Are you ready to challenge traditional business norms and thrive despite the odds? Do you want to learn how to create a unique product or service that stands out in a competitive market? Interested in exploring unconventional business wisdom from a successful software company that dismisses growth and meetings for the sake of efficiency and clever solutions? Do you want to discover the magic of creating work that is truly valuable and makes a difference in the world? Dive in and get ready to redefine the way you work and do business!

Rework

Basecamp is a profitable, small software company with over 3 million users worldwide. They started as a 3-person team in 1999, unhappy with existing project-management software. So, they built their own, Basecamp, which now generates millions in annual profits. They also have Highrise, Backpack, and Campfire, used by a broad range of small businesses and teams.

Critics call them a "fluke" and advise others to ignore them. They can't fathom how Basecamp rejects growth, meetings, budgets, and still succeeds. Critics believe in selling to the Fortune 500; Basecamp caters to the Fortune 5,000,000. Critics say you need a PR firm to make headlines; Basecamp has proven them wrong multiple times. Critics tell others to follow conventional business rules, but Basecamp has made it all up as they go.

Their method is simple: they start by dismantling business norms, then rebuild them in a way that makes sense to them. That means understanding that anyone can be in business today, that one doesn't have to work insane hours, that long-term business planning is essentially guessing, and that size and growth aren't always indicators of success.

They believe in breaking free from the idea of the "workaholic." Working more doesn't mean one cares more or gets more done. It just means one works more. Instead, they focus on efficiency and clever solutions, not just brute force.

Lastly, they think it's time to retire the term "entrepreneur." It has become a loaded term, implying a members-only club. They prefer "starters," encompassing anyone who has an idea, a touch of confidence, and the drive to get started. 

Welcome to their world, where they challenge the status quo and thrive despite the odds. 

Can a Small Software Company Challenge Conventional Business Norms and Still Succeed?

Want to make a dent in the universe? You don't have to cure cancer; just make sure your work is valuable and makes a difference. Create something that matters, like Craigslist and the Drudge Report that disrupted traditional models with just a few employees. 

The most straightforward way to create a great product or service? Scratch your own itch. Design what you know, and solve your own problem. James Dyson did it with his cyclonic, bagless vacuum cleaner, and Vic Firth did it with his perfect pair of drumsticks. Mary Kay Wagner knew her skin-care products were great because she used them herself. 

Don't just dream, do. Ideas are cheap and plentiful, it's the execution that matters. Don't let time be an excuse. Squeeze out a few extra hours a week, and you'll have enough to get something going. And remember, it's entirely your responsibility to make your dreams come true.

Great businesses have a point of view, not just a product or service. Having a strong stand attracts superfans who will spread the word passionately. Be proud of what your products do and don't do. Stay true to your belief like Whole Foods and Vinnie's Sub Shop.

Avoid outside funding as much as possible. Spending other people's money may sound great, but there's a noose attached. You give up control, profit becomes secondary, and it distracts you from building something great.

Start a business, not a startup. A business without a path to profit is just a hobby. Think about how to make your project grow and succeed, not how you're going to jump ship. Build your business with the intention of getting customers to love you, not to be bought.

Embrace the idea of having less mass. The more mass you have, the harder it is to change direction. Avoid long-term contracts, excess staff, permanent decisions, meetings, and office politics whenever you can. Keep your mass low so you can change anything quickly.


Building a Business That Makes a Dent: Lessons from Craigslist, Dyson and Mary Kay

Embrace the constraints that come with limited resources. They force you to be creative, do more with less, and prevent waste. All great products are born out of constraints, like Shakespeare's sonnets or Southwest's decision to only fly Boeing 737s to save on costs. 

Every product has an epicenter, the one thing that cannot be removed. For a hot dog stand, it's the hot dogs. Identify your epicenter and focus all your energy on making it the best it can be. Don't let unnecessary details distract you, nail the basics first. 

Indecision can lead to piles of unresolved problems. So, make decisions, build momentum, and move forward. Remember, you don't have to live with a decision forever, you can always correct it later. 

Great products come from curating and focusing on what's truly essential. Just like a great museum, it's not about having everything, it's about having the best. 

When things aren't working, instead of throwing more resources at it, cut back. Focus on what won't change, like Amazon.com's fast shipping and affordable prices, which will always be in high demand. 

The tools you use don't define the quality of your work, your skills do. So, don't obsess over fancy equipment, focus on what you have to say or do. 

Every product or service has a by-product and great businesses see opportunities in these. They turn their waste into profits, like the lumber industry selling sawdust. 

Lastly, launch your product as soon as it does what it needs to do. Don't wait for it to be perfect, get it out there and make improvements later. Remember, the best way to get there is through iterations.

Can Embracing Constraints and Focusing on the Essential Lead to Great Product Development?

