When Derek Sivers started CD Baby, he wasn’t planning on building a major business. He was a successful independent musician who just wanted to sell his CDs online. When no one would help him do it, he set out on his own and built an online store from scratch.
He started in 1998 by helping his friends sell their CDs. In 2000, he hired his first employee. Eight years later, he sold CD Baby for $22 million.
Sivers didn’t need a business plan, and neither do you. You don’t need to think big; in fact, it’s better if you don’t. Start with what you have, care about your customers more than yourself, and run your business like you don’t need the money.
Key Takeaways
Dont persist trying to make things work that aren’t working. Keep improving and inventing ideas until you have a hit, because when you have a hit your product or service will promote itself. Instead of trying to create demand, you’re hanging the huge demand.
- Try many things and put each of them out there into the world and see what sticks. If it’s not a hit, switch strategies.
Once you’ve discovered your hit and people are demanding your product, how can you ensure a successful business?
Adopt the customer point of view aim to build them a utopian experience. Throwing in small unexpected moments of generosity. Doing something small that the competitors aren’t doing, but the cusomters really appreciate.
“Its counterintuitive, but the way to grow your business is to focus entirely on your existing customers. To just thrill them and they’ll tell everyone.”
When your customers become your raving fans, your company will start to experience some serious growth. At the point you need to delegate or die. Answer questions based on this philosophy of why he would do what he would do.
- Explain philosophy.
- Verify understanding this thought process.
- Have others document this philosophy.
- They can make this decision without his permission as long as they followed his philosophy.
You shouldn’t be afraid of selling your company if selling your company will make you happier and will be better for the company overall to bring in a leader who really wants to lead the company.
When you own a company, you make up the rules. If you want to sell, sell. If you want to stay small, stay small. Your customers won’t care if you’re expanding, they only care that you’re taking care of them. Being smaller or letting someone else take over, may be the best way to provide that care.
“Making a company is a great way to improve the world while improving yourself. When you make a company, you make a utopia. It’s where you design your perfect world.”
