francis made the difficult decision that it would be best for him to step into the role of Chief Brand Officer instead. But the transfer of CEO power didn’t just happen overnight, which he feels helped build trust among himself and the staff. It happened over a period of about a year as Steve Hewitt, the current CEO, slowly took on more and more until he finally stepped fully into the role.

Of course, passing leadership on to someone else is always a humbling and challenging process, but it’s one that Francis has come to embrace as an opportunity to become more fully himself.

“I think it’s very important to be self-aware and to understand what you are good at what you’re not good at,” he says. “I’m a massive, massive believer of that.”

Today, Francis has the freedom to focus on product and vision, gathering small teams together to pursue new designs and strategies for the future.

So what’s next for Gymshark?

Francis says that they are always pursuing innovation and are currently in the process of designing new fabrics, as well as looking to branch out of the strictly apparel space.

And in an effort to keep avid followers and fans of the brand up to date, Francis has recently launched a vlog series of his own, giving a behind-the-scenes glimpse into Gymshark and into his world.

In the 10 years since Francis started creating amateur websites from home, his world has utterly transformed. But many things remain the same: a love of fitness, a passion for social media, and an unbreakable bond with his high school friends turned business partners.

The Gymshark brand invites each customer and avid follower to “Be a visionary.” And Francis is asking nothing of his followers that he hasn’t done himself. After all, where would Gymshark be without an enthusiastic pizza delivery boy who had the vision to buy a screen printer, and the boldness to show the world what he could create?

Ben Francis’s Tips for Success

Launching a brand new product on your own or starting your own business is never easy. No matter how large or small the venture, it requires vision, courage, and determination. But Ben Francis believes that there are three things any beginning entrepreneur can do to improve their chances of success.

  1. Surround Yourself With Support

Francis says he was once asked to share a story about a time when he was told that he couldn’t do something. He paused to think, but his mind came up blank. “That never happened, because I never surrounded myself with those people,” he says. Starting a business is a challenge, but with the support of people who inspire and motivate you, Francis believes that mountains are reduced back into molehills.

  1. Embrace Self-Awareness

Being honest with yourself and clear about who you truly are is one of Francis’s crucial steps to success. “Self-awareness is key,” he says. “I think it’s massive. You can only kid yourself for so long.” Without the ability to identify which skills you have in abundance and which you lack, you’ll be unable to build a team around you that complements your abilities and improves upon them.

  1. Play to Your Strengths

Once you’ve identified your strengths and weaknesses, Francis insists on the importance of allowing them to guide your decisions. “Could I do an operational…role for a little bit? Absolutely. I’m reasonably intelligent. I could manage,” he says. “But would I be able to do it for a sustained period really, really well? Absolutely not.”

Rather than forcing yourself to be something you’re not, Francis encourages all entrepreneurs to be honest about their strengths and find ways to play to them, even if that means relinquishing, as he did, the title of CEO.


Key Takeaways

  • How interests in building websites, going to the gym, and sewing and screen printing combined to help him launch a wildly successful business
  • How connecting with YouTube influencers helped Gymshark take off
  • On using events to build community
  • The biggest challenge Gymshark faces right now
  • Why Ben traded the role of CEO for Chief Brand Officer
  • On separating personal brand from company brand
  • Why Gymshark has never taken investments
  • What he would do if he were to start a totally new ecommerce brand today
  • What his personal life is like now that he’s a successful business owner
  • What’s next for Gymshark
Direct download: FP244_Ben_Francis.mp3
Category:general -- posted at: 1:33am AEST

When Kim Perell landed a job at a hot new internet startup in 1998, she thought she had hit the jackpot.

She loved her job and learned a lot, but when the dot-com bubble burst, the startup went bankrupt. What was once a dream company that she recruited many friends to join had become a nightmare when she had to lay off those friends, and then lose her own job too.

“In an instant, someone pushed delete on my life, and my future, my identity,” she says. “My multimillion-dollar stock went up in flames and was worth nothing.”

Perell turned to the one person she thought might give her a loan to start over: her grandmother. And sure enough, even though Nanny didn’t know what the internet was, she loaned her granddaughter $10,000, which Perell spent on a computer, a GoDaddy account for a website, and a one-way ticket to Hawaii to live with her boyfriend rent-free.

Perell launched Frontline Direct, a digital marketing company pairing brands with online advertising. Scarred from the bankruptcy, she was eager to work for herself and get back to basics, which meant focusing on profitability and growth. In 2008, Frontline Direct was acquired for $30 million, and again by Amobee, where Perell now serves as CEO.

Through all the ups and downs, Perell has learned many lessons, which she passes on to fellow entrepreneurs in her latest book, The Execution Factor: The One Skill That Drives Success. After investing in over 70 startups, she noticed one thing stood out in particular for those who succeeded: they focused on execution more than anyone else did.

For her, writing The Execution Factor was a way to pay it forward.

“If I could shortcut the system and share, based on my own experiences, what is important as an entrepreneur, that was really meaningful to me,” Perell says. “And I just felt like my grandma made a bet on me, and I was going to pay that back.”

In addition to the book, she established The Execution Factor Fund to provide seed stage funding to execution-driven startups. One hundred percent of the proceeds from her book are contributed to this fund.

(And in case you were wondering: Perell paid back the loan to her grandma.)

Key Takeaways

  • The rock bottom moment when the internet startup she worked for went bankrupt in the dot-com bubble burst
  • What she did with a $10,000 loan from her grandmother
  • Founding Frontline Direct, a digital marketing company, while living rent-free in Hawaii
  • Frontline Direct’s multimillion-dollar acquisition
  • Her new book, The Execution Factor
  • Why vision, though important, is not enough
  • The five traits you need to master execution
  • How to attract and retain great talent
  • What she looks for when investing in businesses
  • Thoughts on branding versus direct response
  • On if she felt a loss of identity after selling her business
Direct download: FP243_Kim_Perell.mp3
Category:general -- posted at: 2:33am AEST

Tony Fernandes has worn many hats over the course of his decades-long career. And if the Group CEO of AirAsia (and former host of The Apprentice Asia) ever finds himself dissatisfied with a signature look, he’ll just invent a new one.

“You have to keep renewing yourself,” Fernandes says. “You’re only as good as tomorrow.”

That philosophy undergirds Fernandes’s entire career trajectory. Before starting what is now one of the world’s most successful budget airlines, Fernandes was an accountant, working briefly for the likes of Virgin Atlantic and Virgin Communications. He then reinvented himself within the music business, where he served as a Warner Music executive in Malaysia.

Fernandes’s latest reinvention is his biggest, and most complex. He’s the co-founder and Chairman of Tune Group, a conglomerate of hotel, automotive, financial services, education, media, and telecommunications industries subsidiaries. And he sits at the helm of AirAsia, a budget, no-frills airline that has revolutionized travel in Southeast Asia. After purchasing the then-bankrupt airline for a shocking 24 U.S. cents, Fernandes has grown the brand to a net worth of more than $1.5 billion. AirAsia is now the fourth-largest airline in Asia, behind only the big Chinese carriers (in 2017, AirAsia flew over 90 million passengers), and it recently embarked on an ambitious program that will see the airline transform itself into a travel technology company.

To hear Fernandes tell it, two primary factors differentiate AirAsia from other companies. For starters, the company has always embraced digitization. And secondly, the organization is built on inclusivity and creating a fantastic work culture. Here’s how Fernandes has leveraged those strengths to build a company that no one thought possible.

Pursuing a Childhood Dream

In 2001, during Fernandes’s more than decade-long stint in the music business, digital advancements began to threaten deeply entrenched industry norms. Fernandes spotted an opportunity, but his colleagues weren’t so keen on the digital revolution.

“Napster had come along and Spotify was just starting, and I thought, ‘Wow, this is super exciting for the music industry,’” Fernandes says. “But I was a lone voice.”

No one at Warner Music or Time Warner Inc. (where Fernandes was working at the time) thought it was a good idea. “They thought the internet would destroy music,” Fernandes says. “My premise was that we can’t hold technology back and that this was a fantastic distribution model to create more revenue.”

But his vision didn’t gain traction, and when Time Warner merged with AOL, he decided to bid adieu to his music industry career.

He was sitting in a bar in London, trying to figure out what to do next with his life, when he saw mention of the budget airline easyJet on the pub’s TV. Fernandes instantly recalled his childhood love of planes.

“Always from a very young age, I’d told my dad, ‘I’m gonna own an airline one day,’” he says. “That’s one of those things you say, but you’re not entirely sure you’re gonna do. But I always said it. And so I thought, ‘Well, this could be the time.’”

It might seem like a bold move for a music industry exec to presume he could run an airline, but Fernandes was motivated by one simple premise: YOLO.

“I thought… ‘You only live once,’” he says. “If I fail, I fail. It’s okay. I’ll go get a job doing something else. But I don’t want to sit there at 55 and say, ‘I wish I did it.’”

Fernandes’s idea gained further traction after he started studying the models of low-cost airlines such as RyanAir. (RyanAir’s then-Director of Group Operations would later become a shareholder of Fernandes’s airline.) Inspired by what he refers to as an “amazing concept,” Fernandes gathered up some partners and returned to Malaysia for a meeting with the Prime Minister.

The Prime Minister agreed to let Fernandes and his partners into the airline industry, but only if they purchased an existing airline. As a result of some devastating circumstances, there were a lot of opportunities. Fernandes was looking to purchase an airline around the time of the September 11, 2001 terrorist attacks, which had sent the industry reeling. He ended up purchasing AirAsia, a Malaysian government-owned airline that was $11 million in debt, for a grand total of 24 U.S. cents.

Driving Growth

After purchasing AirAsia, Fernandes knew he had to move fast. “It was very clear to me once we started moving that…I was going to put the foot to the accelerator because there were some big around me,” Fernandes says. “When you have something, scaling up is important.”

Luckily, Fernandes spotted multiple avenues for growth.

For starters, he knew that at the time he acquired AirAsia, only 6 percent of Malaysians flew. If he could capture even a portion of the other 94 percent, he’d be in business. What’s more, he was willing to fly to places that most airlines didn’t go. “A lot of our growth has come from destinations that no one did before,” he says.

But perhaps AirAsia’s biggest differentiator was its use of the internet at a time when, globally, many still weren’t online. “Back in 2001, most people didn’t even have internet yet,” Fernandes says. “But I said, ‘Trust me, when I put a fare at 2  dollars, people are going to find their way to the internet.’” Since then, AirAsia has been religious about tracking and keeping data. So when huge brands started to embrace digitization many years later, they were already ahead of the game.

Still, Fernandes knew he was at a disadvantage, due to his lack of industry knowledge, so he accelerated his learning to ensure he could continue AirAsia’s rapid growth. He sat down with engineers, pilots, simulators, and cabin crews; learned how to change a wheel; and generally threw himself into understanding the intricate workings of planes and airlines. “I was a sponge,” Fernandes says. “I took everything in.”

A strong focus on innovation, learning, and growth helped Fernandes and his team make up for what they lacked in capital.

“Let’s be real, three guys from the music business coming in to start an airline is not the most convincing business ,” Fernandes says. “No bank gave me a cup of coffee. Did we want capital? Of course. But we didn’t have it. But again…we built a massive airline with very little capital.”

In fact, AirAsia only raised one round—$30 million around year three—before launching its initial public offering (IPO). “I’m old-fashioned in that aspect,” Fernandes says. “I believe in cash. I believe in making some profit. If you have a model where you can make money, make money. And of course reinvest some of that money, which we did.”

Much of that money went into flying to new places. “The product was going places that no one else wanted to go,” Fernandes says. “We couldn’t stand still… kept adding routes and new destinations.”

While the airline continues to add new destinations, today it’s equally focused on developing a multi-pronged digital strategy. The organization is digitizing all of its processes to enhance efficiency and the customer experience. It’s also attempting to create a comprehensive travel ecosystem that will enable users to book train tickets, purchase concert or other event tickets, use financial services, and so on, all from one central hub.

“We’re using and building platforms that will provide more value to my customers…and it’s an exciting vision,” Fernandes says. “There’s a huge potential if we can execute well.”

That execution hinges on a top-notch team working cohesively and effectively. Luckily, Fernandes has been building that since day one.

Building a Dynamite Culture

“Culture is, I think, the most important thing in the success of AirAsia,” Fernandes says.

Fundamental to that culture is a bedrock of transparency and trust—even among 24,000 staff. “It is by complete choice that we’re open plan,” Fernandes says. “When you have an office, you have all these invisible walls. … So one day I just came in and smashed all the offices. I brought a contractor in and just tore them all down. And we’ve been open-plan ever since.”

In keeping with the open office concept, AirAsia also employs a fairly flat organizational structure. “I like to think we utilize everyone’s brain,” Fernandes says. “We put everyone…in the same building. Everyone eats in the same place, everyone goes to the same gym. I want people who believe they can do a lot more and grow in this company.”

This spirit of inclusivity extends to diversity. “We embrace diversity,” Fernandes says. “We don’t care what race, creed, color, sexual orientation you are. And I think that’s a strength. Because that gives us a huge diversity in our workplace, and a huge ability to attract great talent and great ideas. … I wanna have a fantastic, multi-ethnic, diverse company, and I think we’re not far from that.”

Of course, when you’re dealing with a team of 24,000 people, it’s easy for bureaucracy to rear its ugly head. “We got big, and politics and bureaucracy creep in,” Fernandes says. “But it’s not something I’m gonna run away from. I confront it because bureaucracy and politics is the cancer of any organization”

One strategy the team uses to confront bureaucracy is simply having fun. “I think too many business leaders take life too seriously,” Fernandes says. “Too many entrepreneurs get too stressed. Have a balance. You don’t have to work 18 hours a day. Make sure you give time to your family and your kids and your friends.”

In Fernandes’s view, this juggling act is worth it in pursuit of building a great team. “You’ve gotta surround yourself with good people, and you’ve gotta be prepared to listen,” he says. “Too many founder CEOs think they know it all. … You can have all the ideas you want in the world, but the execution is what it’s about, and you need a good team.”

Luckily, developing a great team has always been fundamental to Fernandes’s vision for AirAsia.

“My vision was to create a great place to work—a fair place to work, where it didn’t matter whether you…had money or a great education, but if you had a great brain and you had the will and belief, you could achieve anything in this airline,” he says. “To turn a raw diamond into a diamond—and we have so many of those. … If you really push me, it’s allowing a lot of my staff to live their dreams—that would be something I’d be most proud about.”

That spirit of affirmation and inclusivity extends from AirAsia’s team members to its customers. In spite of the many ways that Fernandes and his airline have reinvented themselves over the years, the company’s slogan has remained the same since Fernandes first developed his vision all those years ago: Now everyone can fly.

5 Mini-Lessons in Entrepreneurship from Tony Fernandes

  1. Spend Money on Branding and PR

“Great ideas are great ideas…only people know about them,” Fernandes says. “Too many businesses don’t spend enough on branding and marketing. Keep a budget for that.”

  1. Always Be Reinventing

“The world is littered with products that didn’t reinvent themselves,” Fernandes says. For example, he references Nokia. “Who believe a world without Nokia phones? They were it.” Today, of course, the phone landscape is very different.

  1. Balance Focus With Innovation.

“You have to live within your means and live within your resources,” Fernandes concedes. “But you also can’t stand still. It’s a balance. But life is a balance. Everything you do is a balance.”

  1. Don’t Worry so Much About Failure

“Failure doesn’t worry me, because I’d rather fail than not try at all,” Fernandes says. “Many people are too worried about failing, so they don’t do anything. I’ve had many failures… I don’t have any regrets, because if I didn’t try I didn’t know.”

  1. Go With Your Gut

“You can do all the marketing research you want,” Fernandes says. “You just gotta go with your heart sometimes and do it.”

Key Takeaways

  • Tony’s background in the music industry and how he wound up interested in airlines
  • The wild story behind how he purchased AirAsia for 30 Australian cents
  • The fundamental growth strategies he used on AirAsia
  • His thoughts on funding
  • AirAsia’s digital strategy
  • On expanding your product line and trusting your gut
  • AirAsia’s culture and why he thinks it’s the single most important factor in their success
  • His advice on building a founding team
  • How he came to host The Apprentice Asia
  • His thoughts on personal branding as a CEO or founder
  • How he views failure
Direct download: FP242_Tony_Fernandes.mp3
Category:general -- posted at: 11:25am AEST

Life in the Fast Lane

From washing cars, to selling them, to building businesses, Sendlane CEO Jimmy Kim credits focus as the key to his rise to the top.

Like many children of Asian-American immigrants, Jimmy Kim knew his parents had high expectations for him. When he was a child, his mom told him that he needed to become a doctor because that would make him the most money.

“I don’t wanna be a doctor,” the young Kim replied. “I’m gonna make more money than a doctor.”

Fast forward to 2018, and Kim is making good on that promise to his parents, as an entrepreneur working in online marketing.

He’s built and sold multiple companies, and now sits at the helm of the fast-growing email marketing software Sendlane. The bootstrapped company employs 25 full-time employees in its newly remodeled, 6,000-square-foot office in San Diego. As of May, Sendlane had already more than doubled its revenue over 2017 and was on track to triple or even quadruple that number by the end of the year.

How did he get here? Kim attributes his success to one thing: focus.

From Washing Cars to Building Businesses

At 15, Kim was entirely focused on one goal: saving up enough money to buy a car. He started working 10 hours a week making pizzas at a local shop. But earning $4 an hour made saving enough money difficult.

“When I turned 16 and I got my driver’s license,” Kim recalls, “I still couldn't afford a car because, well, I came from a middle-class, first-generation Asian family, and my dad's not going to buy me a car. I mean, it didn't matter what my grades were at that point.”

He figured the next best thing to owning a car was working with cars, so he got a job washing cars at a dealership.

“That was my solution,” he says. “That was my first mindset: ‘Okay, let me go at least get to drive cars.’”

Kim worked at the dealership until he went off to college. During summer break, he returned and asked for his old job back, but they said the positions had been filled. He felt defeated. But as he walked out of the office, one of the salespeople spotted him and asked him a question that would change the trajectory of his career: Why don’t you try selling cars?

Thanks to his excellent work ethic in the past, the manager hired him on the spot. During Kim’s first month, he sold 31 cars, made $14,000, and became salesman of the month, at the age of 19. Some brushed it off as beginner’s luck.

“That just fuels the fire in me,” Kim says. “That's how I am. I'm a competitive person.”

His second month, Kim made even more money and, again, was named salesman of the month. That’s when he decided to make the difficult decision to drop out of college.

“Now, as an Asian growing up in an Asian family, it was probably the hardest conversation that I ever had with my family,” Kim says. “My parents did not approve. They thought I was crazy. They thought I was wasting my life, ruining my life.”

As a compromise, he agreed that after a couple of years of making money, he’d go back to school and fund his own education.

After that conversation, Kim went full time at the dealership and was doing well, but being the ambitious kid that he was, he felt he could do even better. He noticed a finance position opened up at the dealership, and he was drawn to the challenge of selling intangible goods—life insurance, car insurance, paint protection, etc.

“I wanted to be that guy to sell that intangible because I thought it was really fun to take it to the next level.”

Excited by the possibility, he asked if he could take the finance position. The manager said he would need to speak with the general manager, and a couple days later, came back to Kim and said the position had already been filled.

“The anger inside of me actually grew at that point,” he says, “which, I'm not an angry guy at all, but for some reason, I just felt like he was lying.”

Infuriated, Kim marched up to the general manager’s office (“It's totally disrespectful. I should have never have done that.”), and told him he couldn’t stand the place and he was quitting.

A month later, he got a call from the owner of the company, inviting him to come back and talk it out. Kim shared his aspirations with the owner, and eventually, was sent to a finance class where he obtained his certifications and earned his coveted spot in the dealership’s finance department, where he eventually worked his way up to finance director.

At 25 years old, Kim became general manager of a Saturn dealership, and under his oversight, it became one of the top 10 Saturn dealerships in the nation.

The End of an Era, the Start of an Empire

In 2009, General Motors, which owned Saturn, filed for bankruptcy, forcing Kim to make his next move.

“It was kinda sad,” he recalls. “I remember that bittersweet moment that it was the end of that realm.”

With GM going under, some people wanted to reopen the Saturn dealerships as Kia stores instead. They asked Kim if he’d be interested in helping, and he agreed to help them get started, but set a hard date for when he would leave the auto industry.

“I realized that this isn't what I wanted to do for the rest of my life.”

Kim wasn’t entirely sure what he did want to do, but he had a friend, Anik Singal, who had an internet marketing company, and he’d always been curious about what he was doing. So he approached him and said, “Look, I don't know what's going on as far as what you actually do in business, but there's one thing I'm really good at—I can sell stuff and I'm really good at operations.”

The timing was perfect. At that point, Singal’s company had more than $1 million in debt and needed help. The two friends worked out an agreement. Kim would help the company get out of debt, but in exchange, Singal would teach Kim everything he knew. As soon as the company was out of debt, Kim would move on.

And just like that, Kim went from making around $250,000 to $300,000 a year at the dealership to about $80,000 a year at the internet marketing company. But remember, for Kim, it’s all about focus, and he had a plan.

By 2013, after delivering on his promise to get Singal’s company out of debt, Kim transitioned to the next phase of his career by starting his own internet marketing company, JK Marketing. In 2016, he estimates that business brought in $4.5 million in revenue.

From Side Hustle to Full-Fledged Business

While Kim was running his internet marketing company, he and his team developed an in-house solution to their email marketing woes: Sendlane.

“We never intended it to be anything else but for us,” he says. “That was the number one thing: We built it for us. It was a platform. It was ugly. It was purposeful. That was all we built it for.”

But by 2014, friends and clients alike began asking Kim where they could find out more about Sendlane. The problem was, they couldn't. All that existed was a login page for Kim’s company to use to access the app. So in 2015, he and his team decided to open the doors to the public and see what happened. They put up a simple webpage with a payment portal—and people started signing up. From 2015 to 2017, they ran it passively. In its first year, Sendlane reached $40,000 to $50,000 in monthly recurring revenue. By 2016, it climbed to $80,000 to $90,000 a month.

So there Kim was, juggling his internet marketing company, a growing side business, and on top of that, a clothing store in Las Vegas. But in August 2017, a life event changed everything for him. His daughter was born.

“The moment I saw her I realized that I needed to find more time in my life,” he says. “Yet I knew that I couldn't slow down business because I love business too much. So I had to find a good balance.”

To do that, Kim decided to sell most of his companies and revive his favorite tactic—focus. He would pour his energy into one company only, and it would be Sendlane.

“I took that hard look,” he says. “I looked at the companies and I was like, ‘You know, this is the company that I can see incredible legs, and I know we haven't focused on it, but look what we did without even focusing on it. What can we do by simply focusing on it?”

That was in August 2017. From September 2017 to May 2018, Sendlane grew an average of 10 percent, month over month.

Bootstrapping Versus Raising Capital

That age-old question. So far, Sendlane has been 100 percent bootstrapped, but Kim says he will be raising capital to the tune of $5 million later this fall.

“Bootstrapping is great and it's a way of life, of course, and I totally respect it, and I think that it's been a great journey for me.”

But as someone once explained it to Kim, you can own 33 percent of a $30 million bootstrapped company, or you can own 20 percent of a $100 million VC-funded company.

“Being bootstrapped, you're always going to slow yourself down because of revenue and money,” Kim explains. “But when you have a large infusion of money, it becomes a different mindset because now all you're focused on is growth and not the money.”

And what would Kim do with an infusion of $5 million? He says he plans to spend the majority of the funding on growth, such as media buying and salespeople, keeping a close eye on getting an ROI as fast as possible.

The One Thing Your Email Marketing Needs

While we had his attention, of course we had to ask Kim to share some of his email marketing knowledge. The first thing Kim wants people to know, though, is that you can’t use outdated tactics and expect awesome results.

“People are still trying to do what worked in email marketing in 2008, in 2018,” he says. “People don't recognize things have changed so dramatically. … People are just getting a heck of a lot more emails every day.”

In fact, a whopping 269 billion emails are sent each day, according to a 2017 report by research firm The Radicati Group. So how can you stand out in a crowded inbox? Kim recommends behavior-based automation.

Using your email marketing platform, create emails based on actions a user took (or didn’t take). Did they open your emails? Did they buy anything? What kinds of actions have they taken in the past?

For example, if a subscriber isn’t opening any of your emails, it may be time to get more aggressive. On the other hand, if a subscriber is opening all of your emails but hasn’t made a purchase, that tells you they’re highly engaged, but for whatever reason, they’re not buying. It may be time to move that subscriber into a separate email funnel that pushes them to make a purchase.

“Creating that personalized experience is, bar none, the best way to make people want to actually listen to you and want to open your emails,” Kim says. “That's email automation and that's the best way you can do it now, in 2018, and forward.”

This level of personalization can be achieved with email marketing software that allows tagging, revenue tracking, and “if this, then that” statements.

“Things like that you can do with email, you can do with Sendlane of course, but you can do it with most email platforms that are more advanced thinking.”

What’s Next for Sendlane and Jimmy Kim?

Aside from raising a round of funding later this year, Kim has an entire roadmap for Sendlane that he wants to continue to implement.

“I'm not going to tell you that I'm not going to ever sell the company,” he says, “because if someone offers me enough money, I'm going to sell the company, and I'm going to move on to the next project. But the coolest thing about that is, being the owner or founder, you don't have to worry about that if you just put your heart and soul into it.”

Kim also wants to put more time into sharing nearly a decade’s worth of his digital marketing knowledge. He plans to get more into vlogging; he’s already started a YouTube channel where he shares tips on anything from Facebook ads to affiliate marketing. And a recent project he’s particularly proud of is the Advanced Email Marketing course he put together in collaboration with Foundr.

“It's always been kind of a small passion of mine to share this information,” he says. “Whenever comes out, that's something you should be looking for.”

Kim’s 4 Tips for Founders

  • It’s better to be really good at one thing than mediocre at 100 things. “Too many companies try to do too many things,” Kim says. “But if you're really good at three things, you're much better of a company or product than you are if you can do a hundred things but do them at half ass and mediocre.”
  • Make decisions as quickly as possible. If you, like many founders, are struggling with indecision, take Kim’s approach and go with your gut. “One of the biggest failures of most entrepreneurs is they get stuck on decisions so much. They take days, weeks, years, thinking about decisions, how to do this, what to do, how to start, whatever it is. I think the biggest thing as an entrepreneur is kind of following your gut and making that decision as fast as possible.”