In the business world, documents often create illusions of agreement. When a hundred people read the same report, they inevitably imagine a hundred different things. To avoid this, we must strive to remove layers of abstraction. 

One successful example can be seen in the team at Alaska Airlines who built a new Airport of the Future. Instead of relying on blueprints, they built mock-ups using cardboard boxes and tested systems with real passengers and employees. This approach significantly reduced wait times and increased productivity.

Renowned furniture craftsman Sam Maloof also believed in the power of getting real. He often didn't know how a certain area of a chair or stool would look until he started working with his tools. This approach is something we should all take. Instead of spending time on abstract documents, we should start making something real. 

It's equally important to be mindful of why we're doing what we're doing. We should ask ourselves, are we really solving a problem? Is what we're doing actually useful? Are we adding value? Are we changing behavior? By asking these questions, we ensure we're doing work that truly matters.

Interruptions are the enemy of productivity. If you're constantly working late, it's not because there's too much work, it's because you're not getting enough done due to interruptions. To increase productivity, set aside half the day for alone time and avoid communication addiction. 

Meetings are another culprit of lost productivity. They often lead to off-topic discussions, require too much preparation, and often involve people who waste everyone's time. If you must have meetings, make sure you have a clear agenda, keep them short, invite as few people as possible, and end with a solution.

When it comes to problem-solving, look for a judo solution that delivers maximum efficiency with minimum effort. For instance, if you need a bird's-eye view, instead of climbing Mount Everest, take an elevator to the top of a tall building. This is a judo solution. 

Maintaining momentum is crucial. It fuels motivation and keeps you going. To keep your momentum, build a habit of accomplishing small victories along the way. 

However, at times, it's better to be a quitter than a hero. If a task is taking longer than expected, it may be more beneficial to stop and reevaluate or ask for another perspective. 

Sleep deprivation is a creativity, morale, and attitude killer. Therefore, ensure you get enough sleep. Also, avoid making long-term estimates as we're usually terrible at this. Instead, break down big tasks into smaller ones.

One effective strategy for productivity is making smaller to-do lists. Long lists often get neglected whereas smaller lists are easier to manage and give a sense of accomplishment. 

Finally, make tiny decisions. Big decisions are hard to change and once you make one, it's difficult to be objective. Making small decisions allows for flexibility and reduces the risk of making big mistakes. 

Unlocking Productivity: Lessons from Alaska Airlines and Sam Maloof

In the world of business, imitation can mean failure. While copying might be useful in some learning scenarios, in business, it leads to lack of understanding and growth. It's the layers beneath the surface that make a product or service unique and successful, not just its appearance. 

Copycats remain in a passive position, always following, never leading. The key to success and uniqueness lies in injecting your unique thinking into your product or service, making it something that no one else can offer. 

Take the billion-dollar online shoe retailer, Zappos.com, for example. It stands out by prioritizing customer service, allowing its employees to have lengthy conversations with clients, and ensuring everyone, regardless of their position, spends a month in customer service. 

Similarly, Polyface, an environmentally friendly farm, runs its business based on a strong set of beliefs. Its dedication to feeding cows grass instead of corn and refraining from shipping food sets it apart. It sells a way of thinking, rather than just products, and that's what customers love about it.

Sometimes, positioning yourself as the anti-version of a competitor can be a powerful strategy to attract followers. Dunkin' Donuts, for instance, mocks Starbucks for its "Fritalian" terms and has run taste test campaigns claiming its superiority over Starbucks. Audi, Apple, 7UP, and Under Armour all use this strategy, taking a stand against their competitors and igniting passions among their customers.

The conventional wisdom of beating your competitors by one-upping them is a dead end. Instead, solve simple problems and leave the complex ones to your competitors. Underdo rather than outdo. Fixed-gear bicycles, for example, have become popular for their simplicity and affordability, while the Flip, an ultrasimple camcorder, has gained a significant market share by doing a few things well.

In the end, obsessing over your competitors is futile. It leads to stress and prevents you from improving yourself and your product. Instead, focus on yourself, on your vision. Redefine the rules instead of just aiming to outdo your competitors. If you're just imitating others, there's no point to your existence. Stand for what you believe in, even if it means going down fighting.

Can Imitation in Business Lead to Failure? How Do Successful Companies Like Zappos and Polyface Stand Out?

Embrace the power of saying 'no' to keep your priorities straight. Like Henry Ford, don't always listen to customers' demands; instead, balance between satisfying specific requests and maintaining the product's overall quality. 

The fastest-growing bank in America, ING Direct, practiced this by denying requests that complicated their simple banking model. Be honest and polite when saying 'no', and explain your reasons. It's better to have satisfied customers using a competitor's product than disgruntled ones using yours. 

