Build. Simple. Products.
What We Can Learn from a Lesser-Known yet Highly Successful Entrepreneur
— Author: Vladimir Super-BusinessDad —
I recently discovered Jason Fried and his company, '37signals.' What a refreshing find! If you're a business founder or considering starting one, I encourage you to read on to learn about an unconventional business model.
TL;DR
Jason Fried, a co-founder of 37signals, advocates simplicity in business and work culture.
Instead of trying to outdo competitors, focus on doing less but doing it better.
Stay small, focus on profit, and empower your team to make decisions.
Who is Jason Fried?
Jason Fried is a prominent entrepreneur and the co-founder of 37signals (formerly known as Basecamp), a software development company. Basecamp is known for its project management and team collaboration software, also called Basecamp.
Fried is also an author and speaker known for his unconventional and pragmatic approach to business and work culture. He often advocates for remote work, productivity, and simplicity in both work and life.
Through Basecamp and his writings, Fried has become a well-known figure in the tech industry, particularly in the realm of remote work and entrepreneurship.
Don’t Try to Outwork Competitors. Do Less Instead.
Conventional wisdom often dictates that to surpass your competitors, you must constantly outdo them. If they offer four features, you feel compelled to offer five, fifteen, or even twenty-five. If they invest $20,000, you believe you need to invest $30,000 or more.
However, this mentality of continuous one-upmanship leads to a dead end. Engaging in an arms race results in a never-ending battle that drains your resources—be it money, time, or energy. Moreover, it leaves you constantly on the defensive, unable to think strategically or innovate proactively.
So, what's the alternative?
To beat your competitors, do less. Focus on solving simple problems and leave the complex challenges to them. Instead of constantly trying to outdo them, consider the strategy of 'one-downing' or 'undergoing' rather than 'one-upping' or 'outdoing'."
Just Stop Complicating
Jason Fried is a strong advocate for simplicity in product design and development. He believes in focusing on core features and delivering value without unnecessary complexity. Here are some of his insights on making simple products:
"Make a feature list. Cut it in half. Make the UI simpler. Simplify the pricing plans. Make it one-third the price you originally thought. Charge for it right away. Get more aggressive about cutting it in half. Ship it."
"Make simple software. Add features rarely. Less is more. Less is a good thing. Keep it simple. Write less software. Don't write a line of code until you know exactly what you're building."
"Complexity is a form of laziness. We make things complex because we don't have the time to make them simpler."
"Simple is hard. Easy is harder. Invisible is hardest."
"Simplicity is about subtracting the obvious and adding the meaningful."
"The easiest, most straightforward way to create a great product or service is to make something you want to use. That lets you design what you know - and you'll figure out immediately whether or not what you're making is any good."
Pure gems! 💎💎💎
Stay Small. Focus on Profit.
“There’s nothing wrong with staying small. You can do big things witha a small team.”
37singal has 155 employees. They are working in teams of 2 people: 1 developer, 1 designer.
“A business without a path to profit isn’t a business. It’s a hobby.”
37signals have been profitable since the beginning, for 25 years. They are making dozens of millions of dollars in profit each year.
“When everything constantly needs approval, you create a culture of non-thinkers”
Empower your team to make decisions. Step back and allow your employees to grow and evolve.
“You don’t create a culture. It happens. This is why new companies don’t have a culture. Culture is the by-product of consistent behavior.”
'Culture' is a buzzword these days. Finally, I stumbled upon an explanation that resonated with me.
Here's another unconventional wisdom amidst these hustling times:
“Workaholics aren’t heroes. They don’t save the day, they just use it up. The real hero is home, because she figured out a faster way.”
And one of my favorites:
“Whit great power comes great ignorance.”
I suppose Peter Parker’s uncle might not agree. 😄
Immediate Action: Three Key Steps to Implement Now
To implement Jason Fried's principles into your business strategy:
Cut to the core: Streamline your product or service offerings by cutting away non-essential features and focusing on core functionalities.
Keep it small: Restructure your teams to operate in smaller, more agile units, fostering collaboration and adaptability.
Keep it profitable: Prioritize profitability over expansion, ensuring sustainable growth and longevity for your business.
Final Thoughts
Listening to Jason Fried's insights has truly shifted my perspective. As a product manager, I was fixated on outworking and outperforming the competition.
However, the key takeaway is clear: You can distinguish yourself by doing fewer things, but doing them better.
Refreshing, indeed.
Quote of the week
I would greatly appreciate it if you could share your thoughts on this subject in the comment section. The entire community can benefit from a variety of perspectives, helping us collectively find the best solutions.
If you have friends who might be interested in these topics, please consider spreading the word. The more minds we have engaged in these discussions, the better we can become as both businessmen and fathers.