    And Kim reminds us: “The worst thing you can do is fail.” And while many people fear failure, it can teach you what you need to learn.
  • You are replaceable. Like many entrepreneurs, Kim used to think it was better to do some things himself rather than train someone else to do it. “I'd sit there and I’d think, ‘Oh, I can do these tasks the best. I'll never find someone to replace me.’ Well, I find out really quickly lately—I've been humbled a lot in the last couple years especially—I realized there's a lot of people that are much better than me at most of the things that I do.” So instead of trying to do everything himself, Kim invests in top talent to grow his business.
  • Great talent is worth the extra money. When hiring new team members, it’s best not to be too stingy when it comes to salary. Realize it’s an investment in the future growth of your company.“You focus on that talent, and the money comes with the talent, and money comes with what they're building. … I know how, especially in the early-stage companies, it's really tough when you're hiring people to make things work, but when you chose the life of being an entrepreneur or a founder, well, you kind of chose the life of being poor at some times and being broke at some times, and struggling sometimes. … That's all fine and dandy, you've got to get through that part.”After hiring people and spending months training them only to find out they weren’t good at the position, Kim decided to spend more money to get the best people possible. He says it’s made a world of difference.

NEW COURSE ALERT: Want to learn advanced email marketing secrets from the cofounder of Sendlane? In our latest course, Jimmy Kim is sharing all the knowledge he’s learned to help you transform your email list into a money-making MACHINE.

In Advanced Email Marketing, you’ll learn:

  • A step-by-step automation blueprint for making sales while you sleep. If you have an online business, this is GOLD for you!
  • The proven, 3-part “cookie system” that will make your subscribers look forward to your emails
  • The 50/50 “spam formula”—this one’s your ticket to escaping the dreaded “Promotions” tab!
  • The 3-second hack that increases opens and builds connections
  • The rest of Jimmy’s 10-year brain dump of in-the-trenches email marketing expertise

To be the first to know when Advanced Email Marketing is open,

>>click here to join the VIP waitlist!<<

Key Takeaways

  • Why he chose selling cars over going to college
  • How he moved on to an internet marketing company and helped it get out of debt
  • Why he created Sendlane
  • The life-changing event in 2017 that made him decide to pursue Sendlane full time
  • Whether or not he plans to raise capital for Sendlane
  • His thoughts on equity crowdfunding
  • How he would spend the money if he got an influx of capital
  • His thoughts on media buying
  • How businesses can improve their email marketing
  • Why you should focus on behavior-based email marketing
  • How decision-making is such a stumbling block for entrepreneurs—and how to fix it
  • On hiring and spending money on the best talent

Key Resources

Direct download: FP241_Jimmy_Kim.mp3
Category:general -- posted at: 5:20am AEST

When Ross Andrew Paquette founded email service provider Maropost in 2011, he never expected it to take off.

“The plan was to have 10 customers and maybe sit by the pool a little more often than not,” he says with a laugh.

But since then, he’s scaled the company to nine figures, with an impressive customer list that includes DigitalMarketer, Livestrong, and The New York Post. And beyond email marketing, Maropost has expanded into customer acquisition and ecommerce solutions.

These are extremely crowded markets, but at the core of the company’s success is its strong commitment to excellent customer service, with heavy emphasis on a 24-hour in-app live chat and five-minute support response times.

We chatted with Paquette to learn the strategies he used to so impressively grow his SaaS company in a short amount of time.

Key Takeaways

  • How Maropost got started
  • The crazy story behind how Paquette met his co-founder
  • How Maropost has expanded from email marketing to customer lead acquisition, mobile push notifications, CRM, and more
  • How long it took to build the first version of Maropost
  • What makes Maropost different from other ESPs
  • The strong customer support focus of the business
  • Why they focus on building a great organization, not just hitting numbers and growth
  • Where he sees the SaaS market moving in the future
  • Why he’s focused on building a legacy with his business
  • What exciting projects are in store for Maropost
Direct download: FP240_Ross_Paquette.mp3
Category:general -- posted at: 7:29am AEST

You don’t become the richest self-made woman in American real estate by playing it safe. Dottie Herman has proved time and time again that bold moves pay off.

In the 1980s, in a maneuver that solidified her path to the top in real estate, Herman flew to California and convinced Merrill Lynch to hire her to help the company expand into the real estate market.

In 1990, when Prudential decided to sell its regional holdings, Herman then persuaded the company to lend her $9 million to purchase its own Long Island real estate offices.

And in 2003, Herman expanded her empire into New York City with the nearly $72 million purchase of the most prominent Manhattan real estate company, Douglas Elliman (again convincing Prudential to finance the deal).

“If you don't ask, you don't know,” Herman says. “And the worst that can ever happen is someone says no.”

Key Takeaways

  • How Dottie Herman got into real estate
  • Her bold move that convinced Prudential to lend her money to purchase one of its own companies
  • How she weathered a recession while running her business
  • The story behind acquiring Douglas Elliman, a prestigious real estate company in Manhattan
  • Why she wanted to expand her real estate empire into New York City
  • Her thoughts on branding
  • How she maintains a good working relationship with her employees
  • What she hopes to do next
Direct download: FP239_Dottie_Herman.mp3
Category:general -- posted at: 2:47am AEST

David Hauser’s life changed forever the moment he taught himself how to code.

Like so many other nascent entrepreneurs, the power of computer programming set him on a lifelong path as a tinkerer, always fine-tuning and building in an effort to shape his and others’ futures.

In much the same way Hauser learned how to code, his entire entrepreneurial journey has been one of unrelenting trial and error, involving a mix of success, failure, and personal and professional evolution. With the creation of tech companies like Grasshopper and Chargify, Hauser used his talents and curiosity to shape his own destiny, and make a splash in the startup world.

Now, in his latest endeavor, he’s directed that very sense of experimentation to the field of health and fitness, with an upcoming book documenting his extensive adventures in improving his own physical well-being.

But it all started with a few lines of code that enabled him to pursue a nontraditional professional life.

“I always worked for myself since before high school,” Hauser says. “I never had a traditional job.”

In the late 1990s, the internet was gaining unstoppable momentum, and as websites started to become viable means of doing business, the demand for web designers and ad creators increased dramatically. This shift granted new opportunities to clever teens on the cutting edge of new technology who wanted to make a few bucks (and sometimes much, much more) from the comfort of their childhood bedrooms.

Hauser, who has no formal tech training, was one of these teens, swiftly making his way into the world of banner ad management and creating his own company WebAds360.

“From there, I started grabbing onto different things, learning different technologies, working with other people,” he says. “But it all started with web design.”

Before graduating college, he founded a second company, called ReturnPath, to help businesses that used permission-based email lists to keep their addresses up to date as subscribers graduated college or changed jobs.

Being a teenage entrepreneur in the late 1990s and early 2000s presented some major limitations, however. For one, what phone number were prospective clients supposed to call?

Cell phones of the time were still extremely basic and lacking features like putting a caller on hold or setting up a conference call. Meanwhile, home landlines might be answered by baffled family members. Neither option exactly screamed professionalism. It wasn’t just a problem for young people working at home, either, as lots of scrappy new entrepreneurs were lacking dedicated business phones.

So when the born and raised New Yorker headed off to Babson College in Massachusetts, and met Siamak Taghaddos, another entrepreneur with a similar problem, they put their heads together to pursue a solution.

Leaping Toward Success

“It started with a really simple idea,” Hauser says.

All they wanted was a way for tiny companies, startups, and solopreneurs to have the phone presence of a large, established company. And when neither he nor Taghaddos could find an existing solution to their problem, they did what so many successful entrepreneurs end up doing. They built their own solution.

Because they were only out to solve a problem for their existing businesses, Hauser admits they didn’t spend a lot of time on research or planning.

“It wasn’t well-researched necessarily, beyond the fact that we knew we had a problem, and we thought that we could solve it,” Hauser says.

During the process of creating the solution to their own problem, they realized that they were really onto something. That maybe this was going to be much bigger than a new tool for their own tool belts.

And because he and Taghaddos had their fingers in a lot of pies, and the money flowing in from their existing projects was enough to fund their new endeavor, they never needed to request outside funding.

In 2003, the pair officially launched Grasshopper, a service that enabled small businesses to present themselves like big businesses using just a cell phone, complete with extensions, customizable greetings, and simultaneous call handling.

Before long, Hauser shut down all of his other businesses, including WebAds360, and decided to focus entirely on the management and growth of Grasshopper.

And business boomed.

Small businesses and startups flocked to the service, delighted that it enabled them to operate with the professionalism of a well-established corporation. The company continued to grow for the next six years, when Hauser decided it was time to relinquish his role of CTO.

“I was always relatively technical,” he says. “But I am definitely not a top programmer, and as we really started to build out the company, it was clear that we needed to have better leadership from a technical perspective, and I could apply my talents better elsewhere.”

So, Hauser moved through another phase in his evolution as an entrepreneur and broadened his scope.

“Rather than being just focused on the technology side, I spent a lot more time in company culture, HR, hiring, process, goals and how we implemented those,” he says. “I shifted my focus.”

And as he stepped back, looking at Grasshopper from all angles, he saw possibility everywhere.

Trial and Error

Even though Grasshopper was a big success, Hauser’s head was bursting with new ideas and new problems to be solved.

In 2009, he developed Chargify for streamlined recurring billing. Then in 2010, he created PackageFox, a way to secure guaranteed refunds from late or lost packages shipped through FedEx or UPS. And in 2011, he launched PopSurvey, a graphical survey creator.

These are just a few of the self-funded side businesses born out of Grasshopper, and Hauser says there are many more that aren’t resume-worthy or that never saw the light of day.

“Those are probably just the ones that became something,” he says. “There are tons of others that failed and never really got very far, or failed horribly bad and we lost a lot of money.”

PopSurvey eventually fizzled out, overcome by competitors. PackageFox was an opportunity for Hauser to learn more about automation, but he eventually sold it off to someone in the space who could make better use of it. Hauser kept Chargify longer than either of the other two, but recently sold it, as well.

And while Hauser learned much during this time of exploration and creation, he admits that it created a lot of tension within his team at Grasshopper.

“We thought maybe we couldn’t keep growing Grasshopper, and we started all these things, and wasted a tremendous amount of time and money, but more importantly distracted ourselves—and even worse, probably, distracted the team—from the thing that was growing well. We could have just doubled down,” he says. “The success would have been much better than if we had wasted all that time, but that was the blind spot we had, and luckily we realized it.”

Hauser says that internal blind spots are some of the most difficult challenges that founders face. While an entrepreneur is wrapped up in the excitement of a new creation, he says it can be nearly impossible to determine impartially whether or not that is the best possible use of time.

“We’re overly invested in something, and we have that blind spot to maybe this isn’t the right thing to be working on right now,” he says.

But whether by choice or by force, the decision to take the left fork instead of the right is eventually made.

“I think sometimes it happens naturally. That progression just happens and you kind of see it,” he says. The problem is that sometimes it takes too long, and we over-invest in something that’s not productive, taking time away from something that has a much brighter future.

And while he is thankful that the ultimate effect this period of distraction had on Grasshopper was minimal, he would have done things differently given the opportunity.

“Looking back on it, it was not the best choice,” he says. “We should have focused on Grasshopper and grown Grasshopper.”

But despite any amount of distraction, Grasshopper grew and grew until the company was raking in $30 million in annual revenue. Before long, the success of Grasshopper drew the attention of hungry eyes, and the acquisition calls started pouring in.

Sales and Farewells

“When we started the company, we had no exit plan,” Hauser says. “Our goal was to build a company we loved being at and loved doing what we were doing. That was it.”

So when the first of the interested buyers knocked, Hauser turned them away empty-handed.

But as Grasshopper was a privately funded company, without the limitations placed on it by investors and capital, interested buyers were not to be discouraged. Eventually, Citrix, a multinational software company, made them an offer that they couldn’t ignore.

Citrix said that Grasshopper could retain their brand name, keep the team together and continue growing the company.

Over the course of a year, Citrix worked with Hauser and Taghaddos until they recognized that this proposal was a great fit for everyone involved. So they decided to sign on the dotted line.

As soon as the sale was finalized in 2015, both Hauser and Taghaddos bid their greatest success farewell, something Hauser describes as being “very emotionally difficult” but “best for both the company and Citrix.”

He trusted the management team to keep steering the ship in the right direction, and with Citrix’s new ideas for growth and strategy, he knew the business was in good hands. Neither he nor his partner were interested in sticking around for “two more positions for highly paid executives with titles that are kind of meaningless in a big public company.”

While he knew he had made the right decision, Hauser was rocked by the impact of his choice.

“All of a sudden, your email address changes, your phone number, your identity,” he says. “For 12 years, I was the guy involved in Grasshopper, and I ran Grasshopper. That’s who I identified with and people identified me with, and that just changed overnight.”

For a year after stepping away from Grasshopper, he continued with Chargify, but in July 2016, he sold that business, too.

With a clean slate, Hauser stepped into his next phase of evolution.

He explains that the core purpose of Grasshopper was to empower entrepreneurs to succeed. Now, he’s just hopped into a larger field.

“After a year, I came back to and found my core purpose,” he says, “and that’s empowering others.”

The Pursuit of Health

It’s been two years since Hauser’s life changed with the sale of his two most successful brands, and he spent the latter half of that time on an exciting new project: himself.

“I really wanted to change my life, and that included changing my exercise and diet, and I went from doing extreme endurance sports to practicing yoga six days a week,” he says. “Like massive change.”

In pursuit of this change, he also took just about every test imaginable—blood tests, stool tests, sleep tests, DNA tests and more. All in the pursuit of a healthier life.

And now he is ready to share what he has learned.

Thirty pounds lighter, Hauser is releasing a book in 2019 called Evolve: Optimize Your Life, Body and Mind. In it, he busts myths around fad dieting, trendy workouts, and quick fixes, sharing instead the methodology he used to transform his own life.

He also tackles many of the health sacrifices entrepreneurs make while chasing lofty goals. And despite all the changes he tried in his own life, he isn’t necessarily an advocate of massive life shifts or hours spent in the gym. He believes that often the little choices can make the most impact.

“It’s always easier to work an extra hour past midnight because no one is bothering you, right?” he says. “It’s easy to pick up the phone and call for pizza, because you know you get that instant boost and gratification and can continue working for an extra hour. But I think, at the end of the day, what I care about is output and productivity, and I don’t think there is very much value in that extra hour of work when it is low productivity and low value, and it is just work for work’s sake.”

Through his book, Hauser hopes to open the eyes of founders and non-founders alike to the power they have over their own lives and the small adjustments they can make that will bring huge impact.

“The idea with the book is allowing people to understand that their life is a self-experiment and doing little things like maybe just buying a new pillow for your bed…could have massive gains,” he says. “Each thing in your life is an experiment, because you’re different from everyone else.”

Once again, just as he did as a teenager learning to code, Hauser is relying on the power of trial and error—how the slightest adjustment, addition, or subtraction can make a big difference. He is, yet again, learning to crack the code, and yet again, hopes it can change lives.

David Hauser’s Tips For Living A Healthier Life

Since founding, building and selling Grasshopper, David Hauser has invested much of his time in pursuit of a healthier life. In 2019, he is releasing a book on the subject, “Evolve: Optimize Your Life, Body and Mind,” and these are just a few of the tips held inside for entrepreneurs pursuing a healthier lifestyle. For more information on the upcoming book, and a free chapter on the impacts of coffee, visit www.evolvebook.com.

  1.      Establish a Routine

“I am a huge believer in routine,” Hauser says. “If you talk to the most successful people in the world, most of them will tell you routine is very important.”

He is such a strong believer in routine that, even when he doesn’t plan to work out, he still goes to the gym because it’s on his schedule. By developing a routine that allows for more movement, more stability, and more sleep, he thinks entrepreneurs can improve their lives—as well as their businesses—in enormous ways.

  1.      Sleep More

“As founders, understanding our sleep patterns—improving our sleep patterns—I think has tremendous effects and gains on our productivity the next day, the next week, the next year that we don’t realize,” Hauser says.

By making more time for sleep, and being unwilling to compromise that time for a little extra work at the end of the day, he believes that entrepreneurs will actually be far more productive. Entering into each new day refreshed improves mood, interaction, and problem solving—all areas that are vital for success.

  1.      Experiment

“Life is a self-experiment and doing little things like maybe just buying a new pillow for your bed…could have massive gains,” Hauser says. “Each thing in your life is an experiment, because you’re different from everyone else.”

Even the smallest changes can make a massive impact, and what works for others may not necessarily be the best choice for you. By trying new ways to solving old, persistent problems, he believes people can make great impacts on their health, and what is more entrepreneurial than that?

Key Takeaways

  • The first company he started (in high school!)
  • The Grasshopper origin story
  • Entrepreneurial blind spots and distractions
  • Why Hauser stepped down as CTO at Grasshopper
  • Chargify, PopSurvey, PackageFox, and the other companies he’s started
  • The story behind Citrix acquiring Grasshopper
  • What Hauser did after stepping away from Grasshopper, and the emotional side of selling the company
  • Pooling customer service for different products you’re building
  • Marketing strategies they used to grow Chargify faster
  • Hauser’s new book and new projects
  • How to keep yourself healthy while working hard
Direct download: FP238_David_Hauser.mp3
Category:general -- posted at: 8:41am AEST

Jay Baer was born to be in business. As a seventh-generation entrepreneur, he always knew he’d start his own company one day.

Over the years, his ventures have run the gamut—from an early internet company to a design firm to his popular marketing consulting firm, Convince & Convert. His clients have included Hilton, Cisco, Nike, and Oracle, just to name a few.

And if that weren’t enough, Baer is a New York Times-bestselling author, with six books under his belt. His latest, Talk Triggers—co-authored by marketing expert Daniel Lemin—dives into the power of word-of-mouth marketing and how to use it in your own business.

What is a talk trigger? According to Baer, it’s a “strategic, operational choice that creates conversations.”

Take DoubleTree, for example. Their talk trigger is the warm chocolate chip cookie given to every guest who checks in. Baer and Lemin interviewed 1,000 DoubleTree customers for this book, and that’s just for one of the 30+ case studies you’ll find inside.

If you want to acquire customers faster and cheaper, listen in as Jay Baer shares his marketing know-how to help you identify your business’s talk trigger.

Key Takeaways

  • The origin story of Convince & Convert
  • How he came to work for an internet company before he even knew what the internet was
  • How he sold the Budweiser.com domain name to Anheuser-Busch for 50 cases of beer
  • His latest book, Talk Triggers, and why word-of-mouth marketing is so powerful
  • How to create a word-of-mouth strategy that will win over customers
  • DoubleTree’s genius strategy of giving a warm chocolate chip cookie for free to every guest (their talk trigger)
  • Why small businesses are perfectly primed for a talk trigger
  • UberConference’s on-hold music talk trigger example
  • How to (and how NOT to) find your talk trigger
  • Why Baer invests in several companies
  • How to use content marketing and inbound marketing to grow your business

 

Direct download: FP237_Jay_Baer.mp3
Category:general -- posted at: 5:30am AEST

“I don’t think CEOs should be able to be CEOs if they can’t code,” says Grant Petty, founder and CEO of Blackmagic Design.

That’s a bold statement, but Petty is a bold guy. Working as an engineer in the television industry, he realized the technology was overpriced. So he started a company that cut costs and put power into the hands of creators.

“Really what I was doing was a protest against the way the TV industry was,” he says.

And soon, Petty began to challenge the status quo of business in general. He runs his company a little differently: There are no spreadsheets, very little planning, and to him, metrics hardly matter.

“In the Western world, business culture becomes so rigid and so inflexible,” he says. “If you’re a creative person, you can get destroyed by that because they don’t allow you to exist.”

Today, Blackmagic Design boasts nearly $300 million in annual revenue and is still 100% bootstrapped. Its technology is used by 80% of modern day feature films. We sat down with Petty to discuss what he’s learned about how to run a meaningful business in the face of opposition.

Key Takeaways

  • How his frustrations with the TV industry inspired him to start Blackmagic
  • The story behind Blackmagic’s first product and how he got it off the ground
  • The challenges with getting funding and the struggles he faced when he decided to self-fund
  • The “wave of hatred” that can come when you try to disrupt an industry
  • How long it took to become an industry leader
  • How to know when it’s the right time to add a new product to your line
  • Balancing his creative side with the operational duties of being CEO
  • One common thing that’s destroying creativity in businesses
  • Blackmagic’s culture and how it fosters creativity
  • What’s next for the company
Direct download: FP236_Grant_Petty.mp3
Category:general -- posted at: 7:20am AEST

These days, Sabri Suby reigns supreme as the founder of King Kong, Australia’s fastest-growing digital marketing agency. But he’s come a long way since his first job, selling ink cartridges over the phone, which he describes as a “cold, hard slap to the face.”

“I sucked incredibly badly at doing that in the beginning,” he says.

Soon enough, thanks to mastering the art of sales and persuasion, he became the top producer in that role, went on to travel the world, and eventually, forged his path as an entrepreneur. For all of his companies, he realized he was asking the same fundamental question: “How do we get more customers?”

His obsession with answering that question has helped him perfect his selling skills and scale King Kong from zero to $10 million in annual revenue in just four years.

In his latest book, Sell Like Crazy, Suby reveals the selling system he’s created and honed over the years, including things like the Magic Lantern Technique and the Halo Strategy. He says he’s deployed this system in more than 167 different niches and markets—and it’s worked every time. With Sell Like Crazy, he shares the steps you need to take, regardless of what stage you’re in, to level up your business.

Key Takeaways

  • Where to begin if you want to succeed in selling online
  • Psychology vs. technology and why the traffic channel doesn’t matter
  • The biggest mistake online businesses are making regarding sales
  • Why you shouldn’t start a business by looking only at your interests
  • How to identify a gap in the market that you can fill
  • Using automation and a funnel to convert sales
  • Why skepticism online is at an all-time high—and how to overcome it
  • How to know when to ask for the sale
  • How to get over the fear of selling
  • Why you’re doing the world a disservice by not trying to sell
  • Why paid advertising is key to growth
Direct download: FP235_Sabri_Suby.mp3
Category:general -- posted at: 9:34am AEST

Heavy Lifting

From humble beginnings to fitness empire, Sweat CEO Tobi Pearce tells us what it takes to run a multimillion-dollar business and grow a powerful brand with a significant other.

At just 26, Tobi Pearce has accomplished a lot. He’s the CEO of Sweat, a fitness app that’s been downloaded 30 million times. He’s engaged to his business partner and Instagram fitness star Kayla Itsines. And together, they’re worth an estimated $63 million, according to Australian Financial Review.

But just a decade ago, Pearce was homeless and struggling to get by on $45 a week, something he revealed in an Instagram post in July 2017. “I am not posting this for sympathy and this is not a sob story,” he wrote. “I just thought it was time some of you got to know ‘me.’”

To get to know Pearce is to discover many unexpected facets. While he’s popular for his fitness empire, prior to all of that, he was a “nerd” who grew up in a small town in Australia and loved playing classical music. From what we’ve seen on social media, he can just as easily shred it on piano as he can in the gym. On his Facebook page, he posted a video of himself playing a complicated Chopin number, writing, “I used to be embarrassed to tell people I played piano as a kid because it wasn’t ‘cool’ or classical music made me a ‘nerd.’”

Today, Pearce has plenty to be proud of. In addition to his upcoming wedding to Itsines, TechCrunch reports that the couple’s fitness company is on track to bring in $77 million in revenue this year.

From Classical Music to Fitness Classes

Pearce began his foray into fitness when he started working as a personal trainer to pay his way through college. He and Itsines met at a gym and began dating around 2012. Eventually, the pair became business partners, too, with Pearce taking over the marketing side, helping to promote Itsines’ popular Bikini Body Guides ebooks and grow her Instagram account (today she has more than 10 million followers).

Not one to be easily satisfied, Pearce then set his sights on expanding the business “to kind of shake up the industry.” That’s when the Sweat platform was born.

“My whole career and this particular field has always been about trying to push boundaries and kind of see how far we can move the dial and how big we can build things,” he says.

Originally dubbed “Sweat With Kayla,” the Sweat app provides workout videos, meal plans, and progress-tracking tools to its subscribers, for $19.99 a month or $119.94 a year. It targets millennial women with programs from bikini body to post-pregnancy workouts and boasts well over a million monthly active users.

The Appeal of an App-Based Business

Moving from ebooks to a mobile app, what made Pearce choose a new platform for Sweat? As he tells Foundr, there were three main reasons:

First, he wanted a better user experience. Originally, Itsines’ workouts were being shared through ebooks—not a very interactive platform. Pearce wanted a way to have more control over the user experience, including being able to gather user data to improve the product.

Second, he wanted to meet the needs of millennials. Most of Sweat’s customers are in that age group, so Pearce knew that meant the content needed to be mobile-friendly.

Finally, he wanted to be able to scale. To be able to make a real impact on the health and fitness industry, internationally, Pearce knew Sweat needed to switch business models.

“The big move was, yeah sure, from ebooks and a website to an app,” he explains. “But it was also a huge migration from a single-purchase service into a subscription business. And subscription business economics are completely and fundamentally different to that of a traditional ecommerce business.”

Combating Churn With an Engaged Community

As with any subscription business, churn is always a concern. One way to combat the tendency for members to cancel their subscriptions is to cultivate an engaged community. For Pearce, this is a no-brainer: He’s seen how it works from his personal training days.

When he was a personal trainer, he often picked up on the social habits of the people he was training. At 8:30 a.m., for example, a few women attended a 30-minute class with Pearce, while another group of women had coffee together downstairs awaiting their 9 a.m. slot. Once 9 rolled around, the groups would exchange spots, and by 9:30, when everyone was finished with training, they’d all go to the beach together.

“Fitness actually brings people together,” Pearce says.

But how can you recreate the social aspect of in-person fitness classes in a mobile app? The Sweat team knows people feel their best right after they’ve exercised, so within the app, users are prompted to invite their friends once they’ve finished a workout. They can even share their trophies and achievements, as part of what Sweat calls “social currency.”

Beyond the friend-invite feature, Sweat has a community forum where members can share stories, find advice, and get motivated.

“Not seeing much progress :( starting to panic,” wrote one bride-to-be on the Motivation & Encouragement forum.

“There is such a difference between the two photos,” replied another member. “You’re definitely making progress so keep up the good work!”