Avoid the trap of over-customizing your product for a single client, which could lead to alienating your broader customer base. Let your customers outgrow your products, believing it's better to maintain a product that's easy for new customers to adapt to, rather than overly complex for power users. Remember, there are always more potential customers not using your product than those who are. 

Don't let the rush of a new idea lead you to abandon ongoing projects. Instead, let your ideas cool down and evaluate them with a calm mind. 

Ensure your product is 'at-home-good', delivering value and satisfaction well after the initial purchase. This might mean sacrificing flashy features or packaging, but it fosters a long-term relationship with customers. 

Lastly, don't keep an exhaustive record of customer requests. Instead, focus on recurrent requests, as they're likely to be the most important. Let your customers be your memory, guiding you on what truly needs attention.

Mastering the Art of 'No': Balancing Customer Demands and Product Integrity for Business Success

Embarking on a new venture can be an exciting journey, but it can also be filled with self-doubt and fear of failure. Yet, there's a silver lining to being unknown and obscure - you have the freedom to experiment, make mistakes, and fine-tune your craft without the world watching. 

Much like how Dunkin' Donuts test-marketed their new products in select locations or Broadway shows have trial runs in smaller cities, adopt this period of obscurity to perfect your craft and build your confidence. Remember, once you climb the ladder of success, taking risks becomes harder and change, more challenging.

In today's competitive business landscape, companies are vying for customers' attention. Yet, the smartest businesses are those that focus on building an audience. An audience, unlike customers or fans, willingly return to hear what you have to say. Over the years, Basecamp has built an audience of over a hundred thousand daily readers for their blog, Signal vs. Noise. When you build an audience, you don't have to buy people's attention, they give it to you. 

Instead of trying to outspend or outsell your competitors, consider out-teaching them. Provide valuable insights and knowledge related to your industry, much like how Hoefler Type Foundry teaches designers about type at Typography.com, or Gary Vaynerchuk teaches about wine on Wine Library TV. This forms a bond with your audience that traditional marketing tactics can't achieve.

Consider sharing the secrets of your business, like famous chefs do with their recipes. This not only makes your business more relatable but also helps people understand your operations better. It's time to let go of the fear of competitors learning your strategies. Embrace the beauty of imperfection, much like the Japanese principle of wabi-sabi. 

Instead of relying on press releases or pitching to big-time publications, focus on smaller niche bloggers or trade publications. Stories that start on the fringe can go mainstream quickly. Remember, marketing isn't a department; it's something everyone in your company does. 

Finally, dismiss the myth of the overnight sensation. Success is a slow and steady journey. Be patient, grind it out, and eventually, the right people will notice. So start building your audience today and keep at it. In a few years, you too will get to chuckle when people discuss your "overnight" success.

Can Embracing Obscurity and Sharing Business Secrets Be the Key to Overnight Success?

Imagine you're the captain of a ship. You wouldn't hire a crew before understanding the mechanics of the vessel, right? 

At 37signals, they didn't hire a system administrator until one of them had spent a summer setting up servers. They knew the job inside out before they handed it off. The first step? Do the job yourself. Understand the nature of the work. This empowers you to hire wisely and manage effectively. 

Hire when it hurts. Don't hire for pleasure; hire to kill pain. Is that extra work really necessary? Can we solve the problem with a change of practice or software? If you lose someone, don't rush to replace them. You'll often find you don't need as many people as you think. The right time to hire is when there's more work than you can handle for a sustained period. 

Avoid the temptation of hiring great people just for the sake of it. You might be tempted to invent a position to lure them in. But, an idle talented hand is a breeding ground for artificial work, leading to unnecessary costs and complexity. If you don't need someone, you don't need someone.

Hiring rapidly might result in a "strangers at a cocktail party" scenario, with dull conversations and an avoidance of conflict. You need an environment where everyone feels safe enough to be honest when things get tough. So, hire slowly. 

Resumes can be a joke, filled with exaggerations and unverifiable claims. Instead, check the cover letter. It's a better test that reveals someone's actual voice and their alignment with your company. Remember, you want a specific candidate who cares specifically about your company.

Experience is overrated. What matters is how well they've been doing it. What does five years of experience mean? How do you measure that? Ignore the formal education too. Many intelligent people don't excel in the classroom. 

With a small team, you need people who are going to do work, not delegate work. Avoid hiring delegators. Hire managers of one instead. They set their own direction and surprise you with how much they've gotten done. 

Hire great writers. Clear writing is a sign of clear thinking. Great writers know how to communicate and make things easy to understand. They're a sign of clear thinking. They can put themselves in someone else's shoes. They know what to omit.

The best talents are everywhere. Don't limit yourself to your geographical location. Technology makes it easier to bring everyone together online. You can manage time zone differences with a few hours of real-time overlap. Meet in person once in a while to keep the team connected.

