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    Business

    The Foundr Podcast with Nathan Chan

    Hear the stories, learn the proven methods, and accelerate your growth and future through entrepreneurship. Welcome to The Foundr Podcast with Nathan Chan. 

    About the show: 

    For over a decade, The Foundr Podcast with Nathan Chan has been a leading entrepreneurship podcast for open-book conversations with, by, and for founders. Whether you’re starting, building, or dreaming about your business, The Foundr Podcast is where you can access experienced founders who’ve been in your shoes to learn their proven methods, lessons from failure, and inspirational stories. 

    Past guests include Emma Grede, Mark Cuban, Neil Patel, Kendra Scott, Alex Hormozi, Trinny Woodall, Tim Ferriss, Sophia Amoruso, Simon Sinek, Tony Robbins, Amy Porterfield, Ed Mylett, Michelle Zatlyn, Reid Hoffman, Scooter Braun, Dany Garcia, Marc Lore, Ariana Huffington, Pat Flynn, Lewis Howes, Jordan Harbinger, and many more. 

    About the host: 

    Nathan Chan is the CEO of Foundr and the creator of The Foundr Podcast. Chan literally started from knowing nothing. He was just an average guy working in a 9-5 job he utterly hated. He knew nothing about entrepreneurship, nothing about startups, nothing about marketing, and nothing about online or how to build a business. In the past decade, Chan’s built Foundr into a global leader in entrepreneurial education, helping tens of thousands of aspiring entrepreneurs start and scale their businesses. 

    Need help with your business? 

    Visit foundr.com/foundrplustrial to join a global community of entrepreneurs, gain access to proven strategies, and fast-track your business growth confidently.

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    Copyright: © All Rights Reserved 2020 Foundr Media PTY LTD

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    Latest Episodes:
    251: How a Humble Typewriter Salesman Started a Software Company Now Worth Billions, With Red Hat Co-Founder Bob Young May 23, 2019
    Show notes

    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…

    Full show notes at the publisher

    250: How Dollar Shave Club Used Mission, Humor, and Viral Videos to Lead Up to a $1B Acquisition, With Michael Dubin May 16, 2019
    Show notes

    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

    249: How Blinkist’s Bite-Sized Book Summaries Attracted 9M Users, with Niklas Jansen May 07, 2019
    Show notes

    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

    248: On Emerging Technologies and Creating a World of Abundance, With Peter Diamandis of XPRIZE May 02, 2019
    Show notes

    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

    247: Finding Your Focus as a Serial Entrepreneur, With Jake McKeon of Coconut Bowls Apr 24, 2019
    Show notes

    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

    246: Co-Founder Matthew Brimer on General Assembly’s Tremendous Growth and $412M Exit Apr 17, 2019
    Show notes

    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

    245: Crafting a Brand Worn by the NBA, NFL, AND Navy SEALS, With Aidan Clarke of 2XU and SA1NT Apr 09, 2019
    Show notes

    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

    244: Viral Growth and Influencer Marketing in Ecommerce, with Ben Francis of Gymshark Apr 03, 2019
    Show notes

    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

    243: The 5 Traits That Help Founders Go From Dreamer to Doer, With Kim Perell of Amobee Mar 26, 2019
    Show notes

    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

    242: How Tony Fernandes Bought an Airline for Under $1 and Made it a Leading Carrier Mar 21, 2019
    Show notes

    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

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