“There's all these different stories,” Pearce says of the forums. “But there's hundreds of thousands of women that can connect and relate with one another, and that really brings them together.”

On Chasing Growth Without Sacrificing Quality

While Pearce is aiming for growth, he’s not willing to do it at the cost of top quality and a strong brand. Sweat’s trainers, for instance, are carefully curated.

“We're not really looking to have like a hundred or a thousand different trainers and programs,” Pearce says. “We're kind of looking to have best in house and best in class.”

A prime example of this is Kelsey Wells, who joined the Sweat team over a year ago and leads the weight training and post-pregnancy programs. Beyond her finesse in the gym, she’s excelling on Instagram with 1.4 million followers. Her brand growth and depth have impressed Pearce, who says, “We'd much rather work with 10 people like her in their own specific categories than a thousand people that are just generalists.”

With a team of talented trainers who are also Instagram rockstars, does Sweat have aspirations of acquiring influencers abroad to boost international growth? “There's definitely a potential for that,” Pearce says.

How a Fitness Power Couple Finds Work-Life Balance

Google “Tobi Pearce” and you’ll find plenty of headlines referring to him as “fiancé of Kayla Itsines.” From the start, he’s been comfortable doing the behind-the-scenes work while Itsines steps into the spotlight for the Sweat brand. As soon-to-be spouses and current business partners, how do they strike a healthy balance between work and personal life?

“It has its testing moments, that's for sure,” says Pearce, adding that he’s obsessed with the business aspects while Itsines loves handling content creation and community interaction.

“She’s able to switch off,” he says of his fiancée.

Pearce, on the other hand, not so much. “I've always been probably a little bit too interested in ,” he says. “If I'm not talking about it, I'll be reading about it. If I'm not reading about it, I'll be listening to something about it or learning one way or another.”

Pumping Up Your Personal Brand

In recent years, a movement to build your “personal brand” apart from your company or product brand has taken hold of the entrepreneurial world. Big names like Gary Vaynerchuk and Neil Patel come to mind; both social media powerhouses use their personal brands to funnel clients into their consulting agencies.

Sweat has a similar story. It began as Itsines’ personal brand, which Pearce helped grow into the formidable Instagram presence it is today. Recently, Forbes named Itsines as the top social media influencer in fitness. Many of her faithful fans have followed her to the Sweat app, too, where she leads high-intensity workouts based on her Bikini Body Guides.

So what’s the secret to building a powerful personal brand? “Content and messaging are really king,” Pearce says. That means content that is high quality and messaging that creates interest.

“There's so much crap on social media,” he adds.

In the fitness sphere, he says it’s more than just looking good and posing for the camera. You need to create content in an intimate and authentic way. Just take a look at @kayla_itsines on Instagram. Instead of polished, picture-perfect content, it’s a mixture of motivational quotes, funny memes, before-and-after praise for her clients, and of course, workout videos—all with conversational captions where Itsines’ personality shines through.

While Pearce is hesitant to give a one-size-fits-all strategy for growing your Instagram—”Every industry is different,” he warns—there is one Instagram tip he recommends for fitness brands: lay off the endorsements.

“It's all well and good to sell a product or do endorsements, sure,” Pearce says. “But if that becomes everything that you do, it really becomes a bane of your existence and it's actually quite saturating for your personal brand. It's impossible for you to maintain credibility and authenticity as a brand if every second post that you do is talking about a new deal that you've done.”

Instead, says Pearce, focus on what you’re good at. Let’s bring Gary Vee back into the discussion. Take a look at his social media accounts. How many times does he mention his agency?

“I don't think I've ever actually seen him do that,” Pearce says. “The point that I'm making there is that if you do have a product, it's very often what you're trying to do is sell yourself and sell the opportunity, sell the dream. You're not really actually trying to sell the product itself because telling people to buy stuff is irritating.”

The Sweat brand steers clear of hard sells. That’s no small feat in an industry that’s always pushing guarantees of six-pack abs, a celebrity body, or a nice rear-end. “We would never, ever do that,” Pearce says of his company, “because reality is that it instills the wrong cycle of mindset in consumers. It predicates the wrong perceived mindset before consuming a product and that only actually sets up consumers for failure.”

How to Sell Without Selling

If people hate being sold to, how do you get them to buy? Sweat focuses on the benefits, not the features. For instance, instead of promising you amazing abs, Sweat’s messaging would tell you how you’re going to feel more confident and develop better relationships by getting healthy with its app.

“The best car salespeople are the ones who actually don't try to sell you anything, but they make you feel like you really want to buy the product,” Pearce explains. “They're telling you why this car's going to be perfect for your family. … They're not telling you that it's got 19-inch rims and blah, blah, blah.”

For Sweat’s Instagram account, Pearce focuses on posting educational, credible content that adds value: healthy eating tips, user-generated content, and motivational quotes, with a few posts highlighting the Sweat app sprinkled in.

“It pitches us as industry experts—which we rightfully are—but then it makes people turn to us when they do want to spend their money on a product that's actually going to help to solve these problems in their life, rather than going for the one that just says six-pack abs, because no one actually believes that crap.”

And Pearce doesn’t get fixated on the one-off purchases; he’s looking to create long-term users and repeat buyers, which is something the Sweat platform is built to nurture. “They develop friendships with other members of our product and that builds our community.”

Working Out What’s Next

For the next year or two, Sweat will be focusing on reducing churn and improving the product, namely, getting more quality content and keeping users engaged.

Long-term, though, Pearce hints at something more. He says there are three big pillars in the fitness industry: facilities (think studios and gyms), trainers and therapists, and content. “We obviously kind of only play in the content spectrum of that at the moment,” he says. “I think in the longer term, we'll probably, hopefully, get a chance to play in some of the other areas as well.”


Key Takeaways

  • How he met Instagram fitness influencer Kayla Itsines, who’s now his business partner and fiancée
  • How he scaled the brand beyond Kayla’s Instagram account
  • The advantages of developing a mobile app versus a strictly web-based platform
  • The growth strategy that catapulted Sweat to about 30 million users in two and a half years
  • What it’s like to run a business with your significant other and how to make it work
  • Tips on growing a personal brand and becoming an influencer on Instagram
  • How to promote your business on Instagram without being salesy
  • His strategy for fostering a strong Sweat community and reducing churn
  • What’s next for Sweat

 

Direct download: FP234_Tobi_Pearce.mp3
Category:general -- posted at: 8:53pm AEST

Steve was a guest of StartCon, Australia’s largest startup and growth conference. It was held over two days at Randwick Racecourse in Sydney on Nov. 30 and Dec. 1.

One For The Books

The story of Booktopia, ‘Australia’s favorite bookstore,’ and how they’re conquering the competition—even Amazon.

Once upon a time, a programmer who got his start with IBM was given an enchanted opportunity to create a magical bookstore that would one day battle powerful giants. The magical power? With just a click of a button, Australians could have brand new books delivered within days to their doorsteps.

And just like in most fairy tales, our hero and his friends stumbled upon the opportunity entirely by accident. “We literally fell into it,” says Steve Traurig.

Traurig and his two brothers-in-law, Tony and Simon Nash, were running an online marketing consulting business when Angus & Robertson, the 130-year-old Australian bookseller, approached them and asked if they would be interested in getting into the book business. The pitch was a white label book retail website, meaning that everything from the website creation to the distribution would be handled by Angus & Robertson. All Traurig and company had to do was add their personal flair.

But Booktopia, the company that arose from that project, would end up becoming something much bigger. Nearly 15 years after Traurig’s brother-in-law said he “wouldn’t mind giving that book thing a bit of a go,” Booktopia has served over 4.2 million Australians and is on track to bring in $115 million this year, making it the market leader in online book sales. Oh, and they now own Angus & Robertson.

The journey from their very first book sale to squaring off against Amazon for online book supremacy in Australia was a chess game of strategic move after strategic move. Thanks to some shrewd decisions, including focusing on customer interaction and building their own ecommerce and fulfillment systems, Booktopia’s well on its way to happily ever after.

A White Label Bookshop, Transformed

In 2004, with only $10 a day to put toward advertising their new business, Traurig and the Nash brothers dove headfirst into the book world.

“When we first started, we owned nothing,” Traurig says.

When Booktopia first launched, Angus & Robertson created their website, managed their distribution and owned the brand. Traurig and his brothers-in-law were responsible only for marketing, so they created a few Google AdWords campaigns (one of which is still running today) and waited for their first books to sell. By the end of the first year, they were doing $100,000 in business a month.

This worked beautifully for the trio and for Booktopia for three years, but in 2007, they had to confront the reality that what they were building, with revenue ever increasing, could all go away in an instant. They also realized that the fulfillment company was neither able to keep up with the growth they were experiencing, nor were they able to meet the expectations Traurig held.

“We decided we had to go out on our own, because we were actually building a company of value,” he says, “and we realized that if you want to have something of value, you have to do it yourself.”

Things were going well, and they realized that in the current setup, they didn’t really own anything of substance, should they ever want to sell.

So they broke away from the fulfillment company and set out to turn Booktopia into something of their own. They set up their first warehouse, hired a warehouse manager, bought some shelves off eBay, and got to work building their own core systems.

“Dealing with those sorts of numbers in databases, in the website, in the front end, in the backend, etc., the scale is beyond almost any other retail environment, and we had to make it all work,” he says. “We built the systems ourselves and that takes particular commitment and skill.”

With all of the changes taking place, it would have been reasonable to see a marked customer drop off. Before the transfer, they did about 130 orders a day, but that number only dropped to about 110 a day, even after everything from their systems to their website changed.

Through it all, the Booktopia customers remained loyal. In fact, the focus Booktopia places on the customer experience would come to define their brand.

“It’s about the customer obsession,” Traurig says. “About putting yourself in the place of the customer.”

When Traurig and his brothers took on the fulfillment side of the business, they began with only a single book on their physical shelves, but knew that building up their stock was the only way to give their customers the best experience.

Instead of the long wait from the moment an order was placed until a supplier could deliver the order and then ship it off, all they had to do once they built up stock was grab an item from the shelf the moment the order came in and send it along.

“That was essentially a business-changing experience, because the feedback we got from the customer was instantaneous,” he says.

Customers responded with glee that their books arrived so quickly, inspiring them to remain loyal and recommend the bookseller to friends. Because of this organic growth, Booktopia has never needed to take on investors.

Even without investors, they have consistently outmatched the competition and met their sales goals. In fact, they made the BRW Fast 100, Financial Review’s list of the fastest growing Australian brands, seven times between 2009 and 2016, the only company to do so.

Traurig says that they have also built strong relationships with their banks, something he describes as a critical part of doing business. This gives them additional wiggle room if necessary, staving off a need for traditional investors.

“A lot of startups, a lot of founders, think they immediately need to go out and grab someone else’s money and give away bits of the company,” he says. “There’s definitely merit in doing that for certain types of models. We chose to actually build a solid business organically and build it off the back of our customers and customer service.”

And this approach has carried them through what could have been a business-ending battle.

Squaring Off Against a Giant

When Amazon announced that it would be launching in full in Australia at the end of 2017, Traurig wasn’t nervous. The institutions they worked with, however, had concerns.

The gargantuan online retailer had generated $136 billion in revenue the year before, with all signs pointing to continued growth. So how was “Australia’s local bookstore” going to keep up?

Well, according to Traurig, they had been keeping an eye on the behemoth from the very beginning and hadn’t let its success deter them.

“From our point of view, when we started Booktopia, Amazon was shipping $100 million worth of books into Australia already, and we didn’t worry about that,” he says. “We were fearless.”

They focused instead on their own business, and the most important asset: the customers.

Due to its global nature and size, Amazon has an impersonal quality to it that Traurig says Booktopia always vowed to counter. For example, Booktopia’s website has the office’s physical address, email, and phone number on every single page, not only allowing but encouraging customers to reach out and share praise, complaints, and questions instantaneously. They wanted to be accessible and feel like a part of the community.

To keep up with the emails and phone calls, they quickly hired their first customer service staff, a cheerful individual who still answers the questions of Booktopia customers today.

Traurig says they take customer feedback extremely seriously and use it to inform their continued development. With a 20-person development team on the case, he says that Booktopia is always in pursuit of the best possible user experience, a quest that can only be completed through regular, honest feedback.

Traurig says that this approach to customer service has been the key to keeping up with the competition.

“All throughout our history, Amazon has been this massive company…but we were just focused on getting product to our customers.”

And if winning 2016’s National Book Retailer of the Year and 2017’s National Bookstore of the Year at the Australian Book Industry Awards is any indication, Booktopia’s approach is working.

The Next Page

Today, Booktopia has over 6 million products available on their website with over 150,000 of those titles in stock in a 140,000 square-foot distribution center. They also acquired Angus & Robertson, along with its online store Bookworld, in 2015.

“It’s a 130-year-old company that had a very, very good chance of disappearing completely,” Traurig says. “So for us, it was also an honor.” The company currently runs as its own business unit with independent marketing, branding and customer base.

The founders also have high hopes for the company’s automated systems and distribution center. To demonstrate their capabilities, Booktopia acquired an online camera and optics company. In doing so, Traurig and his partners are hoping to show that their systems can handle more than a single type of product.

So what’s next for Australia’s favorite bookstore?

Although they ventured down the path of going public in 2016, they pulled the IPO just before launch, choosing to remain a private company. With Amazon looming, and after watching several other online companies attempt to go public and fail spectacularly, they decided to keep things as they were.

While Traurig has a “never say never” mindset toward another try at going public, there are no plans to move in that direction for now.

“Our customers have been our investors,” Traurig says. “What we’ve always chosen to do is delight the customer.”

And in true fairytale fashion, delight them they will.

Steve Traurig’s Tips on Building a Sellable Company

While founders are still scaling the challenging mountains that come with launching a business, it might seem silly to think 500 steps ahead to the day they will be shaking hands on the sale of the company. But Steve Traurig believes building a company that will someday attract a buyer starts on day one, so he offered three tips to creating a company that will sell.

  1. Make Sure Your Bookkeeping is Impeccable

“One of the things we’ve always done is make sure that our financials, our financial reporting and our accounting are top notch,” he says. As you might expect, well-kept books have always been a priority at Booktopia. From the very beginning, they sought financial advice when necessary and kept all of their books in perfect order. And because neither he nor his other co-founders had strength in bookkeeping, they always made it a number one priority to hire someone skilled.

“It may just all look like a whole bunch of receipts and a pain the neck…but aim to set up solid financial management right at the beginning.”

  1. Create as Many Original Things as You Can

In the beginning, Booktopia was a white label website, but when it started to flourish, Traurig and his partners realized they needed to make some changes. “If we wanted to sell it,” he says, “we had nothing to sell,” Traurig says. So they decided to build all of their own core systems to create something that would be attractive to eventual buyers. Traurig encourages founders to use as many original systems as possible and innovate wherever feasible. In doing so, the value of the company you may someday look to sell increases significantly.

  1. Demonstrate What You’ve Built

Now that you’ve created something original, it’s time to show what it can do! Perfect its intended capabilities and then push its limits. This is what Traurig says they are currently doing at Booktopia with their distribution systems. Because they created the automation used in the center, they decided to demonstrate to potential buyers that it could handle more than one product at a time, leading them to purchase a camera company. The only thing better than an innovative creation is one that can be used in more than one way. Traurig says that demonstrating this is a great way to build a sellable company.

Key Takeaways

  • How this self-professed tech guy “fell into” starting an online bookstore that rivals Amazon
  • How Booktopia has remained fully self-funded for 15 years
  • Why they pulled an IPO just before it went live
  • How he felt about Amazon coming to Australia
  • For bootstrapped businesses, how to know when it’s time to build your own internal tools and handle shipping and fulfillment yourself
  • The reasons behind the acquisitions Booktopia has made, particularly Angus & Robertson
  • How Booktopia approaches Conversion Rate Optimization (CRO)
Direct download: FP233_Steve_Traurig.mp3
Category:general -- posted at: 11:43pm AEST

Eighteen years ago, David Heinemeier Hansson was a college student sitting in his little apartment in Copenhagen when he stumbled across a blog post by 37signals (which would later become Basecamp), a Chicago-based design company he had long admired.

In the post, co-founder Jason Fried posted a question on some aspect of programming. Hansson knew the answer, so he contacted Fried. Several emails later, Fried was asking Hansson to work with him.

“Jason decided it was easier just to hire me than to learn how to program,” Hansson says, “and that's how we started working together.”

That was the beginning of a now-legendary tech startup team, and an illustrious career for Hansson. In Hansson’s early days at Basecamp, he famously created Ruby on Rails, an open-source web development framework once used by Twitter, and still in use by GitHub, Shopify, and many more.

We were excited to talk shop with Hansson (often known as DHH) because, in an industry dominated by breakneck Silicon Valley culture, Basecamp stands out in many ways: It’s been profitable every year since its inception in 1999, it doesn’t chase growth, and it doesn’t even set numerical goals.

With their latest book, It Doesn’t Have to Be Crazy at Work, Hansson and Fried are hoping to challenge the prevailing narrative about chaotic work culture by sharing the unique way they run their company.

This is Part 2 of our Basecamp co-founder interviews. To hear Part 1, check out our podcast interview with Basecamp co-founder Jason Fried.

Key Takeaways

  • The blog post 18 years ago that brought Hansson together with co-founder Jason Fried, and what compelled Fried to hire him
  • How Hansson invented revolutionary web development framework Ruby on Rails
  • Why it’s never too late to learn how to program
  • The story behind how Jeff Bezos bought a minority, no-control stake in Basecamp in 2006—and how Hansson feels about it today
  • Basecamp’s philosophy on growth
  • His latest book, It Doesn’t Have to Be Crazy at Work, and why he hopes to challenge the prevailing narrative about entrepreneurship and growth
  • How Basecamp defines success, even though it doesn’t set goals
  • The disadvantages of large companies
  • How to maintain a strong company culture when your team is remote
Direct download: FP232_David_Heinemeier_Hansson.mp3
Category:general -- posted at: 10:17am AEST

Ditching Growth and Setting Up Camp

How Jason Fried and David Heinemeier Hansson turned their backs on lofty goals and created a profitable tech company quite unlike any other.

Growth is exciting. Sales boosts, climbing revenue, and eager investors are all signs of a happy, healthy company. Right?

Basecamp founders Jason Fried and David Heinemeier Hansson beg to differ. While they rejoice in revenue and profit as much as the next set of tech company founders, they define success a little differently.

Instead of chasing arbitrary growth goals and deadlines, they simply aspire to do their very best work day in and day out.

Instead of always expanding their line of software products, they double down to perfect the one they already have.

Instead of scrambling to hire more people when revenue is climbing, they enact a hiring freeze so as to not lose sight of their mission.

Critics might call their approach too timid. Others call them brilliant. Fried and Hansson don’t care much either way. They’ve followed the startup road less traveled and have pitched sturdy camp at the end of it—all while remaining profitable and highly respected.

Today, Basecamp is one of the leading project management and team communications tools on the market, while boasting remarkable employee satisfaction. The duo also have a new book out explaining their unique take on startups and how they’ve found success.

Setting Up Camp

The origins of Basecamp date back to 1999, when Fried started 37Signals as a web design company. It’s since transitioned to a web development company, specializing in project management and team communication software, and became Basecamp in 2014.

The transition to web development happened in the early 2000s, when young Danish developer Hansson responded to Fried’s blog query about PHP. Hansson had been a fan of 37Signals for years and jumped at the chance to help out. After a handful of emails, Fried decided it was easier to hire Hansson as a programmer than learn to code himself.

The firm created Basecamp’s flagship software product in 2004 and drummed up 45 customers in its first year. The idea was simple, but met an important need in the modern workplace: It allowed for real-time, remote communication to help teams identify what needs to be done (and when) and work together smoothly and efficiently. In the following years, the pair saw their product achieve steady growth, which also caught the eye of venture capital and private equity firms.

Even so, working with investors never made sense to Fried and Hansson. They didn't want to sell any control of Basecamp or be forced to exit their business on someone else’s timeline. But they did need money to continue developing Basecamp and its products.

In 2006, the pair was approached by Jeff Bezos himself. In exchange for a yearly dividend payout (but without making any other demands or staking any other claims to the company), Bezos purchased a piece of ownership and became a member of Basecamp, LLC. This arrangement worked well for Fried and Hansson as they didn’t have to sell control of their business to raise money, and the purchase was a lucrative investment for Bezos.

“[After Bezos’s investment], the appeal of selling the company subsided and allowed us to pursue our mission to build a wonderful company to work in for the long term,” Hansson said.

Fried and Hansson maintain a fiscal relationship with Bezos, but that’s about it in terms of what they’ve taken from the richest man in the world. As for perspectives on growth, productivity, and culture, Basecamp has blazed a trail of its own.

It Doesn’t Have to Be Crazy at Work

Or does it? Fried and Hansson’s latest book introduces a new perspective on the modern-day entrepreneurial hustle. They published this book to “[send] out an alternative beacon,” Hansson says.

The cover of It Doesn’t Have to Be Crazy at Work features a big red “X” crossing out words like "packed schedules,” "80-hour weeks," and "overflowing inboxes."

Sadly, a lot of today’s business literature and role models celebrate crazy schedules, packed days, and little sleep. “[This has] been a predominant narrative for quite a long time,” Hansson says.

Pushing back on the norm, It Doesn’t Have to Be Crazy at Work argues that this kind of lifestyle isn’t healthy, sustainable, or necessary. “You can do great work in a normal eight-hour day and 40-hour week,” Fried says.

Basecamp’s culture and success is a testament to this ideal. The 20-year-old business has been profitable every single year since it started, and the company’s 50-plus employees work a totally normal schedule. “At Basecamp, it isn't crazy at work,” Hansson says. “Crazy at work should be an exception; it shouldn't be the norm, and certainly not be an aspiration.”

The (Mis)Guiding Principles of Goals and Growth

As of 2018, Basecamp has more than 100,000 companies utilizing its software. But unlike most tech companies, that number goal doesn’t dictate their work.

“We have no interest in building [our] company to a certain amount of dollars or size,” Fried says.

In Silicon Valley, businesses often feel the need to dominate industries and destroy the competition. Basecamp isn’t driven by those criteria, and they’re definitely not driven by constant growth or lofty goals. “We've always felt that we don't need to chase anything but profit and quality...and quality of life, for both our employees and customers,” Fried says.

To Fried and Hansson, it’s much more about running a sound, sustainable, profitable business. Instead of prioritizing OKRs or various other acronyms, they simply focus on doing the very best work they can every day.

“The idea that a goal should be driving you harder. ... I don't understand why that'd be,” Hansson says. “People forget that goals are figments of their imagination.”

He explained that as a primary indicator of what success should look like, goals are not helpful. They’re arbitrary measures of success or failure…and falling short of one can make you feel bad when you shouldn’t.

Moreover, goals are often determined by looking at others. “They become this death of enjoyment by comparison,” Hansson says.

Basecamp does set a few loose, top-level goals, such as “build a good product,” “create a great place to work,” and “treat customers with dignity, honesty and kindness.”

But what about specific metrics, like sales, retention rate, or customer success? “We can look at [those] numbers, like retention rate, renewal rate, etc., to see how well [Basecamp is] working,” Fried says. “But we don't have goals around those numbers.”

To measure the success of their product, the team simply uses it themselves. They actually use it more than any other company. By employing their own product and improving it every day, they’re able to better understand their customer experience. And when it works better for them, it works better for their customers.

“We judge our success by how we feel about our work, and the customer reaction and reviews,” Fried says. They ask themselves, “Are we proud of what we did today? Are we proud of the way we did it? And ultimately, do customers like the product?”

How Basecamp Approaches Success

Such a nebulous approach to growth and goals is sure to make employees feel adrift, right? One might think so, but the opposite is actually true for Basecamp employees, they say.
“[We believe] work should be a pleasurable experience,” Hansson says. “Success to us means we set our own agenda, control our own destiny, and have a sense of independence,”

There are very few meetings at Basecamp, and that’s not just because they are a mostly remote workforce. The company does have an office in Chicago, but even those who live nearby only come in a few days a week.

“We’re a writing-heavy company,” Fried says. Instead of insisting on weekly stand-ups or organizing project check-ins, the pair encourages their employees to chronicle all updates, ideas, and thoughts. This gives employees a chance to ponder what they’ve read and formulate thoughtful responses—instead of presenting an immediate reply the way you’d expect in meetings and boardrooms.

This notion of slow, delayed communication inherently pushes back on live chat, an up-and-coming trend in today’s tech companies.

“The idea of chat as a primary means of communication inside of a company, I believe it to be a very toxic idea,” Fried says. He argues that outside of social communication and quick check-ins, keeping in touch with chat can cause a massive distraction for employees.

“I think that, right now, chat is why work is more hectic for more people,” Fried says.

Like they contend in It Doesn’t Have to Be Crazy at Work, Fried and Hansson don't expect, require, or support a culture that's “always on." They routinely monitor for “overwork,” and occasionally have to gently remind employees that late-night emails or mid-weekend product updates aren’t necessary. In fact, they’re frowned upon.

We don't reward late, hard overwork,” Fried says. “We’d rather reward someone who works normal hours and gets a lot done…someone who protects and manages their time. There’s no celebration of long hours here”

Basecamp hasn’t always been like this, though. Some of the values have been around since the beginning, but the company has spent the last 20 years constantly tweaking the way they work.

One major change Fried and Hansson have made is the way Basecamp gets projects done. The company used to work with absolutely no deadlines, then started implementing three-month work periods. Today, they work within six-week cycles.

The team doesn’t do anything they can’t complete in six weeks. When asked if that sort of deadline adds pressure, Hansson is quick to respond: “It could if you don't approach the idea of the budget as a tool. It’s there to shape your decisions and guide you. Budgets make it easier to say ‘no’ or ‘not right now.’”

Fried and Hansson are less interested and impressed by the results of work done with unlimited resources or timeframes. In the past, working with no deadlines left each project open-ended. It was harder for developers to say “no” or know when to stop working.

Each six-week time budget forces employees to make decisions and weigh tradeoffs. “That's what's enjoyable about product development,” Hansson says.

By implementing changes such as these, Fried and Hansson have noticed that Basecamp has become a calmer company. While the pair conducts employee audits twice a year, they mostly take the pulse of employee success and satisfaction by staying close to each team, which isn’t hard given the company only has 53 employees.

“We're constantly seeing [our employees’] work and talking to people,” Fried says. “We have a really good sense of how things are going. It’s pretty obvious when someone’s not doing well.”