Finally, test-drive employees. Interviews only reveal so much. Hire them for a miniproject to see how they work. This allows you to judge them by their actions instead of just their words. After all, you need to evaluate the work they can do now, not the work they say they did in the past.

Mastering the Art of Hiring: Insider Tips from 37signals

In the face of adversity, owning your narrative is essential. When bad news strikes, be the one to share it, or else rumors and misinformation will spread. 

Being open, honest, and responsive in a crisis is vital, as seen in contrasting responses from Exxon and Ashland Oil after their respective oil spills. Exxon delayed their response and seemed to hide, whereas Ashland’s proactive and honest approach resulted in a more positive public perception.

The message should come from the top, and it should be spread widely. Don’t shy away from a situation or attempt to downplay it. Apologies should be genuine and personal, accepting responsibility and providing details about what happened, how it will be prevented in the future, and how the situation will be rectified.

Speedy customer service can turn a bad situation into a good one. A fast response, even if you don’t have all the answers immediately, shows customers that you care and that you’re listening. Thoughtful responses can differentiate you from competitors who only provide canned answers.

Everyone in your company, from the back-end developers to the front-line customer service agents, should be involved in handling customer feedback. This not only ensures accurate communication but also helps the team to understand the product's strengths and weaknesses better. 

It fosters empathy and motivation, as the team experiences both the frustrations and joys of the customers. Even if you think you don't have time for this, make time. Even Craig Newmark, the founder of Craigslist, still personally answers customer support emails.

When you make changes to your product or service, expect resistance and negative reactions - people are creatures of habit. Resist the urge to panic or make immediate changes in response. Instead, acknowledge the feedback, let things simmer, and give your customers time to adjust. Often, they’ll end up liking the new way more than the old once they get used to it.

Can Honest and Swift Customer Service Turn Crisis into Opportunity?

In the realm of business, culture isn't something you can simply create like a mission statement or rulebook. Real culture, the kind that permeates every part of a company, happens organically over time through consistent behavior. Encourage sharing, reward trust, and treat customers right, and your culture will reflect these values.

Don't waste energy worrying about hypothetical problems. Decisions are temporary and can be changed as circumstances evolve. Being a small company has its benefits - you can make quick, sweeping changes that big companies can't. So focus on the present and tackle future problems when they arise.

Instead of seeking 'rock stars' or 'ninjas', cultivate a work environment that encourages great work. Cut through stifling bureaucracies and trust your employees. Don't treat them like children - they need autonomy to think freely and be productive. And remember, not every moment at work has to be strictly for work; a little diversion can help disrupt the monotony of the workday.

Forget the myth of the 'perfect' employee who works endless hours. What you need are people who can get their work done efficiently because they have a life outside of work. These are the people who will stay with your company for the long haul.

Resist the urge to create policies for every mishap. Policies are often overreactions to rare situations and create unnecessary bureaucracies. Instead, address issues individually and only create policies for recurring problems.

In your communication, be yourself. Forget the stiff, formal language that many businesses use to sound bigger. Being honest and direct communicates respect for your audience. Moreover, write to be read - make your writing conversational and relatable. 

Avoid the four-letter words that can hamper healthy communication: need, must, can't, easy, just, only, and fast. They introduce animosity and make it harder to find solutions. 

Lastly, stop saying ASAP. Not everything is a high priority. Use emergency language sparingly and only for real emergencies. This allows you to prevent artificial stress and maintain a healthier work environment.

Redefining Workplace Culture: A Glimpse into Organic Growth, Autonomy, and Healthy Communication

In the realm of business, it's essential to challenge conventions and thrive despite the odds. Being a small software company, Basecamp believes in a different approach to the traditional business mindset. They reject the notions of pursuing growth, meetings, budgets for the sake of it. 

Instead, they focus on efficiency and clever solutions. They have found that size and growth are not always indicators of success. They also challenge the idea of the "workaholic", believing that working more doesn't necessarily mean getting more done. 

They want to retire the term "entrepreneur" as it creates a sense of exclusivity. They embrace the term "starters" as it encompasses anyone who has an idea and the drive to start something. 

In terms of managing a business, they believe in dismantling business norms and rebuilding them in ways that make sense to them. This involves understanding that anyone can start a business today, you don't have to work insane hours, and that long-term business planning is essentially guessing. 

They avoid outside funding as it often leads to giving up control and distractions from building something great. They encourage the idea of having less mass, meaning avoiding long-term contracts, excess staff, and permanent decisions whenever possible. 

They also believe in embracing constraints that come with limited resources as they force creativity and prevent waste. They believe that great products come from focusing on what's truly essential and cutting back when things aren't working. 

Lastly, they believe in launching products as soon as they fulfill their purpose and making improvements later.

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