How does their remote culture affect this? It doesn’t. The team has a few in-person outings each year—when they gather everyone in their Chicago office—but even those are spent “reconnecting and recharging social batteries,” as Hansson explains.

Basecamp’s culture is simply based on trust and harmony between words and actions.

When asked about the challenge of building a culture with a remote workforce, Hansson says, “[That is] based on a misconception of what culture actually is. Our definition is that culture is repeatable actions, what you actually do.”

Fried and Hansson do instill specific values and principles throughout the company, but Basecamp’s culture arises when they live up to those words. “Nothing transmits culture more than seeing actions, especially during hard times.”

He also believes that a remote workforce is better situated to building a strong culture because such culture is derived even more explicitly from the actions you actually take and the shared writings you commit, given there’s no office or in-person meetings to do the work for you.

The numbers behind Basecamp’s culture and employee satisfaction are off the charts. The industry average for employee turnover is about 18 months. Of the 53 employees currently at Basecamp, the average length of employment at Basecamp is 5.8 years. Eight employees have been there over 10 years, and almost half have been there over seven.

“Basecamp employees stick around a long time, even in traditionally high-churn positions,” Hansson says.
The company has recently enacted a hiring freeze, announced by Hansson in a post on their blog, Signal V. Noise, aptly titled, “Things are going so well we’re doing a hiring freeze.”

In the spirit of constraints, they’ve capped their headcount and are doubling down on good, effective work.

“We have no love for size,” Hansson says. “Big companies can’t solve small problems. The bigger they are, the more divorced and less able they are to relate [to customers]. More layers of management and indirection only harm empathy and kindness.”

Key Takeaways

  • How his latest book, It Doesn’t Have to Be Crazy at Work, is pushing back on Silicon Valley’s excessive work culture
  • Why chasing growth in your business can blind you
  • Why Basecamp doesn’t set OKRs, KPIs, or any goals of the sort
  • How to know if you have the right people on your team
  • How to ensure your remote team is doing their best work
  • The evolution of Basecamp’s culture and work processes over time
  • The difference between deadlines and “dreadlines”
  • When Slack can be toxic to your company
  • Why in-person communication isn’t as important as you think (and might even be detrimental)
  • How to eliminate meetings once and for all
  • The story behind selling a piece of ownership to Jeff Bezos
Direct download: FP231_Jason_Fried.mp3
Category:general -- posted at: 9:41pm AEST

Most of Foundr’s podcast episodes are one-on-one chats, usually focusing on a particular foundr or their business. This time around, we were fortunate enough to sit down, in person, with two startup icons, and explore some of the most important facets of running a business.

Oli Gardner and Ryan Deiss are both digital marketing pioneers who have grown their online businesses to millions in revenue. Gardner, the instructor of our Landing Page Formula course, co-founded landing page builder Unbounce in 2009. Deiss, a serial entrepreneur, founded DigitalMarketer in 2011.

Not surprisingly, this turned out to be a fascinating conversation, in which Gardner and Deiss share both similar and differing opinions on everything from branding to hiring.

For example, both founders insist that creating core values is an important business practice that will inform your branding and your decisions. “I have had more businesses come close to failure because of too much opportunity,” says Deiss, who adds that having a mission makes it easier to know when to say no.

In addition, as both Unbounce and DigitalMarketer grow, Gardner and Deiss have each honed their strategies for hiring top talent. The details might surprise you, as one of the two companies doesn’t even allow candidates to submit a resume (it’ll get thrown out).

Listen in as Gardner and Deiss join Foundr for this lively chat in Barcelona, where they share their hard-learned lessons from growing online businesses and the sacrifices they’ve made along the way.

Key Takeaways

  • How to build a great brand
  • The one thing that keeps your customers coming back again and again
  • Why creating core values for your company isn’t just a nice thing to do, but a necessity
  • The latest interaction and design trends—and which ones you should steer clear of
  • Why community is the new brand and how to build a community that boosts your business
  • The biggest opportunity in ecommerce right now
  • How to stay relevant in a changing content marketing landscape
  • Sure-fire tactics for hiring and vetting top talent
  • The big sacrifices they’ve had to make as founders
Direct download: FP230_Oli_Gardner_Ryan_Deiss.mp3
Category:general -- posted at: 3:53am AEST

NEW COURSE ALERT: Entrepreneur, we wanted you to be the first to know that we’ve collaborated with Arman Assadi to bring you our brand new copywriting course. Learn the copywriting secrets behind 11 seven-figure product launches, taught by Arman himself.

Arman’s broken it down into a 10-step framework that he’s proven with his clients time and time again. He’s even going to give you templates, formulas, and how-to guides so you can start converting customers like crazy.

If you’re tired of seeing ZERO sales for all the hard work you’ve put into your amazing product—then you NEED to learn the power of copywriting. We’re opening the doors to this course soon for a limited time only, and we want to see you there. Be sure to get on the FREE waitlist so you don’t miss it!

Key Takeaways

  • The “crisis of meaning” that drove Assadi to leave his job at Google, book a trip to Cuba, and pursue freedom as a solopreneur
  • How Assadi became a self-taught copywriter and began working with the likes of Neil Patel, Lewis Howes, Jason Silva, and Lori Harder
  • What you should (and shouldn’t) do if you want to find your unique voice as a copywriter
  • The key to writing high-converting copy and why every entrepreneur should learn the basics
  • The story behind Assadi’s latest business and how it created the most-funded planner in crowdfunding history: EVO Planner
  • What’s next for Project EVO and how it’s helping entrepreneurs and creatives find fulfillment in their work
Direct download: FP229_Arman_Assadi.mp3
Category:general -- posted at: 5:08am AEST

Serial founder and VOIP pioneer Alex Mashinsky has founded eight companies and raised more than a billion dollars in collective funding since his entrepreneurial start in the 1990s—and he is showing no signs of slowing down. Mashinsky is the founder of Celsius, which allows users to earn interest on and borrow dollars against cryptocurrencies.

While Mashinsky wants his company to succeed, he sees much more at stake here than just his entrepreneurial resume.

Mashinsky is devoting his latest startup to taking on the world’s financial systems and driving the mass adoption of cryptocurrencies. Subverting the “big guys”  has been a common theme throughout Mashinsky’s career, starting with helping AT&T develop some of the first international VOIP systems, and now fighting to decentralize the world’s banking systems.

According to Mashinsky, “This is the biggest battle that I’ve fought in my life. I fought with the phone companies…in the 90s. This is 10 times worse.”

Listen in as Mashinsky reveals the details of his entrepreneurial journey's highs and lows, his dedication to educate the world about cryptocurrencies, and entrepreneurial lessons only an eight-time founder can teach.

Key Takeaways

  • How the 2008 recession took down his ride-share company (that was more popular than Uber at the time)
  • Why Mashinsky is so passionate about educating the world on cryptocurrencies
  • 4 entrepreneurial lessons to guide your business journey
  • The mindset shift that led Mashinsky to focus on mass adoption of cryptocurrencies
Direct download: FP228_Alex_Mashinsky.mp3
Category:general -- posted at: 6:53am AEST

Frank Body co-founder Erika Geraerts left her $20 million coffee scrub company to invent a new category within the beauty industry.

She's now on a mission to empower young girls everywhere to feel more comfortable with themselves. According to this forward-thinking founder, the world has enough makeup products, and what the industry really needs is better products with better brand messages.

Geraerts thinks makeup should be fun, not a necessity or a chore, which is one reason she called her company Fluff. But there's nothing frivolous about her approach to business. Geraerts is filling a void in the cosmetics industry and raising up the self-esteem of women globally in the process.

In this compelling video interview, Geraerts reveals why she decided to leave her booming skin care company, and what she sees on the horizon for Fluff. She also talks about her strict manufacturing process, her focus on sustainable products, her unique customer development process, and the distinct way the company creates online content.

Key Takeaways

  • How Geraerts chooses manufacturers to create her products
  • The company’s unique customer development process for finding out what types of products solve her customers’ problems
  • Why she won’t be focusing on traditional influencer marketing to promote her products
  • Fluff’s unique website launch strategy and how they work with their customers and freelancers to curate all of their content

 

Direct download: FP227_Erika_Geraerts.mp3
Category:general -- posted at: 2:14am AEST

 

Bobbi Brown has spent her life helping people embrace who they are. Embracing herself—strengths and weaknesses—has also proven to be a powerful career strategy.

The veteran makeup artist and founder of the eponymous cosmetics line built her empire on the belief that people are most beautiful when they love who they are. This natural approach to makeup went against the over-the-top aesthetic of the 1980s—which, at the time, critics said would be her undoing—and people couldn’t get enough of her.

“My hope is to help women everywhere understand that being who you are is the secret to lasting beauty,” she writes in her book Pretty Powerful.

Powered by that philosophy, Brown became known as a makeup artist to the stars, touching up the faces of Carla Bruni, Katie Holmes, and Michelle Obama, to name a few. With characteristic warmth, she treats even the biggest of celebrities like old friends. A video for HELLO! Canada shows Brown in the back seat of an Uber with actress Meghan Markle, dishing out makeup tips and jamming to Biggie Smalls. As they part ways, Brown tells the now-Duchess of Sussex, “Text me later.”

Whether she’s getting celebrities ready for their close-ups or hobnobbing with the rich and famous in the Hamptons, Brown remains refreshingly down to earth. “One of my best attributes in life…is I'm incredibly naive,” she tells Foundr. “I think everything is going to work out.”

And for Brown, a lot of it has. She scored big with her first job out of college as a freelance makeup artist, catching the eye of Vogue, which hired her for a cover shoot with Naomi Campbell. In 1991, with just 10 lipstick shades, Brown launched a cosmetics line that she would sell to Estée Lauder four years later, and continue to work at for more than 20 years after that. When Brown stepped away in 2016, she left behind a billion-dollar company. And in the midst of all that, she met the man of her dreams, Steven Plofker, to whom she has been married for 30 years.

Yes, she has had an illustrious life and career. But one look at her latest projects makes it clear—Bobbi Brown is just getting started.

On Being Boss Again

When she left Bobbi Brown Cosmetics (which she calls her “first baby”), the beauty world was stunned. But the company was no longer in her direct control, and she was eager to be back at the helm.

“I realized that it was time for me to be the boss again because that's really what makes me happy,” she explains. “I like to be in charge, and I like to work with really fun, cool people to create things.”

And that’s exactly what she’s been doing. Her first project after leaving the company was to write and promote a book, Beauty From the Inside Out, a lifestyle guide that details recipes, nutrition recommendations, and confidence-boosting tips. This was a nod to Brown’s aspirations to broaden her scope from cosmetics to general health and wellness.

“I don't like a lot of makeup,” says Brown, who is an outspoken opponent of contouring, using darker shades to “reshape” parts of your face. “I don't believe women need a lot of makeup. And I think the healthier you are, the better you feel and the better you look.”

In 2017, Brown opened Just Bobbi lifestyle concept shops inside of Lord & Taylor department stores, where she curated her favorite wellness and beauty products for the public to peruse.

Earlier this year, she launched a line of wellness products, Evolution_18, on TV shopping network QVC. She also runs a film and TV studio, 18 Label Street, and her own line of eyewear, Bobbi Brown Eyewear.

And in an unexpected move, she partnered with her husband to breathe new life into a 1902 historic landmark and launch The George, a boutique hotel in their hometown of Montclair, New Jersey.

As if that weren’t enough, she’s got a podcast in the works.

With so many projects, how does she maintain her focus and a sense of cohesion? “It all works together for me,” Brown says, “because it's pretty much authentic, and it's marrying, finally, really what I believe in.”

Why She Never Wants to Build Another Billion-Dollar Brand

With Brown’s hard-earned success and elite status comes perhaps the greatest privilege any entrepreneur can obtain: the power to say no to otherwise enticing opportunities. She says many of her friends in venture capital have asked her, “How many millions do you want?” in an eager bid to invest in her projects—regardless of what those projects are.

“Look, it's very tempting,” Brown says of the investment offers. “But I don't want it.”

For entrepreneurs who have pounded down the doors of VCs hoping to snag just one investor, that outlook may be difficult to understand. But for Brown, it’s all about freedom.

“I don't want to have to report to anyone,” she says. “I don’t want to sit in meetings.”

While many tout the venture model of forgoing profitability now in order to borrow money, spend it on growth, and sell the company later, that’s not Brown’s style. If she were to sell 500 bottles of vitamins, for example, she says she would reinvest the profits by ordering 1,000 more bottles and keep growing incrementally from there.

“I'm very simple-minded,” she says. “I know it makes no sense, but I really do believe in making a profit.”

So, for now, she’s content to bootstrap, even if that means slower growth or a smaller business. “I never want another billion-dollar brand. … I never want to go that big again because the headaches that come with it are not worth the rewards.”

Reflecting on the expansion of Bobbi Brown Cosmetics, she calls the first 15 to 17 years “amazing,” but says that as the company grew, her control over it diminished. “I'm not the boss anymore,” she says, “which is why I'm not there.”

Beauty, Glam, and Instagram

So if Brown is hesitant to grow her new businesses too big or too fast, and still wants to be able to call the shots, what is her plan for growth? A lot of it revolves around working her connections—especially the connection to her audience.

Back when Brown launched her career as a professional makeup artist, and even later as a cosmetics line founder, there was no such thing as social media or ecommerce. To get her products off the ground, she started mailing out lipsticks until one day, a New York department store agreed to carry them. In the digital age, when brands have direct access to consumers online, Brown is thriving.

“The internet is an amazing place for people to go on and really look and find the community they need,” she says. “Whatever you're going through, there is a support group for that. There are people teaching and empowering.”

Brown is active on Instagram (in fact, she manages at least four accounts), where you can find anything from the announcement of her latest probiotic product to photos of her recent trip to Paris. On Facebook, she hosts a weekly live broadcast where she interviews everyone from Gary Vaynerchuk to her Aunt Alice. And the best part? These episodes don’t cost her a thing; they’re shot on her smartphone.

“There are so many ways for people to start their own brands,” she says. “There's a lot to teach and a lot to learn.”

Making It Up as She Goes

By this point, Brown may seem unstoppable. But she’ll be the first to tell you that accepting her weaknesses has made her a stronger entrepreneur by forcing her to embrace her strengths, and get help with everything else. It’s similar to her approach to cosmetics. As a makeup artist, Brown refuses to hide clients’ “flaws,” preferring instead to accentuate their natural beauty.

“It's such a sign of strength for someone to know what they're not good at,” she says. “And I think a lot of…people starting to be entrepreneurs think they could do everything, and you can't.”

For instance, Brown doesn’t know how to type—but she’s written nine books. At times, she gave an assistant her handwritten notes and had them transfer them to digital; other times, she had writers interview her and take the information down for Brown to edit. “What you're not good at, find someone that is and tell them what to do.”

Her sharp sense of self-awareness was honed from a young age. Growing up, she struggled in school and didn’t have access to tutoring. “Either my parents punished me or they said, ‘Oh well, she'll never be a secretary.’ They were right…because I dropped out of typing because I couldn't figure it out.”

From those early experiences, she learned a valuable lesson. “I had to figure out, like, almost coping mechanisms. I don't know if I had learning disabilities. I wasn't good at something, but I knew I had to do this.”

When conforming to convention didn’t work for her, Brown would develop her own distinct approach. For example, the first time she wrote a book, she followed the rules: write the book, edit it, then source the photos. But it was extremely difficult for her. So with her last couple of books, she did photo shoots first, then put the book together based on the photos, then had the writers write. “I drove my publishers crazy,” she says. But for her, it worked better.

So if there’s something essential you don’t know how to do? “Figure it out,” Brown says. “That’s my only advice.”

Happiness Never Goes Out of Style

In many ways, Brown has been a contrarian in an industry that is notoriously cookie-cutter. And maybe that’s been the key to her success. While she used to compare herself to the supermodels she worked with, she’s learned to be comfortable in her own skin. When people told her things had to be done in a certain way, she forged ahead with her own process and succeeded. But even with her many accomplishments, Brown doesn’t subscribe to any notion of perfection or “having it all.”

“I'm not tall and blond and athletic, which I always wanted to be,” she says. “I can't sing. I can't draw. But I have a sense of humor, and I have a lot of friends. I've been married 30 years…I have three amazing boys that I adore…and I've been able to be an entrepreneur.”

“Is that having it all?” Brown says. “No—there’s no all. But I'm happy with what I have.”


Key Takeaways

  • Why Brown never wants to create another billion-dollar brand
  • Her philosophy on what makes entrepreneurs strong
  • What she believes is the ultimate secret to lasting beauty
  • How to accept your weaknesses as an entrepreneur and forge ahead in spite of them

 
Direct download: FP226_Bobbi_Brown.mp3
Category:general -- posted at: 6:15am AEST

Welcome to part two of our two-part podcast series that’s shining the spotlight on successful entrepreneurs who hail right from our very own Foundr community!

If you haven’t listened to part one featuring Gavin Symes, you can check it out right here.

Today, we talk with Danielle Roberts and Shea Kucenski, courageous entrepreneurs who started a marketing agency while working full-time jobs. Roberts and Kucenski took all the action steps laid out in the Consulting Empire course and in two months took their business from slow and stagnant to closing 20% of all proposals, doubling their earnings, and reaching their first $10,000 month.

In this inspiring interview, you will hear about Roberts and Kucenski’s journey to success, how they overcame their perfectionism and fear of failure, and how they land high-paying clients while managing busy schedules.

We are extremely proud of Danielle and Shea’s achievements and we are happy to share their amazing story with you!

ATTENTION: If you want to learn how to start and scale a service-based business like Danielle and Shea, whether you are a consultant, coach, or freelancer, agency founder Sabri Suby reveals all of his golden strategies (the exact ones he used to scale from zero to $10 million) in our Consulting Empire online course.

We only open enrollment a couple of times a year for a limited time, and it's open for just one more day this week! Check out the Consulting Empire course before we close the doors again.

Key Takeaways

  • How to push past the fear of failure and start moving the needle for your client-services business
  • Roberts and Kucenski's main focus that helps them seal the deal when they prospect for clients
  • How they manage their busy schedules (they both have full-time jobs) and keep the business running smoothly
  • How to get started consulting or freelancing and get your first client
Direct download: FP225_Danielle_Roberts.mp3
Category:general -- posted at: 12:48am AEST

The Foundr community is full of passionate people from all walks of life, in the trenches daily doing what it takes to make their startup dreams a reality. In this week’s podcast, we want to highlight one of these entrepreneurs we’re especially proud of—Gavin Symes of The Foundry Group.

In part one of this two-part podcast series, we talked with Consulting Empire student Gavin Symes, who advanced his business growth and management skills to create a profitable consulting business.

Symes took all the action steps laid out in the Consulting Empire course—from validating his service to developing a lead-gen machine—and built his consulting business from scratch. Three-and-a-half months into the course, he closed 10 clients and generated over $50,000 of monthly revenue. He plans on scaling to $1 million this year and then to $10 million in three years.

In this inspiring interview, you will hear about Symes’ own journey to success, the biggest problems most businesses face when scaling, and how to set up processes to overcome common business growth challenges.

We are extremely proud of Gavin’s achievements and we are happy to share his amazing story with you!

ATTENTION: If you want to learn how to start and scale a service-based business like Gavin, whether you are a consultant, coach or freelancer, agency founder Sabri Suby reveals all of his golden strategies (the exact ones he used to scale from zero to $10 million) in our Consulting Empire online course. We only open enrollment a couple of times a year for a limited time.  Get on the free VIP waitlist here to be one of the first we notify when we re-open!

Key Takeaways

  • The top problems most entrepreneurs face as they scale their businesses
  • The one thing that can derail your business if you let it (it has nothing to do with sales or customers)
  • The very first thing to do if you want to start a freelance or consulting business
  • How to create business playbooks to fast-track your growth
Direct download: FP224_Gavin_Symes.mp3
Category:general -- posted at: 2:49am AEST

New to the US from Pakistan, Syed Balkhi was a lonely and isolated 12-year-old. Unable to speak English fluently, he took to communicating with new friends—computers—and quickly found comfort interacting with these non-human companions. Soon Balkhi was learning how to code and build websites, and that very same year he made his first dollar from a website he created.

Now 27, Balkhi is the founder of WPBeginner, the first and largest WordPress resource website in the world, and co-founder of many accompanying businesses. He was also named a top entrepreneur under the age of 30 by the United Nations, his websites receive millions of monthly pageviews each month, and his software runs on nearly 8 million sites serving billions of monthly impressions.

Listen in as Balkhi takes you through the early years of his entrepreneurial journey and how, brick by brick, he built his empire.

Key Takeaways

  • How Balkhi decides which versions of existing software to acquire and improve
  • Why managing four products independently helps his team increase focus and output
  • How to build a business, one small step at a time
  • The key factor behind his companies' explosive growth
Direct download: FP223_Syed_Balkhi.mp3
Category:general -- posted at: 6:57am AEST

 Tobi Skovron, Founder, CreativeCubes.co

Dog toilets and co-working spaces? An unlikely pairing. But if you talk to Tobi Skovron, you'll find they have one thing in common—they inspired him to create two passion-filled businesses and realize his dreams of becoming an entrepreneur.

Skovron walked away from a promising career in medicine to pursue entrepreneurship, even though he had no idea what business he wanted to run. It wasn’t until Skovron got a dog that he came upon an idea that would take Australia by storm—an indoor dog toilet called Pet Loo. Piggybacking off of the success in Australia, Skovron decided to expand into the US market. He quickly faced a lot of challenges, however, since he made the move right as the 2008 recession hit. Skovron lost half his money right away.

Starting over in Los Angeles, he realized the spare bedroom in his Venice Beach apartment was not the ideal environment for him to breathe life into his US expansion, so he joined a co-working space to rekindle his inspiration. There, Skovron realized a new passion for this collaborative environment, which ultimately led him to his next project.

Skovron sold Pet Loo and started CreativeCubes.co, a hotel-like co-working environment that houses a curated community of passionate people. We here at Foundr have even used CreativeCubes.co to shoot many of our course videos!

These days, Skovron's less interested in financial return, and more interested in providing quality experiences and fostering an environment of positivity and creativity. Listen in and get inspired by this journey from aspiring entrepreneur to two-time founder.

Key Takeaways

  • How the idea for Pet Loo became a reality (it was his wife's idea)
  • The 10-year journey of designing, manufacturing, marketing, and selling Pet Loo
  • How Skovron’s love of the co-working landscape led to the creation of his second successful product
  • Why Skovron won’t scale his business for the sake of scaling
Direct download: FP222_Tobi_Skovron.mp3
Category:general -- posted at: 10:09am AEST

Welcome to our newest podcast format, video interviews! You can expect more of this format in the coming months. Subscribe to our YouTube channel here to be notified when we publish new videos.

Today I had the pleasure of sitting down with the co-founders of Quad Lock, a mounting device to securely attach your smartphone to your bike, car, motorcycle, arm or in any situation where you need a hands-free moment. These guys are killing it with $9 million in yearly earnings in only four years!

This was a phenomenal interview, as Peters and Ward gave us 45 minutes of pure gold on how they built a strong brand reputation and high-quality product, how they manufacture their products in China, how they got started as a simple Kickstarter project, and so much more.

They also discuss brand longevity, how to become trendsetters, and how they overcame their biggest scaling challenges. If you want to learn how to build a long-lasting brand and scale your physical-products business, this is an interview you don’t want to miss!

Key Takeaways

  • What you need to build a physical-products brand with a strong reputation
  • Why Kickstarter is a good way to introduce your brand to the market, as long as you do it right
  • How to get started and maintain manufacturing out of China
  • Quad Lock's biggest challenges around scaling, and how they have overcome them
  • Quad Lock’s philosophy on hiring A-players
Direct download: FP221_Quad_Lock.mp3
Category:general -- posted at: 12:37am AEST

Carly Zakin and Danielle Weisberg started their business as good friends on a couch, with nothing but their laptops and a healthy dose of hustle. Today, their millennial women-focused media company theSkimm serves seven million daily subscribers, employs 70 people, and boasts more than 30,000 enthusiastic brand ambassadors.

The company also just closed a round of Series C funding led by GV (formerly Google Ventures) and a group of mainly female investors—including the likes of Shonda Rhimes, Tyra Banks, and Spanx founder Sara Blakely.

Weisberg and Zakin have maintained a close friendship and strong collaboration throughout their six years in business. This dynamic forms the backbone of their company and sets the tone for daily operations, which is largely focused on supporting and empowering women.

In this interview, learn about the early days of theSkimm, the power of community and connection, and how the brand monetizes its content to build a sustainable media business.

The company publishes news that fits into the daily routines of its members, continually nodding to its mission statement of making it easier for people to live smarter, more connected lives. But if you ask us, these powerful founders are the smart ones, effectively proving the mantra, “We are all stronger when we work together.”

Key Takeaways

  • How and why they waited two and a half years to monetize their community of loyal followers
  • How they monetize their content with multiple income streams to build a sustainable, well-rounded business
  • Details of the Skimm’bassadors program and why it has grown so rapidly
  • Zakin and Weisberg’s top tips for growing a content-based business
Direct download: FP220_The_Skimm.mp3
Category:general -- posted at: 1:15am AEST

Mike Michalowicz appeared to have everything an entrepreneur could want—big companies and lots of revenue coming in. But things aren’t always as they seem. As Michalowicz was high on fleeting indicators of success, his businesses were leaking profits. “I got caught up in the vanity metrics…how big my business was revenue-wise and how big my business was people-wise,” Michalowicz says.

After feeling the sting of and two failed investments and losing millions, Michalowicz found himself struggling with depression—along with a realization that ignorance and arrogance were a deadly combination. Thankfully, with support from friends and a rekindling of his love of writing, Michalowicz was able to pull himself out of the ashes and rebuild his career—this time with heart and soul.

Michalowicz used writing as a way to find solutions to all of the biggest challenges he faced as a founder. His books Profit First, Pumpkin Plan, and Clockwork tackle managing cash, business growth, and automating a company, respectively. His next book will focus on how entrepreneurs can serve a greater purpose and make an impact on the world.

Listen in and get inspired as Michalowicz gets brutally honest about his own struggles, and shares years of lessons learned to empower other entrepreneurs.

Key Takeaways

  • The actions that led Michalowicz to lose millions and hit rock bottom
  • How Michalowicz found his niche and rebuilt his career after 10 failed companies
  • Why working too hard can signal a lack of efficiency
  • How to manage cash and avoid spending money you don’t have
Direct download: FP219_Mike_Michalowicz.mp3
Category:general -- posted at: 2:28am AEST

“It took me 10 years [to create my own business], because I didn’t have the courage to start. But I still had this belief that one day I would start it.”

Fortunately for Aytekin Tank and 3.7 million happy users, he ultimately did start that business—JotForm, a profitable online form builder that houses 12 million forms; integrates with Paypal, Salesforce, and Dropbox; and spans two continents.

It took Tank a decade to build that business, but he couldn't care less. In an entrepreneurial climate where rapid growth and risk-taking are worn as badges of honor, Tank considers his slow growth the reason for his strong company culture and long-term success.

Concerned that your wariness or risk aversion hinders your ability to become an entrepreneur? Listen in and get inspired by Tank’s journey. Anything is possible if you just take the plunge and then keep moving forward—no matter the pace.

Key Takeaways

  • How Tank has been able to grow consistently even though he started with zero management experience
  • The friendly company culture Tank built and why it has become so successful
  • Why Tank believes his slow and steady approach to growth has led to so much success
  • Tank’s three steps to slow and sustainable growth
Direct download: FP218_Aytekin_Tank.mp3
Category:general -- posted at: 6:49am AEST

Scott Belsky, Behance founder, investor, and author of the new book The Messy Middle, is a strong believer in putting in the hard work and then finishing strong. His nine-figure exit from Behance is a testament to this tenacity and determination.

Behance came with its own set of challenges, but Belsky learned over the years that when it seems like things are falling apart, it could mean victory is right around the corner. Your near-meltdown might just be your “messy middle," and sometimes being successful simply means sticking together as a team long enough to figure it out. A labor of love will often work out in the end, even if it's not how you expect.

In this thought-provoking interview, Belsky shares his own “messy middle" from his time with Behance, and some of his best wisdom on product-market fit, perseverance, and startup culture. We were thrilled to get the chance to talk to Scott. There’s a ton of gold in this interview, so don’t miss it!

Key Takeaways

  • Two guiding principles on whether to stick it out or shut it down
  • Why Belsky is wary of the MVP craze, and how to balance perfectionism with action
  • Three tips for finding true product-market fit
  • How to create a startup culture that attracts and retains the right people
  • Why Belsky started Behance and what inspired his progress
Direct download: FP217_Scott_Belsky.mp3
Category:general -- posted at: 2:58am AEST

“Ninety-eight percent of landing pages are just plain bad.”

This is what Unbounce founder Oli Gardner declared when he began his public speaking circuit four years ago. A bold statement, but he would know.

As co-founder of the landing page software builder, which pulls in $20 million in annual revenue, Gardner confidently claims he has seen more landing pages than anyone on the planet—nearly 100,000 to be exact. These days, he's leveraging his immense knowledge on the topic to help businesses drive more leads and revenue, through Unbounce and as a speaker.

In this interview, learn about the history of Unbounce, Gardner’s top tips for becoming a better marketer, and his golden advice on how to create a landing page that gets his seal of approval.

ATTENTION: We are excited to announce that Oli has partnered with the Foundr School of Entrepreneurship to teach a powerful course, Landing Page Formula. If you want to learn the principles of conversion-center design and get a step-by-step blueprint on how to construct a high-converting landing page (templates included), Oli reveals his proven framework in this in-depth course.  We only offer open enrollment a couple of times a year, for a limited time. Get on the FREE VIP waitlist here to be one of the first we notify when we open.

Key Takeaways

  • The history of Unbounce and how the company rose to prominence
  • How to make a landing page that impresses Oli Gardner
  • Gardner’s top three tips to becoming a better marketer
Direct download: FP216_Oli_Gardner.mp3
Category:general -- posted at: 12:58am AEST

Stuart McKeown started his entrepreneurial career as a college dropout, had a short-lived stint as a DJ, and then lost thousands of dollars on his first startup attempt. But he's nothing if not persistent. McKeown is now a growth marketing and list-building master and the co-founder of Gleam.io, a growth-focused platform used by more than 20,000 brands a month.

The secret to McKeown’s success? He never believed failure was something to be feared, but rather a means to gather the information he needed to grow.

In this interview, learn how McKeown overcame his setbacks to build a powerful platform and brand, how he establishes work/life balance for himself and his employees, and his top four tips for running a viral competition.

McKeown may not have become a world famous DJ, but by staying true to himself and striking out fearlessly despite unforeseen obstacles, he has built a brand to be proud of—a gleaming beacon of success.

ATTENTION: We are also excited to announce that Stuart has partnered with Foundr to teach an epic course, List-Building Mastery. If you want a step-by-step strategy on how to explode your email list from scratch, get your first 10,000+ subscribers, and scale to 60,000 and more, Stuart reveals all of his proven strategies in this in-depth, tactical course. We only open enrollment a couple of times a year for a limited time. Get on the FREE VIP waitlist here to be one of the first we notify when we open.

Key Takeaways:

  • Four tips for running a viral competition
  • Why building a product that relies on someone else’s infrastructure can spell disaster
  • McKeown’s low-key and casual philosophy on work/life balance
  • How and why failure is necessary for success
Direct download: FP215_Stuart_McKeown.mp3
Category:general -- posted at: 2:22am AEST

Andy Rachleff is not just a product expert; he literally coined the term “product-market fit.”

Wealthfront CEO, former VC backing companies such as eBay, Uber, and Twitter, and technology entrepreneurship instructor at the Stanford Graduate School of Business, Rachleff has a wealth of knowledge on creating and scaling powerful companies. I was excited to have the chance to pick his brain on everything from product-market fit, to how he started his company Wealthfront, to how he hires the best of the best to join his team.

In this interview, you will gain access to a true master, who has enjoyed a long career of investing in legendary companies and now gives back to today’s entrepreneurs and investors. Rachleff started his company Wealthfront, an automated investment service that manages $11 billion in assets, as a way to perform a social good by democratizing sophisticated financial advice. In our discussion, he was kind enough to divulge some of his wins and losses and top lessons learned in his storied entrepreneurial career. Enjoy!


Key Takeaways

  • How to know when you’ve reached product-market fit
  • The process Rachleff follows every time he builds a new product
  • How to know when it’s the right time to launch a new product (or let go of a failing one)
  • How to maintain a close-knit startup culture as the company grows
  • Why perseverance does not lead to success in technology (and what does)
  • What type of people he looks for and the three biggest things that make people to want to join his team

Key Resources From Our Interview With Andy Rachleff

  • Follow Andy on Twitter
  • Learn more about Wealthfront here
Direct download: FP214_Andy_Rachleff.mp3
Category:general -- posted at: 7:40pm AEST

You may know former Moz CEO Rand Fishkin from his characteristic curly mustache, Whiteboard Friday videos, or his SEO mastery. But this interview isn’t about linking, Google rankings, or gray-hat practices. Or mustaches.

In our chat with Fishkin, he opens up about his battle with depression and how it has shaped his past decisions and guided his current ventures. He sympathizes with the many entrepreneurs who have also succumbed to loneliness and wondered why their business success wasn’t enough to make them happy.

Fishkin also talks about his new book, Lost and Founder: A Painfully Honest Field Guide to the Startup World. In it, he shares the conversations entrepreneurs have about their challenges and hardships, whether personal or in their businesses. Fishkin also shares details on his new software project and why he decided to venture into another startup.

If you want to be inspired, encouraged, and take away some great advice from a long-time founder, don’t miss this interview. We hope you find it as moving as we did!

Key Takeaways

  • Why striving to emulate Silicon Valley startup culture can negatively affect your business growth
  • How and why Moz’s customer acquisition costs went down after laying off half of his marketing team
  • How to know when to sacrifice profit for growth
  • The dark side of entrepreneurial leadership
Direct download: FP213_Rand_Fishkin.mp3
Category:general -- posted at: 4:26am AEST

We are always blown away by the success stories within the Foundr community, and we take every opportunity we can to shine the spotlight on them.

In today's podcast, I am thrilled to present to you three of our Start & Scale ecommerce course students who are absolutely crushing it! I got to sit down with each one and ask them how they got started with their businesses, what challenges they faced, and what successes they are now enjoying.

You will hear from:

Adam Hendle

Adam is the founder of men’s personal care product line, Ball Wash. Adam started his ecommerce journey only eight short months ago and has already made more than $1 million in revenue.

Shamanth Pereira

Shamanth is a busy mother who created a new leggings product, and put it to the test with a pre-sale Kickstarter campaign. In a short time, she received nearly £50,000 from more than 1,500 backers. Shamanth is in the process of fulfilling those orders and putting her shop online full time.

Monique and Chevalo Wilsondebriano

Monique and Chevalo run Charleston Gourmet Burger, which was already a $200,000-per-month business, but had yet to reach its potential in online sales. Their goal was turn their website into an online store so they could generate more sales. In two months, they earned nearly $22,000 and attracted 9,110 visits to their website.

We couldn’t be happier for these guys and are proud to be part of their journeys. Please join me in congratulating them. Way to go!


Key Takeaways

  • Go behind the scenes to learn how three ecommerce stores became successful
  • Discover the two primary marketing channels Ball Wash leveraged that allowed them to scale so fast
  • How Shamanth conceptualized and developed her winning product idea
  • The learning curve for Chevalo and Monique as they transitioned their product to sell online
Direct download: FP212_SS_Student_Spotlight.mp3
Category:general -- posted at: 11:36am AEST

While he always had a passion for entrepreneurship, Shane Snow started his career as a freelance journalist, and during that time noticed how many of his peers were struggling to market themselves and find work. This frustration fueled his desire to develop the global content marketing platform, Contently. Contently is a unified content marketing solution for the world’s biggest enterprise brands, and it’s also a tremendous source of income for creative freelancers. By Snow’s best estimates, Contently has paid out more than $46 million (and counting) to freelancers around the globe.

As successful as his time at Contently has been, Snow never stopped being a writer at heart, and now he's back at it. He recently hired a CMO for Contently and became “founder-at-large,” relieving himself of the day-to-day management and freeing up his time to reunite with his first career love.

Today, you can find Snow promoting his soon-to-be-published book, Dream Teams, and otherwise sharing his expertise on team building and storytelling for founders. In this interview, Snow shares his journey to the top of the entrepreneurial mountain and back home again, along with his best advice learned from a seven-year reign at Contently.


Key Takeaways

  • The two realizations Snow had that sparked the idea for Contently
  • How Snow transitioned out of his role as founder and returned back to his former love of journalism
  • Snow's counterintuitive advice on team building and how it relates to innovation
  • One of the most important things we can do as leaders and team members to build relationships

Key Resources From Our Interview With Shane Snow

Direct download: FP211_Shane_Snow.mp3
Category:general -- posted at: 10:52pm AEST

Hiten Shah has a killer track record when comes to creating software products. He and his co-founders have built several multimillion-dollar releases, including Crazy Egg and KISSmetrics, and many of their features were the first of their kind to hit the industry.

It might seem like Shah has stumbled onto a secret formula for software-building success. But to him, it’s simply a matter of creating what his audience wants. Solving a problem is the biggest determinant of a software’s success, and Shah builds this methodology into every new piece he creates.

In this informative interview, Shah shares the details behind his process, from planning the software build and ensuring a market fit, to hiring the right people to bring it to life. As an avid mentor and advisor, Shah also answers our own, real world questions about future software builds for Foundr. Listen in and get inspired!


Key Takeaways

  • Learn about Shah’s newest software products to hit the market
  • The secret to building a profitable software product (it starts long before the first line of code is written)
  • How to avoid building something nobody wants
  • When to hire internally and when to outsource when building a SaaS product
  • Where most product managers go wrong during development
  • How to prevent your software tool from getting too bloated and overcomplicated

Key Resources

  • Sign up for Shah's newsletter here
Direct download: FP210_Hiten_Shah.mp3
Category:general -- posted at: 7:47am AEST

It only took six hours for Asher Tan and Ryan Zhou to put together the incubator pitch for CoinJar, a vision for a next-gen personal finance account that would capitalize on the growing interest in bitcoin and other digital currencies.

Five years later, CoinJar is a leading digital currency platform in Australia and the self-proclaimed “fastest way to access your money from anywhere in the world.” CoinJar’s users can spend, send, and trade their bitcoins, dollars, and pounds globally.

Despite the major challenges that come with scaling in a global market, the company has been profitable for the past three years. In this insightful interview, these brave founders share how they overcome scaling challenges, their next products to hit the market, and their top tips for entrepreneurs interested in creating fintech startups. Enjoy!


Key Takeaways

  • The specific challenges that come with scaling in a volatile market
  • Why prioritizing word-of-mouth marketing wins over other advertising channels in this industry
  • The duo's next products to hit the market
  • Tan and Zhou’s top tips for fintech startups
Direct download: FP209_Tan_Zhou.mp3
Category:general -- posted at: 5:17am AEST

For Pura Vida co-founders Griffin Thall and Paul Goodman, a chance meeting with two Native jewelry artisans on a beach in Costa Rica sparked an idea that would forever change their lives. They're now running a rapidly growing brand that not only inspires tremendous customer loyalty, but also promotes products that give back in a big way.

Pura Vida (which means “pure life” in Spanish) has grown rapidly since its inception, but this isn’t the brand’s most appealing aspect. Customers also love the company, because it has provided sustainable jobs to 350+ jewelry artisans worldwide, and donated more than $1.5 million to charities using proceeds from its products.

In this inspiring interview, learn how Pura Vida has leveraged influencer marketing and social media to spread its brand message and create a global movement of loyal customers. Matching creative social strategies with a passionate mission has made this brand a massive success and we are proud to feature them. Way to go Pura Vida!

Key Takeaways

  • The company's unique micro-infuencer marketing program that forms the backbone of their promotional marketing campaigns
  • The monthly subscription club that is the fastest-growing part of the business
  • The strategies behind the company’s high customer engagement
  • How Pura Vida creates a culture and lasting experiences that contribute to customer loyalty
Direct download: FP208_Griffin_Thall.mp3
Category:general -- posted at: 11:00am AEST

I’m excited to share a very special interview with you today! Mitchell Harper has been my long-time mentor and coach and a driving force behind Foundr’s success. I’m thrilled to share his story with you so you can glean some entrepreneurial gold from his experience.

Harper started his entrepreneurial journey as a software developer, building games as early as 12 years old. He built his first businesses in his teens and sold his first company around the time he graduated high school.

Partnering with another developer in 2003, Harper created Interspire, a suite of software tools for businesses, and grew it to $10 million in revenue in four years. The company eventually became BigCommerce, now one of the web's premier shopping cart platforms. BigCommerce has raised $250 million in its short lifetime, recently hit $100 million in annual recurring revenue, and the company is still growing.

While his big career wins might suggest otherwise, Harper says he is risk-averse and doesn’t believe entrepreneurs need to be big risk takers to achieve high levels of success. He prefers taking the safe route and reveals his strategies for building high impact, low-risk businesses. In this inspiring interview, Harper also shares how he battled with depression and what his journey to wholeness taught him about work/life balance.

I’m so privileged and lucky to have Mitch as a mentor and to introduce him to our Foundr family. Please listen in and get inspired by the man who has been an integral part of Foundr’s success!

Key Takeaways

  • Why timing is critical when securing investors, from seizing the opportunity early on to waiting long enough to mitigate risk
  • Mitch’s top book recommendation for entrepreneurs looking to raise capital
  • Why entrepreneurs don’t need to “risk it all” to become successful
  • Mitch’s battle with depression and how he altered his life to avoid burnout and achieve work/life balance
  • The power of an A-player team to grow companies
Direct download: FP207_Mitch_Harper.mp3
Category:general -- posted at: 9:00am AEST

Lynda Weinman sold her 20-year company Lynda.com to LinkedIn for $1.5 billion. What is she doing now? She is reinventing herself and enjoying her new role as a champion of independent film.

Weinman is no stranger to the concept of reinvention. In fact, it's that very spirit of constant evolution that led her to become a trailblazer in the online education space, and to ultimately make a massive exit.

Her journey started with a career in animation and special effects, of all things, and even included running a punk store on L.A.’s Sunset Strip. She continued to pivot, until her creative endeavors eventually led her to education, and a business model that allowed her to teach thousands of laypeople about complex tech topics.

The company started as a brick-and-mortar classroom, but after the economic decline that followed the tragic terror attacks of September 11, 2001, Weinman was forced to take Lynda in a new direction. To weather the economic storm, she transitioned to the online subscription business model of Lynda.com.

Lynda.com’s growth was slow going until social media gained ground in 2006, a movement that helped catapult her company's revenue to $40 million and beyond. Even though Weinman never thought about selling, when the offer came in, she knew she had to pull the trigger.

Working relentlessly on Lynda for the past 20 years and now in her early 60s, Weinman has set her sights on a new course. She's now the president of the Santa Barbara International Film Festival and invests in independent filmmakers using charitable grants. In this interview, Weinman shares the journey that led to her $1.5 billion exit, how and why she has continued reinventing herself, and her top advice for entrepreneurs.

Key Takeaways

  • The emotions that accompany the process of letting go of a 20-year company in three short months
  • Why it may not be wise to focus on churn rate and what to focus on instead
  • Why getting investors can be a wise choice if you are planning on selling your company
  • Lynda Weinman’s three top tips for entrepreneurs
Direct download: FP206_Lynda_Weinman.mp3
Category:general -- posted at: 3:41pm AEST

A health crisis that landed Munjal Shah in the ER turned out to be the catalyst for his next mission: making the world a healthier place.
On the day Munjal Shah started running a 10K race back in 2010, he was on top of the world. Just the day before, he had sold his company to Google, marking his second successful exit.

Then the chest pains started. Shah wound up in the ER, and while it didn’t end up being a heart attack, the incident was a sobering reminder that his own father had had one while in his 40s. It was a wake-up call for Shah, who was 37 at the time. He started focusing on his health, lost 40 pounds, and decided his next entrepreneurial endeavor would make the world a healthier place.

“People always say, ‘Go find your mission,’” Shah says. He’s now the founder of a new and growing insurance startup called Health IQ, which encourages healthy behavior by taking a data-driven approach to its coverage. “I would say my mission found me.”

Key Takeaways

  • The journey that led to two successful exits (one was with Google)
  • The unconventional, non-scalable hiring methods that led Shah to build A-player teams
  • How Shah discovered his mission and how this fuels his startup’s success
  • Shah’s top advice for founders looking to raise a round of financing
  • When and how to pivot: the key to Shah’s successful track record
  • Shah’s top tips for busy entrepreneurs (it has nothing to do with meetings, investors, or customers)
Direct download: FP205_Munjal_Shah.mp3
Category:general -- posted at: 3:55pm AEST

In business, in life, and even behind the wheel of his actual race car, Mike Dillard goes from zero to 60 in the blink of an eye.

In stark contrast to his calm voice and introverted nature, Dillard is a pioneer willing to crash through boundaries and challenge common wisdom. He just prefers to do it through the written word, rather than grand speeches or face-to-face encounters.

The core principle driving Dillard’s pedal-to-the-metal attitude? He deeply believes in the power of one person to change their community, their industry, and maybe even the world. “I approach life with a core belief that anyone can accomplish anything,” his website bio reads. “That not only can one man or woman make a difference, but that it’s one man or woman who always makes the difference.”

Key Takeaways

  • How Dillard leveraged his introverted nature to find success in an extrovert-driven world
  • The biggest crash of Dillard’s career, which cost him $12 million in revenue overnight
  • The one thing Dillard needs to build a business (it has nothing to do with money)
  • The mission and purpose that has guided Dillard (through the bad times) to build the business of his dreams
Direct download: FP204_Mike_Dillard.mp3
Category:general -- posted at: 7:03pm AEST

Dmitry Dragilev has a typical entrepreneurial story, but maybe a little more extreme. Bored in his dead-end, corporate job, he was fearful of ending up like his older, unsatisfied peers. One day, Dragilev read in a magazine about what was going on in Silicon Valley, and up and quit.

He sold everything he owned, hopped in his car, and made his way to California. Equipped only with a knowledge of coding and a drive to succeed, Dragilev had made a decision that changed the rest of his life.

Key Takeaways:

  • Dragilev's unique growth marketing approach for building sustainable, consistent traffic
  • How to build quality relationships with journalists to increase your brand's exposure
  • How Dragilev helped two companies skyrocket sales with two PR strategies
  • The quick website fix that resulted in a two-second improvement in user session time
Direct download: FP203_Dmitry_Dragilev.mp3
Category:general -- posted at: 10:37am AEST

The Comeback Kid

In 2013, Eric Siu bought a failing SEO agency for two dollars. Today, he’s built it into a digital marketing powerhouse that serves giants of the tech industry.

These days, Eric Siu rubs elbows with the internet marketing elite, hosting a popular podcast with online guru Neil Patel, and leading the successful agency Single Grain, which boasts clients like Uber, Amazon, and Salesforce.

But go back about six years, and Eric Siu was just a 25-year-old new hire entrusted with the monumental task of saving a tanking company.

“A month into it, the CEO pulls me aside,” Siu recalls, “and he's like, ‘Eric, you know, 48 people, their families, they're riding on your shoulders right now, and if you can't hit numbers in the next month, we're gonna have to let you go.’”

Siu had taken a job leading the marketing for education startup Treehouse. He loved the product and the team, but he had no idea the revenues were stagnant. It hadn’t hit its numbers goals in the last two years, and when Siu came onboard, the company had only five or six months of cash left in the bank.

“I was like, ‘Oh, man. We're gonna go down, and it's me that's kind of responsible for revenue growth because it's a subscription-based product.’”

After seeing some traction on Treehouse’s YouTube account, Siu took a gamble and put all the company’s budget into YouTube advertising. This was 2012, and Facebook ads hadn’t quite taken off. And for Treehouse, which teaches video courses on coding and web design, YouTube was a natural fit. Siu began bidding on promising keywords, and the team created an inspirational video ad inspired by Apple’s slick aesthetic.

“We just started cranking out a bunch of sign-ups that way,” Siu says. “The price point wasn't that bad, and so things started to really blow up there.”

From there, Siu fired their PR agency and started working with one that was paid for performance. By the time he left Treehouse, Siu says he’d helped take the company from about 500 new subscribers a month to between 3,500 and 4,000. Now, Treehouse sees $15 million in annual revenue, according to a March 2018 Mixergy interview with CEO Ryan Carson. “So they're fantastic now,” Siu says. “They're just building on top of everything that they're doing.”

That may sound like an exceptional comeback, but it was only the beginning for Siu. From there he embarked on a career of getting into tight spots, taking risks, sometimes failing, and then making comebacks, all culminating in the success of his digital marketing agency.

Lose Money Now, Make Much More Later

It’s important to note that, while Treehouse was bringing in more customers, it wasn’t profitable in the short term. That gets to an important concept that Siu believes isn’t talked about enough, but has been an important one in his work to breathe new life into companies—the payback period.

They payback period is the length of time required to recover the cost on an investment. According to Siu, mastering the payback period can mean the difference between a quick, small ROI, and building a company with a huge payday.

For SaaS businesses, payback period tends to be long, with some companies not breaking even on an investment until 18 months out. But if they look at the long term, they know they can make back way more than that initial investment if they’re patient, understand the lifetime value (LTV) of a customer, and know their numbers well.

In episode 551 of their Marketing School podcast, Siu and Patel talk about the difference between seven-figure versus nine-figure businesses. Seven-figure businesses want a return on investment right away. Nine-figure businesses, however, are willing to lose money at first because they know the lifetime value of their customers.

Siu points to ClickFunnels as a great example of how understanding payback period can pay off in the long run. The marketing funnels software company is completely bootstrapped and reached $60 million in annual recurring revenue in 2017.

“The reason they're able to do that is because they have their numbers locked down,” he explains. “They are willing to perhaps even break even or lose money on the front end, right? So let's say when they first acquire an email or even a free trial in the beginning, they're going to lose money, but they know that their funnel in the backend is so locked down that they can upsell people on, you know, their mastermind or other bundles, things like that.”

Siu gives a hypothetical example too: Let’s say it costs you $1,200 to acquire a customer who pays $100 a month. The payback period, then, is 12 months. But if you can find a way to increase that price to $300 a month, you’re looking at a payback period that takes one-third the time. With the extra cash from the monthly recurring revenue of that customer, you can reinvest in your company to grow it faster. That’s why Siu emphasizes the importance of getting your pricing right. In fact, he says if he could go back to his Treehouse days, he would increase prices.

The Single Grain Salvage

Before he even hit the one-year mark with Treehouse, Siu set his sights on the next rescue mission: a failing SEO agency where Neil Patel was a partner. Armed with the marketing chops he honed at Treehouse, Siu was up for the challenge.

“But going to a company that I thought had a lot of problems,” he says, “that I thought was a house of cards, that I thought was going to be in big trouble—that was a different challenge.”

And even though he wasn’t thrilled to return to the agency world, the gamer in Siu saw it as a fun opportunity. “I thought the challenge of saving a stagnant company was really interesting because...I just see every challenge as, like, the game, right? It's just fun to play.”

At the time, Single Grain was an SEO agency with four partners. When Siu came onboard, he says the company was doing about $1.1 million a year, relying completely on SEO services, mainly link building for clients. But then the Google Penguin update happened, decimating Single Grain’s efforts.

“The work that the company was doing was no longer having an effect,” Siu says, “so customers just started churning left and right, and that's when we had to basically make a change. And that's when I popped in.”

But Siu had his work cut out for him. This time around, it wasn’t just marketing. He was in charge of operations too, and the company needed to get some processes in place. “Basically, when I came in, everything was on fire.”

Siu had to lay some people off because their roles were no longer relevant after the Google update. He then turned the company’s efforts to content marketing as the next logical step. Upon a recommendation, he hired a head of content marketing, which ended up being a mistake.

“This person was actually really toxic and caused four of our clients to leave,” he says. After that, two employees quit and morale was low.

Even though things had gone from bad to worse, Siu hung on.

The $2 Buyout

So let’s take stock of just where Siu was at in 2013: He was hired to resuscitate a dying company, he had to lay off employees, he hired the wrong person for a key role, his employees’ morale was low, and oh yeah, he had to take out a personal loan just to make payroll.

“I didn't know what the hell I was doing,” Siu says. “And I think a lot of times when it comes to business, or just when you're starting out, honestly, I think it's okay to say you don't know what you're doing.”

And then, leadership started to cave. One of the partners admitted to Siu that he wanted out, and the other three agreed that the company was worth nothing. While this easily could’ve been the end of Single Grain, Siu had an idea.

“I said, ‘Hey, guys, I will buy the company, I’ll take on the load, I'll put it on my shoulders, I'll see what I can do with it.’”

He offered one dollar to Neil Patel and one dollar to another partner, for 10 percent of their shares in the company. The other two partners, he offered to pay with profits from the company.

“So it's a buyout, but the contingency is if the company fails, I will owe nothing. So we signed that agreement, got it done, and it was off to the races,” Siu says.

He had his work cut out for him, as the company was in the negative when Siu took over; plus, its source of leads, Neil Patel, was now gone.

Meanwhile, as everything seemed to be falling apart, Siu continued to try to grow a podcast, Growth Everywhere, spending six hours a week recording and producing the episodes. One year into it, he was getting only nine downloads a day. But again, he powered through.

“Here's the thing,” he says, “you just keep going, right?” Now Growth Everywhere gets up to 80,000 downloads a month. Plus, it turned out to be a great lead generator for Single Grain.

Slowly but surely, Single Grain began gaining leads through organic search. Siu decided to refer those leads out and worked out referral deals with agencies, getting 25 to 30 percent of the lifetime of each customer. Siu says the referral income generated about $250,000 to $300,000 a year, but he wasn’t satisfied. “The kind of competitive spirit in me is like, ‘Okay, I wonder if we can build this thing up to be a paid advertising agency.’"

So Single Grain started experimenting with taking on its own clients and noticed retention went up, and clients were happier. Traffic was coming in from the podcast, organic search, and speaking events. Today, the company has 34 people working at an office in downtown L.A. The Single Grain website has gone from 4,000 visitors a month to about 80,000, and Siu believes it will reach half a million fairly quickly.

Content Marketing Is King

Take a look at Single Grain’s website, and you’ll see big client names such as Intuit, Amazon, and Salesforce. So what’s Siu’s secret for snagging premium clients? “Every single client that we have, whether it's a Uber or Lyft or TrustPilot, or whatever it is exactly, all came from content marketing.” In fact, up until recently, Single Grain didn’t even have an outbound team.

In the past, Siu says people from his management team have challenged him on the amount spent on content marketing, asking to see the ROI. So he did a breakdown of each client to see where they came from: podcasts, organic search, relationships Siu built up with people, and speaking opportunities. “It was all basically content marketing.”

When clients come through inbound or content marketing, Siu says, the sales cycle is much shorter than with outbound. Instead of waiting months for a deal to close, the time is cut down to weeks. In addition, the lifetime value of that client is longer, because after reading your blog posts, listening to your podcasts, and watching your videos, they feel like they know you. That leads to a longer-lasting relationship.

Another note Siu adds about client acquisition is that it pays off to specialize. At first, Single Grain focused on paid advertising for SaaS and education companies. They were able to boost their prices based on their specialty and proven framework.

“If anybody's trying to sell anything,” he explains, “when people ask you how you're different, the more you can niche down, at least in the very beginning, the more you can charge premium prices and the more you can focus in and maybe grow faster.”

Smooth Operator

Most of the employees at Treehouse were remote, so when Siu took over Single Grain, shutting down the San Francisco office and transitioning to a remote company seemed like a no-brainer. But as Siu puts it, it’s one of the “massive mistakes” he made.

Without having built up a rapport with his team and without understanding the relationships they had with each other, Siu says he shouldn’t have made an executive decision of that size, especially without asking for team input. “That totally devastated the culture, in my mind,” he says. “And I think when it comes to a services-based business, like this, where it requires a lot of creativity and collaboration, it's tough to have a completely remote atmosphere.”

So Siu shifted to a hybrid method: He and the team work in the office three days a week and remotely two days a week. “I just know that when we're in the office…we can just get so much done that way.”

To maximize productivity, Siu uses these two tools:

  • 15Five is a performance-tracking software that allows continuous feedback among your teammates. Grounded in positive psychology, it lets you see how people are feeling on a scale of one to five. It also allows employees to set priorities, report what they did for the week, and give each other high fives. “We can see how engaged people are. And that's one of the main core drivers, because 15Five allows us to see, even if you're filling out a five every single week...we can see in your answers, we can read between the lines to see how you're really feeling.”
  • Hubstaff is a time-tracking software that takes screenshots of each employee’s computer at random. “So here's the thing,” Siu says, “I don't like time tracking. But as an agency, service-based business, you kind of have to track your time to see how profitable you are per account.” And though he sees Hubstaff’s features as a bit “big brothery,” Siu says, “I personally don't like that kind of stuff, but I think it's really important, especially if we have contractors, from time to time.”

In addition to those tools, Single Grain has one-on-ones, as well as traction meetings with each team. “That's helped make us into a well-oiled machine,” Siu says, “and everyone's much happier now.”

Eric Siu’s Tips for Hiring Great Talent

When it comes to tapping into new talent for the team, Siu’s got a process worked out for that too.

  1. Establish core values. Even though people think it’s cliche, establishing what your company’s core values are before you begin hiring is essential.
  2. Assign homework. For new hires, it’s important to assign a tryout exercise. “It shows at the end of the day how serious they are about doing it.” Single Grain uses an applicant tracking system called Workable, where people can comment on it.
  3. Conduct one-way video interviews for more junior roles. Siu uses Spark Hire to conduct one-way recorded video interviews. “Because the thing is, with a lot of junior roles, you're going to get a lot of noise. Through a video interview, it's more asynchronous, so I can look at it whenever I want, or my team can. Or if it's a salesperson, we'll run them through a test called Objective Management Group, which has been fantastic.”
  4. Own the hiring decision. Siu always makes sure to be at the tail end of the interview process. “So whether it's an intern or anybody else, even if it's a remote person, I get to talk to the person,” he says. “I get to make the final call. Because then I can kind of own the decision at the end and say, ‘Hey, it's ultimately my fault if something goes wrong.’”
  5. Check those references! Yes, Single Grain does check references, and Siu judges the quality of the candidate based on this question: Are the first three references really excited about this person? Siu says he’s even been in a situation where he was about to make an offer but pulled it last minute because of the result of the reference checks. “We dig a little deeper, and we find out: can’t do it.”

Leveling Up: What’s Next for Single Grain

Never one to slow down, Siu’s already working on his next big projects. Right now, Single Grain is working on a SaaS product called ClickFlow, which helps companies get more organic traffic by boosting organic click-through rates.

On top of that, he’s writing a book, entitled Leveling Up as a nod to his competitive gaming days. “I just see this entire thing as a game,” he says. “Just plugging things together, making systems work, making it all happen.” Once the book is ready, he hopes he can use it to educate people on marketing and maybe even recruit talent to his agency or others. Siu also plans to do more live events and add an education component to his company.

“I think it all kind of plugs in together,” he says. “And I think the ultimate goal is just to give back and invest in education, because that's what I love.”

Key Takeaways:

  • What payback periods are and why understanding them is integral to scaling any business
  • How Siu bought a failing company for $2 and turned it into a powerhouse digital marketing agency
  • Siu’s most powerful strategy for snagging premium clients (it’s not a sales team)
  • The top tools remote companies can use to maximize productivity
  • Siu’s best tips for hiring great talent
Direct download: FP202_Eric_Siu.mp3
Category:general -- posted at: 8:57am AEST

To Sabri Suby, business is a jungle and only the strong survive. To be successful, you need to dominate the digital landscape and crush the competition into a fine powder. That fierce attitude has served Suby, and his clients, very well over the years.

Suby is the founder of King Kong, the fastest-growing digital marketing agency in Australia. Last year, King Kong raked in $7 million in revenue from its digital marketing campaigns, over $200 million in sales for its clients, and this year, is aiming to top that.

Hustling since he was a teen, Suby learned how to sell early on. Making a whole lot of cold calls over the course of his life, he never let up. Starting King Kong in his bedroom on his girlfriend's laptop, Suby preferred to jump into the trenches and get his hands dirty instead of wasting time reading business books and attending events. That unrelenting approach definitely paid off.

Listen in as Suby discusses why his agency scaled to millions in revenue so quickly, how to dominate direct response marketing, and why a service-based business should be the top choice for entrepreneurs.

ATTENTION: Suby has partnered with Foundr to teach an epic new course, "Consulting Empire.” If you want to learn how to start and scale a service-based business, whether you are a consultant, coach or freelancer, Suby reveals all of his golden strategies (the exact ones he used to scale from zero to $10 million) in this new course. It’s just about ready so get on the free VIP waitlist here to be one of the first we notify when it launches!

Direct download: FP201_Sabri_Suby.mp3
Category:general -- posted at: 9:39am AEST

I refuse to lose.”

It's the mantra that has guided Foundr CEO Nathan Chan through the highs and lows of becoming an entrepreneur. It helped him resist the naysayers, and confront deep insecurities and self-doubt, to build the business he fell in love with right away. That sense of determination and drive continues to fuel Foundr’s big goal of impacting tens of millions of entrepreneurs around the globe with world-class resources and training.

In this inspiring interview, Nathan gets up close and personal and takes us behind the scenes of what it was like starting Foundr—the good and not so good—and the many lessons he learned along the way. Interviewed by Dave Hobson, our head of product and business development and one of the first to join the Foundr team, the two reminisce about the early days, the first goals the company set, and the memorable moments that transformed the company from a side hustle to global presence.

Pull up a chair and a drink (Does Nathan prefer wine or beer? Find out in this interview!) and learn more about Foundr, how the company started, and where it is headed in the near future. Nathan shares it all in this special 200th podcast episode. We promise you this is an interview that will inspire you for many years to come.


Key Takeaways

  • How Nathan transitioned from his day job to full-time entrepreneur and why the timing was critical to his success
  • What separates the entrepreneurial success stories from those who never make it happen
  • How to minimize risk where you can while still making huge strides for your business
  • The importance of knowing your strengths and weaknesses and getting the right advice from mentors. This is one of the keys to Foundr’s growth.
Direct download: FP200_David__Nathan.mp3
Category:general -- posted at: 8:01am AEST

As a lifelong, accomplished dancer, Payal Kadakia never thought she would become an entrepreneur. But it was that very love of dance that compelled her to help others pursue or rekindle their own passions.

Driven by a strong desire to create something with potential to change people's lives, Kadakia created ClassPass, a platform that helps fitness and dance enthusiasts find and book classes in 8,500 studios in 50 cities around the world. Kadakia has appeared on prominent lists such as Fortune’s Most Promising Women Entrepreneurs and Marie Claire’s Most Influential Women in America, and ClassPass has been ranked among the fastest-growing technology companies in North America.

It may sound like Kadakia effortlessly glided from performing arts to business, but her seven-year journey was full of setbacks. She overcame several problems and had to pivot twice to stay afloat and then thrive.

In this interview, Kadakia explains how she turned her personal passion into a successful business, including the importance of partnerships and how being “mission-obsessed” instead of “product-obsessed” fueled her growth. She also discusses the power of purpose in entrepreneurship and the principles of real perseverance.


Key Takeaways

  • How passion and success are closely related and how entrepreneurs can connect the two
  • Why having heart and soul in business is crucial for problem-solving
  • The partnership model that made ClassPass so successful
  • Why the size of your company doesn’t matter if you follow your mission
Direct download: FP199_Payal_Kadakia.mp3
Category:general -- posted at: 7:26am AEST

In today’s podcast, we are shining the spotlight on one of our successful Instagram Domination students, Zach Benson. This driven entrepreneur is in the trenches daily doing what it takes to make his startup dreams (and travel dreams) a reality. And he’s done a great job. We couldn’t be prouder!

Benson was a former professional breakdancer who suffered an injury that ended his dance career. Looking for a “plan B,” he turned to Instagram and joined the Instagram Domination course to learn how to build his personal travel pages and drive valuable traffic. He’s done so well, that in the last 18 months, 170 exotic hotels have given him free stays in exchange for exposure to his network, and he is on track to hit $1 million in revenue.

But, the real magic happened when Benson partnered with a few Instagram Domination students and started an agency to help people grow and manage their Instagram accounts. The agency, Assistagram, has worked with high-profile clients such as The Four Seasons and Ritz Carlton and currently services 50 other companies.

Benson is grateful to the Instagram Domination community for allowing him to connect with like-minded people and create a thriving business fueled by his passions for travel and social media. We are so happy for him and the success he has achieved. Way to go, Zach!

Key Takeaways

  • How to build Instagram fan pages quickly to drive traffic to your company website
  • Why Instagram is still powerful even with the recent algorithm changes
  • What kind of content to post if you want to build brand awareness and grow your following
Direct download: FP198_Zach_Benson.mp3
Category:general -- posted at: 9:35am AEST

At 24 years of age Noah Kagan got tired of being fired. After getting the boot from Facebook and other companies, Kagan decided to create his own job and live life by his own rules. Those rules included posting taco-loving blogs, shooting over-the-top YouTube vids and creating Sumo, an eight-figure global company that empowers business owners to grow their brands using cool, geeky software tools.

Kagan likes to make business exciting and embraces the madness of entrepreneurial life. But aside from his contagious energy, he has a lot of knowledge and loves to help entrepreneurs. In this interview, he shares the lessons he learned building an eight-figure company and his top tips for hiring and maintaining A-player teams.

Kagan also stresses the importance of building relationships in this “era of Tinder-ization,” and teaches entrepreneurs how to set and track intentional goals to drive companies forward. Throw back a few (drinks or tacos) and listen in as Kagan shares his life and business adventures and helps entrepreneurs build and market profitable businesses.


Key Takeaways

  • The underestimated importance of relationship building in today’s market
  • How to create and keep a team of innovative employees who are team players
  • Why some vanity metrics, although exciting, can be a time and talent suck
  • How to set long and short-term goals that advance businesses
Direct download: FP197_Noah_Kagan.mp3
Category:general -- posted at: 9:04am AEST

Dan Siroker has always believed in the power of data and experimentation. A former project manager at Google and director of analytics under President Barack Obama, Siroker believes that experimentation should be one of the highest-order cultural values of an organization. To that end, Siroker co-founded Optimizely, a globally adopted software tool that enables businesses to experiment and fine-tune their businesses based on data.

From product development to front-end conversions, Siroker believes that a culture of experimentation should start from the top and trickle to the bottom, fueling growth on a large scale. Otherwise, organizations that are too afraid of risk and intolerant of failure end up undermining their ability to innovate.

In this interview, Siroker shares his strong belief in the power of experimentation, and how startups can use data to their advantage, now more than ever. He also shares one of the biggest lessons he's learned in his entrepreneurial career, and how he is building a 100-year legacy with his company.

Direct download: FP196_Dan_Siroker.mp3
Category:general -- posted at: 8:17am AEST

Growing up as a fanatical skateboarder first in Ohio and then moving to California as a teen to pursue skating professionally, many of his friends and fellow skateboarders were older than him and running their own businesses.

From a very young age, he was steeped in skateboarding’s DIY culture, always on the lookout for the next frontier in the sport, or scrappy new brand to emerge from the scene. From skate shops to clothing companies, Dyrdek was exposed to a variety of entrepreneurial ventures early in life.

Key Takeaways

  • The core traits Dyrdek looks for when investing in businesses and entrepreneurs
  • What his “core to more” philosophy is and how it contributes to a company’s longevity
  • Dyrdek’s many business successes (and failures) and what he learned from each
Direct download: FP195_Rob_Dyrdek.mp3
Category:general -- posted at: 7:24am AEST

Former firefighter Steve McLeod turned his passion for helping people into a nationwide business, scaling his Fire and Safety Australia company to eight figures in 10 years. In addition to running a profitable company, McLeod also empowers entrepreneurs by teaching them how to become more courageous and run goal-focused businesses that never give up.

According to McLeod, it takes courage to protect and serve, especially when danger could be present at every turn. But it takes another kind of courage to withstand the pressures of entrepreneurship to build and scale a $20 million dollar company.

In this inspiring interview, McLeod discusses his latest book, Courage for Profit, and reveals some of the gold he has learned from his own struggles, successes, and failures. He outlines the key principles entrepreneurs need to embody if they want to scale their businesses. We salute McLeod for his passion for serving and helping people. Way to go!


Key Takeaways

  • The 4-part formula that fueled McLeod’s massive success
  • The red-green-yellow matrix system for smashing goals (you've probably never heard this before)
  • The key to being super-focused, even if you struggle with constant distractions
  • The two most important things you need to know to scale your company
  • How to hire and keep the employees who will drive your business forward
Direct download: FP194_Steve_McLeod.mp3
Category:general -- posted at: 3:49am AEST

Gary Muller’s company is thriving. His Mill House Inn in East Hampton, New York has been in business for 20 years and recognized by Travel + Leisure and the Travel Channel, highly rated by Zagat, and featured in other prominent publications. His properties have welcomed celebrities and prominent people from all over the world.

If you ask Muller the secret to his success, he'll likely tell you that his family is largely responsible. "Family" is how Muller describes his employees at the inn, and he believes all leaders should treat team members as such, displaying empathy, instilling trust, and creating an environment where going “above and beyond” is a daily occurrence.

Muller is in the people-helping business. Whether that means serving his cherished guests or connecting with his work family, his care for other people runs throughout his unique leadership style. Learn how Muller has grown such a loyal and dedicated team, and how he fosters a work culture that has led to massive business success.

Key Takeaways

  • The most important trait to look for in a potential hire (it has nothing to do with skills)
  • When it’s time to let people go, even if it pains you to do so
  • The difference between leadership and management, and how one is critical to growing a business
  • How to ensure your team is doing their best work, without micromanaging
Direct download: FP193_Gary_Muller.mp3
Category:general -- posted at: 5:08am AEST

Welcome back to our “Best of Foundr” podcast series!

To celebrate Foundr’s 5th birthday, we put together a series of special edition podcast episodes that feature the best snippets from our most popular episodes. We pulled out the gems from each of your favorite interviews and compiled them into a three-week series of pure content gold.

This week we are focusing on hustle, motivation, mindset, and getting things done! In this episode, we have one of my heroes and the king of hustle, Gary Vee. We also have memory and productivity wizard Jim Kwik, morning routine master Hal Elrod, and the mindset king himself, Tony Robbins!

While I have loved the releases in this special birthday series so far, I have to say, we saved some of the best for last. In this episode, you will be challenged and motivated to seriously move to the next level!

Direct download: FP192_5th_Birthday.mp3
Category:general -- posted at: 7:30am AEST

Welcome to our special “Best of Foundr” edition of the podcast!

To celebrate Foundr’s 5th birthday, we put together a series of special edition podcast episodes that feature the best snippets from our most popular episodes. We pulled out the gems from each of your favorite interviews and compiled them into a three-week series of pure content gold.

This is the second week of our three-part series.  Last week, we heard from four successful entrepreneurs on how to build an epic online presence.

This week we are focusing on investing, sales, and scaling your business. You will be learning from two masters of sales, Ben Chaib and Matthew Kimberley; from the shark himself, Robert Herjavec, on investing and scaling your business; and lastly from Mr. E-Myth himself, Michael Gerber, on setting your business up to scale.

These are some of my personal favorites that have had a huge influence on how Foundr is run today! Enjoy listening to the best of the best!

Direct download: FP191_5th_Birthday.mp3
Category:general -- posted at: 6:52am AEST

Welcome to our special “Best of Foundr” edition of the podcast!

To celebrate Foundr’s 5th birthday, we put together a series of special edition podcast episodes that feature the best snippets from our most popular episodes. We pulled out the gems from each of your favorite interviews and compiled them into a three-week series of pure content gold.

This week we are focusing on how to create an online presence with content marketing and Instagram. We are featuring some serious advice from our conversations with Gretta Rose van Riel, queen of Instagram and Influencer marketing; Darren Rowse, the OG of the blogging world; Deonna Monique, Instagram millionaire; and content king Derek Flanzraich, founder of Greatist.

Enjoy listening to the best of the best!

Key Takeaways

  • The influencer marketing strategies behind Gretta van Riel’s multimillion-dollar ecommerce brands
  • How to build a successful content-based business with Darren Rowse
  • The branding and traffic strategies behind Greatist’s massive success
  • How to use Instagram to generate millions of dollars in your niche with Deonna Monique
Direct download: FP190_5th_Birthday.mp3
Category:general -- posted at: 6:29am AEST

Welcome to Foundr's fifth birthday celebration!

Over the past five years, we’ve been blessed to interact with an awesome community of passionate entrepreneurs who are making it happen and turning their dreams into reality. We want to honor these inspiring entrepreneurs in our community by sharing their stories and highlighting their successes.

In today's special episode, we talk with Austin Peterson, a rising entrepreneur who is working in the trenches daily to build his vintage truck restoration business Black Dog Traders.

Austin reached out to me for advice in early 2017, and it's been amazing to watch him build his business to new heights. In this episode, we're airing a one-on-one coaching session with Austin and mentor David Brim, founder of Tomcar Australia, who is helping him take his business to the next level.

In this episode, get the inside scoop on the advice that is helping Peterson optimize his production, streamline his processes, and continue to scale his company in the coming year.

Well done Austin! We look forward to your continued success!


Key Takeaways:

  • David Brim’s advice on how to optimize production and streamline processes
  • How Tomcar acquires leads and funnels them through its sales process
  • Why offering too many product options can hinder a sale
  • When and how to outsource to speed up your results
Direct download: FP189_David_Brim_Austin_Peterson.mp3
Category:general -- posted at: 4:38am AEST

“I’m not crippled with being perfect. I’m crippled with not doing,” Gary Vaynerchuk says, and that about sums up the philosophy that propels him ahead in life and business—avoiding hesitation and seizing the moment at all costs.

To many, Vaynerchuck (aka Gary Vee) needs no introduction. He’s a serial entrepreneur, four-time New York Times-bestselling author, venture capitalist, popular podcast host, and sought-after public speaker serving an audience of millions. And he's showing no signs of slowing down.

How does this guy accomplish so much? Vaynerchuk doesn’t agonize or hesitate when starting something new. He dives in voraciously, working his tail off and learning as he goes. He also never aspires to "have it all." Too often, entrepreneurs strive for some lofty material goal as the finish line, but for Vaynerchuk, having it all begins on the first day we embark on our entrepreneurial journeys. The reward is in the process itself.

In this interview, Vaynerchuk shares tidbits from his new book Crushing It! (an updated version of his 2009 bestseller), unpacks epic branding and marketing tips that have led to his success, and reveals his personal philosophy on GSD.

Gary Vee wants aspiring entrepreneurs to crush it with him. Are you on board? Listen in and get inspired.


Key Takeaways

  • What it really means to “have it all,” and why you may already have it
  • Why trying instead of doing leads to stagnation
  • Why all businesses need to be media producers, regardless of their business models
  • Insights on the personal vs. professional brand debate and how to decide what's best for you
  • Why omni-channel branding draws more people to your company
Direct download: FP188_Gary_Vee.mp3
Category:general -- posted at: 6:24am AEST

Key Takeaways

- Acumen's trailblazing vision on global poverty eradication
- Why it's better to invest in people first, then ideas
- The companies Acumen has invested in and the depth of impact they have made
- Key advice from Novogratz to anyone interested in pursuing social entrepreneurship

Direct download: FP187_Jacqueline_Novogratz.mp3
Category:general -- posted at: 5:39am AEST

No Task Too Big

Leah Busque launched TaskRabbit and became a pioneer in the sharing economy. Now she wants to empower other founders as she transitions to venture capital.

Picture this: You’re sitting at home on a February night in Boston, where winter temperatures dip well below freezing, and it’s snowing outside—not exactly a good time to find out your hundred-pound Labrador retriever is out of dog food.

So what do you do? Do you don your boots and trek through the snow in pursuit of kibble? Do you ask your spouse to do it? To a 28-year-old Leah Busque, the solution should have been simple: Why not hire someone in the area to run that errand for you?

“[My husband and I] were certain that there was someone in our neighborhood that'd be willing to help us out,” Busque recalls. “Maybe even someone at the store at that very moment, and it was just a matter of connecting with them.”

After some geeky brainstorming with her husband, Busque grabbed her iPhone—it had come out a few months before—and bought the first domain that came to mind: RunMyErrand.com. Four months after that, she left her job as a software engineer at IBM and locked herself in her house for 10 weeks to build the first version of the site, all because a service she wanted didn’t yet exist. Thanks to Busque’s creativity and persistence, now it does—TaskRabbit.

Think Big, Start Small: From Back Bay to the Bay Area

In September 2008, RunMyErrand launched in the Boston neighborhood of Charlestown, where Busque was living at the time.

“I was very targeted,” she says. “[I] really wanted to focus on one geography and create a peer-to-peer-network in that geography that was liquid, that would have high supply and high demand … and from there it just really started to snowball.”

Word traveled fast. People in Charlestown started telling those in Beacon Hill about this new service that let you hire locals to run your errands. Word traveled from Beacon Hill to the residents of Back Bay and Cambridge. Soon enough, Busque was recruiting Taskers from all over the city of Boston.

By the summer of 2009, Busque was invited to participate in an incubator program run by Facebook, leading her to change the name from RunMyErrand to TaskRabbit before launching in her second market—San Francisco.

A Pioneer in the Peer-to-Peer Sharing Economy

Here’s how TaskRabbit works:

First, you post a task on the platform (mobile or web), such as, “I need help mounting a 32-inch flat screen TV on my wall.” Next, you get matched with vetted Taskers in your area, and you can view their ratings and hourly rates. Then, your chosen Tasker shows up, completes the task, and gets paid securely via the app. A simple enough idea for any smartphone user today, but you have to remember that TaskRabbit launched in 2008; most people were still rocking flip phones, and the term “sharing economy” hadn’t yet made it into the consumer vernacular.

“These technologies were so new and so emerging, it wasn't an obvious thing to be able to utilize your mobile device to connect with people in real time,” Busque explains.

“Certainly, no one was going to jump into a stranger's car off the street and grab a ride with Lyft or with Uber. And so the consumer mindset was completely different. Trust was a big barrier. Letting a stranger into your home to hang shelves, or hang curtains, or clean your house—these were all very big decisions that the consumer was making.”

It’s been almost a decade since TaskRabbit’s inception, and the company’s come a long way from that neighborhood in Boston.

The service has expanded to about 40 markets (including London), raised more than $50 million in venture funding, and last year was acquired by Swedish furniture giant Ikea.

According to Busque, TaskRabbit gets more than 15,000 applications every month from people who want to be Taskers. And on the buyer side of that marketplace, people have hired Taskers to do errands as varied as waiting in line at a store, rushing a passport to the airport, and even retrieving keys from the bottom of a lake.

Knowing When to Quit, and When to Keep Going

As an entrepreneur, it’s important to know when to quit. Failing to realize an idea is a dud can lead to overspending and wasted time. So we had to ask Busque, especially given the novelty of the idea when it first launched: Did she ever feel like giving up?

“I’m not someone who gives up,” Busque says. “I’m not someone who quits.”

Given the dismal economy during TaskRabbit’s early days, one would have understood if she had. When Busque launched the first version of the site in September 2008, subprime lending had tanked the housing market and the stock market was crashing, ushering in the Great Recession—not exactly the best time to be quitting a steady job, or starting a business, or seeking investors. But still, Busque pressed on, choosing to bootstrap her startup for almost a year.

“We had a mortgage on our house and we had bills to pay,” Busque recalls. “We basically did the math and thought, 'We've got about six months where I don't need to work. I don't need to take a salary to kinda make ends meet.'”

When six months came and went and TaskRabbit still didn’t have an investor, it must have been difficult not to close up shop right then and there.

“We were so close though; I felt like I was on the brink of something every day. I thought, ‘I just need 24 more hours, 48 more hours, one more week.’ And so every day was a question [of], ‘Should we keep going? Should we call it?’”

Thankfully, Busque didn’t call it quits. In December 2008, three months after she had missed her self-imposed deadline to raise funding, Busque closed her first angel round of $150,000. That funding was enough to carry her fledgling business through to the end of 2009, when she raised a seed round of $1 million.

As an entrepreneur, it’s just as important to know when to keep going as it is to know when to quit.

Before You Automate, Do it Manually

As Y Combinator co-founder Paul Graham says, “Do things that don’t scale.” In his famous 2013 essay on this principle, Graham writes, “Startups take off because the founders make them take off.”

“I definitely had to do things that weren't going to scale over the long term,” Busque says.

In the early days, for example, Busque could often be found zipping around Boston on her little Honda scooter, completing tasks on her own. “I still am the master TaskRabbit,” she laughs.

That firsthand experience as a Tasker proved invaluable, as Busque got to know her customers and gained a deeper understanding of how her service fit into the marketplace. That willingness to dive in and get her hands dirty proved to be a hallmark strategy for the founder.

“Even as the company developed … I would say one strategy I used that worked pretty well was figuring out how to do things manually first, to really, really understand what to build, how to make it more efficient, and then start to automate layers on top of it over time.”

Take TaskRabbit’s application process, for example. The first version involved an online application, an in-person interview (to start the site, Busque conducted 30 interviews herself over coffee in Boston), and a background check. In total, that highly manual process took three to five days.

“But the time we spent,” Busque says, “for instance, doing in-person interviews, really helped us to understand what was important in finding the right Taskers, in the highest quality, most consistent Taskers. And so we then, from those in-person interviews, would figure out what questions we needed to ask, what the indicators were early that this Tasker was going to perform well on the platform.”

Now? Every piece of that process is automated, and a Tasker can be onboarded in a matter of hours, not days.

How to Get Comfortable With Competition

Every founder knows that sinking feeling of learning a new business similar to yours is entering the marketplace. Maybe it’s why entrepreneurs are notorious for guarding their ideas with intensity, fearing one slip-up will allow a competitor to crush everything they’ve built.

But the fact is, if you’ve got a good idea, someone else is either already doing it, or will be doing it soon.

After nearly a decade in business, TaskRabbit has seen its fair share of competitors. At first, this rattled Busque’s nerves. “I remember early on stressing out a lot about the competition, but I think what I learned over time was that I just needed to stay focused on what we were building.”

What inspired her shift from flustered to focused was seeing so many competitors rush in and then quickly fizzle out.

“I would see competitors come out of the gate, raise multi-millions of dollars, tens of millions of dollars, and burn through it in 18 to 24 months. And so after that happened a couple of times, I just realized that I was going to play a long game.”

What was TaskRabbit’s competitive edge? “From day one, we were producing revenue,” Busque says. “From day one, we had positive operating margins. So for every job that went through the site, we were always making money on it. And we had to be very disciplined about how to build a platform that operated that way.”

She also thinks that too many of her competitors caved to marketplace and investor pressures, something she as a startup founder was not immune to.

“I remember getting a lot of pressure even from my investors at one point in the company's life cycle about growth, about the competitive landscape, pressure to move faster, to copy whatever it was that they were doing, but I knew my business better than anyone.”

Repeat After Her: ‘This Is Not Rocket Science’

Many aspiring entrepreneurs let what they don’t know become a stumbling block to launching their businesses. But for Busque, what she didn’t know, she knew she could figure out. She recalls a conversation she had with herself just before leaving her job at IBM to pursue TaskRabbit:

“I was thinking about all the things that I didn't know how to do. I was thinking, ‘All I know how to do is build this product. I’m a coder; I know how to code. I don't know how to raise money from investors, I don't know how to hire, I don't know how to fire, I don't know how to build a financial model.’ And then I realized that, to me it sounds funny, but I remember saying to myself: ‘This is not rocket science. … Just go figure it out.’”

Busque cites confidence as a key requirement for every successful entrepreneur. “As an entrepreneur, you're doing something that no one's ever done before, and you're going to have to innovate and build new things in new ways.”

Another key entrepreneurial quality? Adaptability. And having gone from engineer to entrepreneur to investor, Busque clearly has that in spades. Though she studied at a women’s liberal arts college, she works in the mostly male tech industry. Though she’s highly analytical and majored in math and computer science, she appreciates the arts and minored in dance.

“The appreciation of those other aspects has really aided me in being able to adapt, and learn quickly, and jump into new situations, and have the confidence that I'm going to be able to figure out and learn whatever I need to as fast as I need to.”

From Founder to Investor

In 2016, Busque stepped down as CEO of TaskRabbit, and in September 2017, the company was sold to Ikea. (Interestingly, in a TEDx Talk six years prior to the acquisition, Busque said the most popular task posted on the platform was Ikea furniture assembly.)

“TaskRabbit is my first baby, my first child,” she says. “The one thing that you would hope for your child or for your company is that it has a full life, right? And is happy, and grows up, and moves on from you. And so I feel very fortunate that I got to be on that journey and see that happen all the way through.”

Even after the acquisition, Busque has her feet firmly planted in the startup world. She serves as executive chairwoman at TaskRabbit and has transitioned into the role of investor as general partner at Fuel Capital, a seed-stage venture fund in San Francisco. It’s a natural transition, given her background as the founder of a venture-funded startup.

“Building things has always been my passion,” she says. “I love the early stages of a company, when there is a seemingly impossible-yet-pressing problem to solve. I couldn’t be more excited to work closely with early-stage founders and their teams as they take on world-changing ideas—much like I did during my early days at TaskRabbit.”

Given her years of experience building a peer-to-peer marketplace, Busque as an investor has chosen to focus on consumer businesses and marketplaces.

“I’ve also focused my attention on meeting and supporting the ‘outsiders,’” she says, such as women founders, those who don’t fit the typical mold, and those who aren’t based in Silicon Valley. “It’s been awesome to meet so many awesome entrepreneurs who don’t look like the typical founder. … I certainly didn’t!”

Her new role and focus couldn’t come at a better time. According to the Crunchbase “Women in Venture” report, in 2017, only 6 percent of all seed dollars went to female-only-founded startups, while male-only-founded startups received 83 percent of all seed dollars. Those figures have remained remarkably static since 2012.

Busque’s first investments reflect the type of impact she hopes to make. Werk is a women-founded career platform helping women find flexible job opportunities. Feather is a Brooklyn-based startup that provides affordable furniture rental with quick delivery.

“As I thought about what I wanted to do next, I just started getting pulled in the direction of venture from a lot of different angles,” Busque says, “from investors that I highly respect, from friends that were in the industry, and so I made the decision that I wanted to do investing full time as the next stage of my career.”

And if the previous stage of her career is any indication, there’s no task too big for Busque.

Key Takeaways:

  • The two traits Busque says all entrepreneurs need to have to be successful (it has nothing to do with skills or industry knowledge)
  • The stumbling block that keeps many aspiring entrepreneurs from launching businesses
  • How Busque eventually got comfortable with competitors entering her space
  • Why Busque's "never quit" attitude was the key driver of TaskRabbit's early success

 

Direct download: FP186_Leah_Busque.mp3
Category:general -- posted at: 1:41am AEST

Melody McCloskey is the founder of StyleSeat, a San Francisco-based SaaS company that has raised $40 million in funding, powers billions in transactions and is recognized in 82% of American cities. StyleSeat provides tools for beauty professionals, which lets them run their entire business with just one piece of software.

If StyleSeat sounds like your typical booming, industry-disrupting tech startup, don't be fooled. McCloskey is dedicated to running her company in very atypical ways, and in today's interview, she shares how bucking Silicon Valley norms can help you achieve tremendous success—on your own terms.

For example, her startup is led overwhelmingly by women, a rarity in an industry with persistent gender gaps. The company has also chosen to stop raising money, and without a marketing or sales team, it barely invests in marketing.

McCloskey loves what she does and her business decisions are not solely driven by a pursuit of revenue and growth like many of her peers. Her goal is to empower female business owners with amazing products so they can do what they love as well. When they win, she wins.

Check out the interview to learn McCloskey's unique approaches to funding, growth, and staffing, along with other priceless lessons.


Key Takeaways

  • Why McCloskey, against popular opinion, is not interested in raising any more money
  • The primary engine behind StyleSeat's exponential growth
  • Why the startup walked away from a billion-dollar business model
  • Why McCloskey keeps her team smaller than most comparable startups
Direct download: FP185_Melody_McCloskey.mp3
Category:general -- posted at: 9:17pm AEST

Unlike most entrepreneurs, Ajit Nawalkha doesn't focus on profit, revenue, sales, or customer surveys to grow his company. He's also been known to abandon some of his products, even when they're highly profitable, if they don't align with his vision. An unconventional approach, to be sure, but his personal development school Mindvalley has more than 3 million students and counting.

So what does Nawalkha focus on? His mission is to create life-changing experiences for his customers, and does so by bringing them instruction from some of the most powerful speakers of our time.

Nawalkha’s main goal is not to develop products, but to create "heart-centered experiences." And he believes this is the key to Mindvalley’s success in its quest to move their business—and all of humanity—forward. In this unique interview, you will learn exactly how Mindvalley creates these amazing client experiences, and its unconventional philosophy for measuring success.

Nawalkha and Mindvalley have risen to the top by focusing not on conventional indicators of growth, but on making the world a better place—one client experience at a time.

Key Takeaways

  • How Mindvalley validates its products and finds out what its customers want (without using surveys)
  • Mindvalley’s secret sauce to creating amazing experiences for its clients
  • What many new entrepreneurs get wrong that limits their ability to grow and scale
  • How Mindvalley measures success (it has nothing to do with revenue and churn rate)
Direct download: FP184_Ajit_Nawalkha.mp3
Category:general -- posted at: 10:17am AEST

Key Takeaways

  • Lessons learned from more than 20 years of experience as entrepreneurs
  • The defining action that tripled their conversions and led to the sale of their first company
  • The one marketing strategy that has allowed them to massively scale their business (it has nothing to do with social media or advertising)
  • How to hire trusted C-level executives to take the load off your shoulders as you grow
Direct download: FP183_DelmaGrant_Dunoon.mp3
Category:general -- posted at: 5:20am AEST

Key Takeaways

  • The hard-earned lessons Ries learned that ultimately led to the creation of his renowned book, The Lean Startup, and ushered in a worldwide movement
  • How to hire and assign managers successfully
  • How to create a product your customers will love (Hint: it starts with your product owner)
  • The downfall of many leaders who want innovation and change but do not see it happen in their organ
Direct download: FP182_Eric_Ries.mp3
Category:general -- posted at: 8:28pm AEST

Entrepreneurs find inspiration in all sorts of places. But for Ari Meisel, founder, bestselling author, and productivity expert, desperation was the driving force behind the launch of his successful company, Less Doing. That same desperation led him to breakthroughs in productivity that changed his life.

At just 23 years old, Meisel was enjoying a thriving real estate career, but after suffering some major business blows and landing $3 million in debt, the stress overwhelmed him and he was diagnosed with debilitating Crohn’s disease. Managing the disease crippled Meisel’s ability to work regularly. Some days he was unable to work longer than an hour.

During this difficult experience, Meisel realized he needed to devise a way to accomplish more work in the limited time he had. Through a long process of experimentation, Ari developed his Less Doing, More Living productivity system, which allowed him the time he needed both to build a new business and improve his health.

A devoted husband, father of five, and dedicated businessman, Meisel now helps individuals and businesses around the world become more effective—all while working only 5 ½ hours a day. He's also recently teamed up with Foundr to teach his Less Doing, More Living system to our awesome community.

In this inspiring interview, learn the secrets behind Meisel’s airtight productivity system and discover how you can also become a productivity master and optimize, automate, and outsource your life and business.


Key Takeaways

  • Ari’s 15-minute outsourcing rule that frees you up to focus on growing your business
  • How saying no to new opportunities can grow your business more than saying yes
  • The power of using machine learning to slash your work time and automate systems
  • Why working more hours does not always translate into getting more work done
Direct download: FP181_Ari_Meisel.mp3
Category:general -- posted at: 8:03pm AEST

What if you could stumble upon a game-changing idea without spending time and money on validation, industry research, or prototypes? And then grow this idea into the second largest company in your niche? It’s not common, but that's what happened to today’s podcast guest, David Barrett.

Barrett is the founder of Expensify, the second largest expense-reporting company in the world. But in its early stages, Barrett knew nothing about the space, nor was he particularly interested in it. In fact, he completely made up the Expensify idea as a decoy to get some funding for another endeavor, since banks weren’t interested in his “real” business idea.

But the decoy picked up steam as he pitched it, and before Barrett knew it, he was sitting on a potential goldmine. People were talking more about his fictitious business idea than they were his original idea. And Expensify was born.

Keeping with Barrett's unconventional approach to startups, Expensify’s massive growth has also been atypical. Barrett has not spent a dime on advertising, outbound sales calls, or salespeople. The software essentially sells itself.

In this packed interview, learn exactly how Barrett grew his company and how his unique business sales model and contrarian style disrupted the space. David Barrett is a true example of how challenging the status quo and disrupting common ideas can lead to avenues of massive growth and potential.

Key Takeaways

  • The sales model that allowed Barrett to scale his company without paying for customer acquisition
  • Why profit should not come at the sacrifice of growth and how the two can coexist
  • The misguided business advice that almost everyone follows, but leads to failure
  • The most important factor to building an A-player team
  • Why reinventing the wheel with your business can limit your potential
Direct download: FP180_David_Barrett.mp3
Category:general -- posted at: 7:22am AEST

Jessica Jackley, co-founder of the game-changing microlending site Kiva, never played the typical role from entrepreneurial stories we're accustomed to hearing. She didn't start a business as a kid, and never dreamed of making millions. Jackley considered entrepreneurship a greedy venture, in fact, and she wanted to be one of the good guys.

But things quickly shifted for Jackley while she was in East Africa doing survey work for a nonprofit. Inspired by her work there with microfinancing, Jackley thought up the idea for Kiva, and wanted to spread it to other countries. Kiva would be a business, but one seeking to make a social impact.

In 2009, as an experiment, Kiva launched its first pilot round of loans. Fast forward 12 years later, and the company has issued more than $1 billion in microloans to 2.6 million borrowers in 84 countries.

Jackley didn’t stop there. After Kiva, she went on to become an accomplished investor, entrepreneur, and the author of Clay Water Brick: Finding Inspiration from Entrepreneurs Who Do the Most with the Least. She currently teaches social entrepreneurship at USC.

Throughout her experiences, Jackley discovered how entrepreneurship and social change could not only coexist, but come together to create a huge global impact.

Inspired to follow in Jackley’s footsteps? Well, don’t be. Jackley doesn’t want you to replicate what she did. She urges entrepreneurs to play by their own rules, define business with their own ideas, and never ask for permission. She believes these principles have always been the key to her success, and she outlines them in detail in this inspiring interview.

Key Takeaways

  • How and why hesitant entrepreneurs often cripple themselves
  • Why naiveté can be a strong entrepreneurial trait
  • The strategies Kiva used to build early-stage momentum and achieve massive exposure in its first three months
  • The reason Jackley decided to close her latest business venture, Profounder, and pursue a different path
Direct download: FP179_Jessica_Jackley.mp3
Category:general -- posted at: 5:37am AEST

Welcome to the final installment of our three-part podcast series that’s shining the spotlight on successful entrepreneurs who hail right from our very own Foundr community! These passionate people are in the trenches daily doing what it takes to make their startup dreams a reality.

If you haven’t listened to parts one and two, featuring Gamal Codner and Shannon Willougby, you can check them out right here and here.

Today, we talk with Brandon Monaghan and Justin Kemperman, superstar entrepreneurs (one hasn’t graduated high school yet!) who developed a stellar brand and scaled their ecommerce business to half a million in sales in just 10 short weeks.

After joining our Start & Scale ecommerce course, they realized they didn’t need to reinvent the wheel to make money in ecommerce. They just needed to improve upon an existing product and build a powerful brand around it.

And, that’s exactly what they did. Their company, The Urban Lash, scaled so quickly that they didn’t have enough inventory to supply orders. They kept on growing, and Brandon and Justin recently sold their business for a nice profit and are ready to start the process all over again.

In this power-packed interview, we go behind the scenes with Justin and Brandon and learn exactly how they scaled their business so quickly, what principles guided their growth, and what they have planned for the future. We are extremely proud of these guys and how rapidly they grew their ecommerce business. Way to go!

Key Takeaways:

  • The steps they took to rebrand an existing product and blow it up to $500k in sales
  • The two strategies that created so much growth in such a short time
  • The advertising strategy that allowed them to scale week after week and remain profitable
  • The influencer marketing tactics they used to catapult their brand
Direct download: FP178_Brandon_Monaghan_Justin_Kemperman.mp3
Category:general -- posted at: 6:56am AEST

Welcome to part two of our three-part podcast series that's shining the spotlight on successful entrepreneurs who hail right from our very own Foundr community! These passionate people are in the trenches daily doing what it takes to make their startup dreams a reality.

If you haven't listened to part one, featuring Gamal Codner, you can check it out right here.

Today, we talk with Shannon Willoughby, a courageous entrepreneur who started from zero and scaled her ecommerce business to $30,000+ per month and growing. Using the principles she learned in our Start & Scale ecommerce course, Shannon was able to surpass $250,000 in sales since starting her aromatherapy business just four months ago.

This episode is packed with advice on how anyone can scale a profitable ecommerce business, but it's also an inspiring story. Not only did Shannon build a business from zero, she's also recovered from two strokes and won the New Zealand rugby National Championship.

Her “never die” attitude will have you dreaming bigger than ever. Learn the strategies that led to Shannon’s success and how to follow in her footsteps. We are extremely proud to share her story with you!

Key Takeaways

  • The one avoidable mistake Shannon made that slowed her progress and how she turned it around
  • How passion and personal experience plays into business success
  • The most important factor that fueled Shannon’s early success (it’s super easy to replicate)
  • The pre-business step all ecommerce shop owners should take to ensure people will buy their product
Direct download: FP177_Shannon_Willoughby.mp3
Category:general -- posted at: 7:10am AEST

The Foundr community is full of passionate people from all walks of life, in the trenches daily doing what it takes to make their startup dreams a reality. In this week's podcast, we want to shine the spotlight on one of these rising entrepreneurs who we're especially proud of—Gamal Codner of Fresh Heritage.

In part one of a three-part Start & Scale podcast series, we talked with this corporate-sales-guy-turned-ecommerce-entrepreneur, who overcame some difficult setbacks to scale his business to incredible success. Codner is a student of our Start & Scale ecommerce course, and was able to leverage the principles he learned in the course to grow his physical products business by 30X in just three months.

Before becoming a Start & Scale student, Codner left his corporate sales job to become a successful affiliate marketer. He then joined an accelerator program and decided to create his own ecommerce business. Codner was having some success but it wasn’t until he joined Start & Scale that he was able to use the principles we teach in the course to catapult his business revenue from $2,000 to $60,000 per month.

In this rare interview with an up-and-coming member of the Foundr community, we learn the exact strategies Codner used to create products his audience loves, and take his business to the next level. We are extremely proud of Gamal’s achievements and we are happy to share his inspiring story with you!


Key Takeaways

  • The one thing you must have to scale your ecommerce business
  • How new ecommerce entrepreneurs can get their products in front of large audiences quickly
  • Codner’s newest content marketing strategy, and how it will help him reach greater heights next year
  • A low-risk strategy to testing new products before you launch them full throttle
  • The one low-cost strategy Codner wished he had used during the initial stages of his business
Direct download: FP176_Gamal_Codner.mp3
Category:general -- posted at: 11:57am AEST

As a former Navy Seal, Brandon Webb is no stranger to life’s roller coaster of adversities and triumphs. In the military, pressure is a constant, and learning how to withstand and thrive under that pressure has made Webb a victor in his own battles, whether in business or everyday life.

In this interview with Foundr, Webb shares the story of how he lost millions in his first failed startup and turned his misfortune around to build and scale his eight-figure media and ecommerce business, Hurricane Group, Inc. He shares exactly what the turning point was that gave him a burst of forward momentum and the realizations that led to his success.

Webb’s astonishing accomplishments have been shaped by the principles he's mastered to overcome adversity, maintain laser-sharp focus, and make better decisions under pressure. He discusses how learning the necessary principles of FOCUS have helped help him create attainable, actionable goals that influenced outcomes and have helped him win in life and business.

As a New York Times-bestselling author, Webb also takes you behind the cover of his new book, Total Focus: Make Better Decisions Under Pressure, where he discusses how to approach the challenges and complexities of growing a startup using the indispensable life skills and principles he learned as a Navy Seal.

Key Takeaways

  • Why saying no to some irresistible opportunities can save your business.
  • How to figure out the delicate balance between doing too much and doing just enough to move the needle
  • Why raising money can sometimes bury you deeper into a hole of failure
  • The one thing all young entrepreneurs should know to avoid an insecure financial future
  • The single trait an entrepreneur needs to get investors to fork over their money
  • Webb’s personal and business goal-setting strategies that have led him to winning in business and life.
  • And more!
Direct download: FP175_Brandon_Webb.mp3
Category:general -- posted at: 11:38am AEST

Anyone, technically, can build a business. But it takes real skill to convert an audience into die-hard followers who will stick with you no matter what. Ben Rattray is an expert at doing just that, now at the helm of one of the largest online communities in the world, not to mention a major force for social change.

Rattray is the founder of Change.org, one of the world's biggest social enterprises with over 100 million users spread across 196 countries, empowering everyday people to create and join social causes. In 2012, he was named one of the 100 most influential people in the world, according to Time magazine, and he's partnered with titans ranging from Virgin to Amnesty International.

But before it became the massive vehicle for online activism it is today, Change.org looked very different. In fact, it actually wasn't until 2011 that Change.org became the online petition platform we all know and love today.

Like most entrepreneurs, Rattray had to go through a few pivots before finally developing a model that actually worked. While most entrepreneurs can only afford to pivot maybe once or twice, if they're lucky, Rattray had the power of community behind him. And that power can take you a long way.

Rattray did what most others could not, he managed to not only build a huge community that loved what he was doing, but he was also able to keep them loyal to his brand even while undergoing multiple changes. You don't have to be in social enterprise to understand the magnitude of such an accomplishment, and just how valuable it can be to any business.

Luckily for our listeners, Rattray knows exactly how to do it.

In this episode you'll learn:

  • Why a name is everything. Rattray goes into detail about how to find the right name for your company
  • Why you always need to find investment before you launch
  • How to take advantage of upsells and cross-sells to increase your bottom line
  • Pivoting and changing your business model
  • The how-to guide for mobilizing your community using content
  • & so much more!
Direct download: FP174_Ben_Rattray.mp3
Category:general -- posted at: 1:09pm AEST

If you don't know Kevin Kelly's name, you undoubtedly know his work. Staying mostly behind the scenes, Kelly has quietly influenced the world as we know it, from pop culture to how we interact with digital technology.

He launched and built up one of the most influential media brands in the world, with a devoted audience of millions—a brand that's published, and even launched the careers of Pulitzer Prize winners, presidents, filmmakers, and of course, billionaire entrepreneurs.

Kelly is co-founder of the one-and-only Wired magazine.

In his time as editor-in-chief at Wired, Kelly was a pioneer of helping the world understand and interact with the internet and digital technology at large, as their role in our lives exploded. Since then, he's gone on to publish multiple books and launch multiple successful businesses. Throughout this interview, though, one theme persists:

Kelly is a true futurist.

Not only have many of his predictions about the future come true, from crowdfunding to wearable technology, but his keen ability to hack into these cultures early on, before they've hit the mainstream, has been the key to his success.

Luckily for our listeners, Kelly reveals in this sweeping interview his methodology for culture-hacking and how he's just so darn good at predicting the future.

In this episode, you'll learn:

  • Kelly's method for culture-hacking an audience and building a worldwide brand
  • The future of print media, and how digital entrepreneurs can take advantage of it
  • A rare behind-the-scenes look at the history of Wired
  • The true meaning of "a thousand true fans" and what it means for entrepreneurs
  • How to package every product "like a magazine"
  • & much more!
Direct download: FP173_Kevin_Kelly.mp3
Category:general -- posted at: 6:03am AEST

For any startup to be successful, it's going to need an amazing team. It's why Fortune 500 companies are willing to pay their executives so much, and invest millions of dollars into finding and hiring the right people.

For the founders of startups, though, especially those that are bootstrapping, there's barely enough money to pay themselves, let alone hire anyone anyone else. The challenge of finding the right person to bring onto your team becomes that much harder.

It's a position most founders find themselves in when they need to start bringing on new staff, and Cyan Ta'eed was no exception.

In the beginning of Envato, one of the world's leading digital marketplaces with over 1.5 million active customers, it was just Ta'eed and her two other co-founders. It was a 100% bootstrapped operation, and still is today, and for a while, the three-person team was enough. But they soon quickly realized that if they were to grow any further, they needed to grow their team.

"We couldn't offer above market, because so many startups who had taken funding to get these amazing, sort of, guns. These people who can command these incredibly high salaries," Ta'eed says. "So instead we would look for people with great potential, people who were entrepreneurial themselves, people who we knew could take the ball and run with it."

Ta'eed hit the pavement and began the seemingly impossible task of finding that unicorn who's driven, entrepreneurial, and a problem-solver. In the end, though, she found a system that made finding and hiring exceptional talent, exceptionally easy.

In this interview you'll learn:

  • Where to look for when hunting for A-grade talent
  • How to know whether your new employee is really going to help you grow
  • What a highly effective founding team should look like
  • How to juggle building multiple products without losing focus
  • How Ta'eed disrupts an entire industry
  • & much more!
Direct download: FP172_Cyan_Taeed.mp3
Category:general -- posted at: 6:14am AEST

Despite being a prolific investor as one of the judges on Australia's Shark Tank, Janine Allis would rather sell her family home than seek investor funding. How do we know? Well, that's precisely what she did to start her own business.

Allis started her first business while on maternity leave, and it was then, like so many entrepreneurs, when she realized she didn't want to live by someone else's rules anymore. The result was Boost Juicea retail empire that stretches over 500 stores across the globe, making it the largest and most profitable juice bar chain in the world.

While Allis certainly isn't entirely against the idea of taking investor money, she does caution entrepreneurs that raising capital should never be the first goal. And she has some indispensable advice on how to avoid the common money traps so many entrepreneurs fall into.

The most important stake any entrepreneur has in their own company is their equity and the passion they have for their own project. Bringing on investors not only means that you'll lose out on some of your equity, but it also means that you may have to make room for someone else's passion and vision for the company. And, most of the time, investors are more interested in the bottom line as opposed to the founder's ideas.

"I'm a firm believer that you only ever ask for money when you don't need it," Allis says.

She has seen firsthand how many entrepreneurs get caught up attempting to solve all their problems by throwing everything they have into fundraising—a Hail Mary pass that, more often than not, ends up hurting a business in the long run.

To help you avoid that common pitfall, Allis has some choice pieces of advice that you need to hear.

In this episode you'll learn:

  • The simple solution to avoiding the money trap and investors
  • Expert advice on how to build your business to grow as fast as possible
  • Her secrets to building a killer brand that connects with millions
  • What to expect when dealing with investors, and how to know if one is right for you
  • How to have it all as an entrepreneur. No concessions, and no compromises
  • & so much more!
Direct download: FP171_Janine_Allis.mp3
Category:general -- posted at: 6:10am AEST

Greg Mercer built an entire lifestyle business without having to build his own products, distribution network, or even an online store.

Instead of creating his first business from scratch, Mercer took advantage of the tools around him and started selling products on Amazon. It worked, to the point that he and his wife were both able to quit their jobs and start traveling the world. He had achieved the dream that so many of us are working toward, all by cleverly riffing on an industry giant.

Within two weeks, though, he was bored. Fortunately for us, Mercer's next project is helping others find similar success.

Selling everything from wrist braces to cages for tomato plants, Mercer realized he had stumbled upon a proven formula. A formula he could use over and over again that allowed him to find products people wanted, sell them on Amazon, and turn a significant profit. The next step was obvious.

Mercer built a tool called Jungle Scout, which allows other ecommerce entrepreneurs to find opportunities to make money on Amazon. Despite having limited himself to a budget of only a thousand dollars, having absolutely no coding or technical experience, or any experience in the software business, Mercer hacked together Jungle Scout, his first bona fide startup.

After starting out as a complete novice, Mercer began learning on the job, and despite encountering some classic hurdles and mistakes, has found himself at the head of a fast-growing company.

In this episode, you'll learn:

  • Mercer's strategy that anyone can use to make a profit on Amazon
  • What every ecommerce entrepreneur should be aware of when selling online
  • How to build a SaaS from scratch, with no tech skills
  • What to watch out for in ecommerce opportunities
  • How to build and manage a remote team that actually works
  • & so much more!
Direct download: FP170_Greg_Mercer.mp3
Category:general -- posted at: 2:15am AEST

Mark Cuban is a very busy man. As one of the star judges of the hit show Shark Tank, Cuban has invested in nearly a hundred different startups that have appeared on the program. That's not even mentioning the investments he makes outside of the show, and the dozens of other businesses he's founded or manages himself.

So how does a single person manage to keep so many plates spinning at the same time?

His secret: Hiring the right people.

Cuban is always making sure he has the best people staffing the hundred-plus businesses he's involved in. And while hiring seems like a pretty basic business practice, finding the right talent is a true art, and one that Cuban has mastered.

It's a process of finding the right person, putting them in the right environment, and then continuing to build their personal growth and passion about the job they're doing. And in Cuban's case, multiplying the process for a thousand-plus employees.

That may sound hard, but Cuban says the one skill every founder and entrepreneur needs to master if they want to become a billionaire businessman, is knowing how to be a leader. If you don't know how to recruit and manage people, you're just not going to make it very far.

It can take decades of trial and error to figure out how to deal with the thousands of different personalities out there, and knowing what to prioritize at any given time. But Cuban has figured it out, and he's sharing his secrets with us here.

In this episode you'll learn:

  • The art of finding and nurturing the talent in your team
  • How to deal with problem employees, without just firing them
  • Whether mentors really matter—when you need them, and when you don't
  • How Mark Cuban manages a thousand-plus employees
  • The surprising reason you shouldn't be looking for invesment
  • & so much more!
Direct download: FP169_Mark_Cuban.mp3
Category:general -- posted at: 2:24am AEST

Often as entrepreneurs, we envision success as owning more objects, like a fancy watch, a big house, or a fast car. But what if there were a more authentic, more enriching version of success? One that involves less?

That's the question that Joshua Fields Millburn seeks to answer, as one half of the duo who call themselves The Minimalists. Millburn and partner Ryan Nicodemus have built an entire brand around how to live a better life by having less.

Millburn runs a website with an annual audience of more than 4 million readers, hosts one of the most listened to podcasts in the world, has published multiple best-selling books, and has even produced and filmed a critically acclaimed documentary. In this episode of the podcast, Millburn gives us the crash course on redefining success, and otherwise decluttering and streamlining your life.

Millburn first adopted the minimalist lifestyle after spending years climbing the corporate ladder. By the time he was in his late 20s, he realized he wasn't happy, despite having everything that he thought he wanted.

"I always felt I was one promotion away in my career from being happy. But of course, I had all these other things that came with that ostensible success like stress, and anxiety, and discontent, and overwhelm, and of course a boatload of debt," Millburn says.

He says that too many entrepreneurs get caught up in the idea of constantly wanting to achieve the next goal, and the one after that, and so on so forth. But rarely do they ever take a moment to think about why they're working so hard, and to what end.

According to Millburn, the key to achieving happiness is to pursue meaning over anything else. And to do that you must first ask yourself, "How can my life be better with less?"

In this episode you'll learn:

  • What the minimalist lifestyle is and how to start living it today
  • The key to finding things that give value to your life
  • Balancing the hunger entrepreneurs have with the minimalist lifestyle
  • What it means to give yourself permission to be happy
  • & so much more!
Direct download: FP168_Joshua_Fields_Millburn.mp3
Category:general -- posted at: 6:33am AEST

Great entrepreneurs have that rare ability to take risks that others find crazy, coupled with a single-minded determination that allows them to bring their visions to life. But some of us want to do much more with that talent than simply create a profitable company. Some of us want to change the world for the better.

If that sounds like you, you're going to want to hear what Samasource founder Leila Janah has to say in this episode, as that's exactly what she's done during her incredible career.

Janah runs one of the most influential social enterprises around, responsible for raising over 30,000 people around the world up from poverty, and rebuilding entire communities.

Rather than the typical charity model of distributing donations to make an impact, Janah realized early on that in order to combat global poverty, she needed to come up with a more innovative solution. She decided to build a social enterprise that operates like a business, but in service of reducing poverty.

Janah focused on empowering poverty stricken communities in India, Haiti, Uganda, and more, contacting companies like Google and Microsoft that were looking to outsource their work, and training individuals with the skills they needed to complete that work.

This revolutionary business model has changed the way people think of success when it comes to social enterprises. Janah has shown what happens when you use the powers of entrepreneurship for something other than just profit, and the world is so much better of for it.

In this episode you'll learn:

  • The role of the entrepreneur when it comes to social enterprises
  • Keys to leading and managing a global enterprise with thousands of employees
  • How to pitch your social enterprise to investors and secure funding
  • Why every business should be looking to make a difference in the world
  • The skills that every entrepreneur needs to succeed, no matter what industry you're in
  • & so much more!
Direct download: FP167_Leila_Janah.mp3
Category:general -- posted at: 9:56pm AEST

Ask yourself, just how many hours have you sunk into that palm-sized rectangle of plastic, metal, and glass known as the smartphone?

As the co-founder of Kabam, one of the world's leading companies in mobile games, Holly Liu might be able to provide an answer to that, and it would likely be a huge number. But luckily for us, and our listeners, she's far more interested in talking about how she managed to build a billion-dollar company from scratch by giving away her products for free.

If you don't know Kabam already, you've probably heard of the company's hugely popular games, such as Kingdoms of CamelotThe Godfather, and Marvel's Contest of Champions, just to name a few. Each one operates on a "freemium" model, where users can download and play games for free.

This might sound crazy, but it's actually a ludicrously lucrative business model, with Kabam making the bulk of their revenue through in-game currency and advertising revenue. Kingdoms of Camelot alone has, to date, grossed over $250 million.

The secret behind Liu's success is simple, she just asks herself:

"Where are the people?"

That question led to Kabam's successful pivot into building a Facebook game and tapping into the power of viral marketing, to even partnering with the major studios in Hollywood to build games for upcoming movies and franchises.

For Liu, there's so much more to surviving in the mobile gaming industry than building a successful product, especially when great products exist on almost every corner. It takes an equal amount of dedication to marketing, finding the right partnerships, and, as always, understanding where your customers are.

In this episode you'll learn:

  • What opportunities lie within the mobile gaming industry
  • How to take your business where the customers are
  • How to pivot when your first, second, and even third ideas fail
  • What goes into making a product as viral as possible
  • Why you should look to grow your company through the power of partnerships
  • How to make being social your competitive advantage
  • & so much more!
Direct download: FP166_Holly_Liu.mp3
Category:general -- posted at: 11:00pm AEST

After 16 years in the game, Patel has established himself as one of the most prolific marketers in the world. Hundreds of thousands of entrepreneurs eagerly await his latest blog post, video, or product.

And yet, Patel says, more than anything, he deeply regrets building a personal brand. Pretty shocking, considering the majority of Patel's businesses have been built off the back of his personal brand and status as an influencer.

"If I had to do it all over again I wouldn't build a personal brand, it was the biggest mistake of my career. I built a personal brand by accident," Patel says.

For all the benefits and advantages Patel's personal brand has brought him, he also feels that it's seriously held him back in other areas he wants to pursue. While it's brought him more clients as a consultant, that very same notoriety has made it difficult for him to even build businesses without encountering problems.

But, like any other entrepreneur, Patel isn't stuck on what might have been. He's here to talk with us about what he's doing now, and how he manages to wield the double-edged sword of having millions of people recognize his name as an entrepreneur and a marketer.

In this episode you'll learn:

  • Simple marketing hacks that anyone can use right now
  • Why building a personal brand can hold you back as much as it can provide opportunities for success
  • A behind-the-scenes look at what Patel is working on right now and his past businesses
  • The astoundingly simple way to create content that drive you traffic, qualify leads, and boost your SEO
  • What most people get wrong about content marketing according to Patel
  • & so much more!
Direct download: FP165_Neil_Patel.mp3
Category:general -- posted at: 11:54am AEST

What separates the companies that make millions of dollars from those that never make it?

It's not the vision, or the product, or even the founder, it's the people. You can't build a successful business, let alone grow it, without having the right people by your side.

It's a lesson that Ryan Holmes, CEO and founder of Hootsuite, is intimately familiar with. Today, Holmes finds himself at the helm of one of the fastest-growing companies around. Hootsuite is a mega-popular social media tool that boasts over 16 million customers and 5 million messages powered by its service every single day. As of 2013, Hootsuite has raised an impressive $165 million in funding from some of the biggest VC firms in the world and continued to dominate the social media landscape.

In this episode, Holmes advises founders that when it comes to finding your first batch of employees, you're looking for the "Swiss Army knives" and "paratroopers" of the world. People who have the ability to take the smallest instruction and make their own way. It can be tempting to want to hire specialists in the early days, but as Holmes explains, they're more likely to hold your business back in the early days.

Finding the right people is as much about timing as it is finding the right skillset. And according to Holmes, the number one reason Hootsuite managed to grow so fast is that he had the right people by his side from day one.

In this episode you will learn:

  • Why having first-mover advantage means nothing in the startup world
  • What the number one focus of any startup should be in the early stages
  • Building virality into your product. Why, and most importantly, how.
  • Where to find and deploy the "shock troops" of your team
  • Why you should actually stay away from Silicon Valley when looking for A-players
  • & so much more!
Direct download: FP164_Ryan_Holmes.mp3
Category:general -- posted at: 2:43am AEST

Change is inevitable in the startup world, and only the best entrepreneurs stay on top of the game by evolving with it. Steve Huffman, co-founder and CEO of Reddit, knows this all too well, and in this episode of the podcast, Huffman explains how he's ushering the social media giant to the next level.

Huffman was there in the very beginning, when he and roommate Alexis Ohanian first pitched the idea for Reddit to Y Combinator, and he's at the helm again today as the company strives to reach new heights.

On the surface, nothing much has changed about Reddit since it was first created in their college dorm room 12 years ago. The layout, font, and even the logo remain relatively the same. But over the years, it's grown into a massive and highly influential web of online communities.

Today, Reddit is one of the largest websites in the word, with over 250 million active users and 300 million visitors a month. Beyond boasting impressive traffic numbers and a $1.8 billion valuation, Reddit is home to over half a million active online communities, where users can find anything from a laugh to help with addiction or relationships. The company's now making some serious changes under the hood, even to its appearance.

How things have changed.

"It's important to realize that there was never a point in which there was an idea for Reddit the way it exists today. There was just the idea we started with, to build a place where people can find interesting stuff every day. Not anything in particular, just interesting stuff," Huffman says.

In the early days, no one really knew what they were doing, and Reddit has experienced numerous stumbles and challenges along the way. But Huffman's managed to stay on top, and he's learned a tremendous amount along the way. He shares with us what it was like to create one of the largest sensations of the internet, and how to stay ahead in an ever-changing industry.

In this episode you will learn:

  • Why you should focus on content instead of marketing
  • The difference between customers and users, and why you need to know what separates the two
  • How to build an online community that rivals the population of most countries
  • Picking your battles—when to take a step back and when to step up
  • What Huffman's
Direct download: FP163_Steve_Huffman.mp3
Category:general -- posted at: 2:54am AEST

"How can I solve a problem in the fastest way?"

It's a question that Maneesh Sethi asks himself almost every day, and it's been the main driver behind who he is as a person, and as an entrepreneur. You see, Sethi lives a life of what you might call extreme productivity, and he wants to help you do the same.

The question has manifested in a variety of ways throughout Sethi's life, including starting his own productivity blog, Hack the Systemwhere he examines how people can be more productive and focused in their lives by looking for unconventional solutions. Then there was the time he paid someone to follow him around and slap him in the face every time he was being unproductive.

Sethi's latest endeavor is par for the course in his never-ending quest to become as productive as he possibly can. As the founder and CEO of Pavlok, a wearable device designed to help you build better habits by literally shocking the bad ones out of you, Sethi is determined to help people transforms their lives. Even if it means giving them a zap every now and then.

Sethi knows a thing or two about the power of a little negative reinforcement, as evidenced by the aforementioned slapping, and the way having your back against the wall can bring out your best ideas.

"Our company has been a consistent sufferer of almost-death, followed by me figuring out something to help us survive, followed by learning a lot from that experience," Sethi says.

To save his company from bankruptcy, Sethi has turned to investors, crowdfunding, and even appeared on the hit show Shark Tank to keep his company alive. Through it all, he's developed a knack for finding the best way out, no matter what life throws at him.

In this episode you will learn:

  • Fool-proof tactics on how to become more focused and increase your overall productivity
  • How to build and successfully iterate a physical product for market
  • What to do if you find yourself on national TV
  • Where to go when you need funding for your idea, Sethi's answer might surprise you!
  • How making more sales can actually bankrupt your business, and Sethi's solution
  • Hacks to supercharge your crowdfunding gain and blow past your fundraising goal
  • & so much more!
Direct download: FP162_Maneesh_Sethi.mp3
Category:general -- posted at: 5:22am AEST

Jodie Fox loves her shoes.

But unlike your average shoe lover, Fox was able to turn that love first into a living room-based passion project, and then a multimillion-dollar online business. She's the co-founder and CEO of Shoes of Prey, a popular online store that allows customers to design and customize their own shoes.

Shoes of Prey recently raised $25 million in funding as part of its Series B round, and while that's impressive enough on its own, Fox managed to validate, launch, and break even on her very first business within two months. That's mind-bogglingly fast, even by startup standards.

The former lawyer also skilfully scaled her business with a powerful mix of influencer marketing and deals with wholesale giants like Nordstrom, to the point that over 5 million shoes have been designed on the platform. Not bad for a first-time entrepreneur.

"I think a founder's job when you start a business is just to do everything that you haven't hired anyone to do just yet," Fox says.

Together with her co-founders, Fox followed her passion, validated her idea, built her first online store, and from there the wins kept on coming.

We are very lucky to have the opportunity to interview her and receive step-by-step instructions on how this first-time entrepreneur managed to build herself a worldwide business with million of customers at lightning-fast speeds.

In this episode you'll learn:

  • Why you need to tap into the power of micro-influencers to quickly grow your brand
  • How to ink deals with the top brands in your niche
  • Exactly when to look for funding, and when to keep on bootstrapping
  • How to conceive, validate, and launch your idea in as fast as two months
  • What holds most online businesses back from being successful, and how to overcome them
  • & so much more!
Direct download: FP161_Jodie_Fox.mp3
Category:general -- posted at: 12:48am AEST

"The truth is I didn't like working for somebody else."

Most entrepreneurs start their own business because they want to take charge of their own destiny, and for Brian Clark, the CEO and founder of Rainmaker Digital, Copyblogger, StudioPress, and the Rainmaker Platform, his story doesn't start off any different. It doesn't matter if you haven't heard of Clark before, but if you've been anywhere near the startup space in the past 15 years or so, you've undoubtedly felt his influence.

With his first successful business he stuck with what he knew, taking his four years of experience in law and starting his own small law firm. He quickly set himself apart from the rest of the competition with his natural marketing instincts and his ability to build an audience.

"What most young attorneys can't do is develop clients, and I figured out how to do that. And in that moment an entrepreneur was born. I was just so amazed that I could develop a business by myself with just an email newsletter. No one understood what I was doing at the time, they thought I was crazy, but it worked!" Clark says.

A few years, and a couple more businesses later, Clark began working on a small blog that would come to be known as Copyblogger, one of the most influential content marketing blogs in the industry. Some of the world's top content marketers can fondly remember turning to Copyblogger early in their careers to learn how to write better headlines and become better writers.

Clark helped blaze the trail for this new style of marketing, and to this day, he's still pushing the boundaries of what is possible.

While most people are still trying to figure out whether to focus on building the perfect product or growing their audience, Clark has devised a strategy that's allowed him to do both at the same time, all while growing his multiple businesses at warp speed.

It should really come as no surprise that, here at Foundr, much of our own business model and content marketing efforts have been directly inspired by Clark and his successes. This is why we're very excited to present to you this eye-opening interview with the one and only Brian Clark.

In this episode you will learn:

  • The chicken or the egg? Settling the startup debate between which comes first: building the perfect product or building your audience
  • What are you good at? How Clark finds co-founders who complement his strengths and weaknesses
  • The unique business model of combining content, SaaS, digital and physical products for maximum profit
  • Clark's step-by-step instructions on how to build the perfect product
  • Why people aren't paying attention to your brand and what you can do about it
  • & so much more!
Direct download: FP160_Brian_Clark.mp3
Category:general -- posted at: 4:52am AEST

Jonathan Siegel has started close to a dozen different companies—some have been hugely successful, others didn't quite go as planned, and for one, he sold his shares after a falling out with his co-founders. Siegel has been a serial startup founder since he was just 12 years old. Now at 40, he has seen it all, and he's sharing his lessons—on products, investors, and selling a business—with Foundr.

"It doesn't feel like a job, as much as it just feels like I'm getting paid to do something for fun," Siegel says, about his love for the entrepreneurial life.

Siegel has had a knack for entrepreneurship since he was putting together and selling computers all the way back in 1989. From there, he's had a lifelong passion for creating something new every chance he got. Whether it was starting his own businesses, constantly creating new products, or building products for other people.

For Siegel, entrepreneurship isn't so much a money-making exercise or a career, but a lifestyle that constantly allows him to strive forward and look into the future.

"If you do something as a creative outlet, the amount of money is not the goal. And I don't believe that every entrepreneur is running around thinking about how much money they have in their accounts. I think that every entrepreneur runs around thinking, 'Hey I want to bring this thing to life. I want to create something bigger than myself. I want to see the thing that I create influence other people in the way that they work and the way that they live,'" Siegel says.

This passion has helped Siegel learn many valuable lessons on his own journey, not just about himself, but about what entrepreneurship is all about.

In this episode you will learn:

  • How to turn entrepreneurship from a career to a creative outlet
  • Understanding the difference between a startup that's successful on paper, and one that works in real life
  • How to handle disputes between co-founders
  • Why it's so important to understand your motivation as an entrepreneur
  • The lifecycle of building companies that you intend to sell
  • & so much more!
Direct download: FP159_Jonathan_Siegel.mp3
Category:general -- posted at: 2:29am AEST

In the late 1970s, Brian Smith was a young Australian surfer looking for the next big thing. Little did he know that while flipping through a magazine, he would stumble upon an idea that would grow into one of the world's most iconic brands. With more than $1 billion in sales worldwide, you can find the UGG brand in millions of households.

What does it take to build such an iconic brand?

Smith openly admits that, at the time, he had no idea. He struggled to get people interested in his product, and even when they were interested, he found it difficult to turn them into customers. In fact, after his first season of sales, Smith had sold only 28 pairs of boots. The outlook was not good for his fledgling brand.

While many entrepreneurs would become disheartened and give up, Smith realized that no company becomes successful overnight.

"You can't give birth to adults," Smith says.

Smith believed that every successful business in the world has to go through a period of infancy, where almost nothing happens, and only then can you start getting the traction and momentum you need to explode your business.

For UGG, that infancy stage would go on for another four years until that lightbulb moment came and Smith figure out what he had to do. What happened next turned sales from only $15,000 to $200,000 almost overnight.

In the years that followed, Smith would find his sheepskin boots on the feet of young surfers, snowboarders, and eventually A-list celebrities.

In this episode you'll learn:

  • The stages of building a global brand and how to move through each one as quickly as possible
  • When to hold em' and when to fold em', Smith details how to recognize when the moment is right to sell your business
  • How to use grassroots events to build your early customer base
  • Why the most important element of your brand is not what you think
  • & so much more!
Direct download: FP158_Brian_Smith.mp3
Category:general -- posted at: 2:12am AEST

Andrew Barnes's company  GO1 is a Y-Combinator alum that's raised over $4 million in funding, grown to over 400,000 users, and is currently the world's largest onboarding, compliance, and professional development learning platform. If that weren't impressive enough, Barnes hit those benchmarks in under three years. The secret weapon? An airtight B2B, or business to business, sales process.

In our interview with Barnes, he shares with us how the Australian-startup-that-could found its path to achieving explosive growth and influence, eventually ranked as one of the 100 most disruptive startups in the world. He also tells us how he and his team mastered B2B sales, a huge arena of entrepreneurship today.

"I remember in YC we were up late just basically cold-calling trying to generate interest and see whether they'd take us, we'd try Google Adwords and spent a fortune on that, we tried a whole host of different options. And what we eventually stumbled on is a model with sales development reps that identify people that match our criteria," Barnes says.

Then it's just a matter of knowing the right person to contact, what to say, and when to say it. It's a process that Barnes has mapped out to a T, with a ton of little tricks and hacks along the way to get the job done. Barnes, much to our benefit, shares this sales process to Foundr and our audience, along with the many lessons he's learned as a lifelong digital entrepreneur.

In this episode you'll learn:

  • One simple hack to turn your cold calls into success stories
  • How to find and secure high-profile investors for your startup, locally and internationally
  • How to find A-players for your team no matter where you are
  • The keys to running a distributed team and keeping everyone on track
  • Why doing less can actually make you a better entrepreneur
  • & so much more!
Direct download: FP157_Andrew_Barnes.mp3
Category:general -- posted at: 8:58pm AEST

Sophia Amoruso was a community college dropout, working a variety of odd jobs to support herself, when she set up a humble eBay store called Nasty Gal Vintage. The rapid growth that followed has become the stuff of startup legend, and in this episode of the podcast, Amoruso shares what she learned from the roller-coaster ride of Nasty Gal, and tells us about her new endeavor, Girlboss Media.

Over the course of a decade, Amoruso had a meteoric rise, during which she became the head of a retail empire, and was named one of the richest self-made women by Forbes in 2016. She also became a symbol of brash millennial entrepreneurs and a trailblazing icon for female entrepreneurs especially, following the release of her New York Times bestseller #GirlBoss.

Then, the same year Netflix developed a scripted comedy loosely based on the book, Nasty Gal found itself filing for bankruptcy. In those 10 years, Amoruso had bigger highs and lows than many entrepreneurs experience in a lifetime, but the story isn't over yet.

Today, Amoruso has moved on and is working on continuing the momentum of her book and the devoted following she built around her story. Nasty Gal Media is as focused as ever on helping women around the world launch their entrepreneurial careers.

We were very fortunate to be able to interview Amoruso amid her hectic schedule of growing a new business. She shared with us the many lessons she's learned from her exciting and colorful career, along with fascinating insight into what makes a brand explode, and how to come out on top in today's tumultuous startup world.

In this week's episode you will learn:

  • Amoruso's guide to creating a brand that leaves a mark on customers and investors alike
  • Key lessons learned from the rise and fall of a nine-figure business
  • Customer services mistakes that can kill any business
  • How to create products that are inherently sharable and immediately recognizable
  • & so much more!
Direct download: FP156_Sophia_Amoruso.mp3
Category:general -- posted at: 5:47pm AEST