Lessons that Last

This business cycle has revealed that overnight crypto billions cannot be conjured out of the Bahamian surf.

Like WeWork, Theranos, and Fyre Festival, time and attention eventually reveal firms that are fueled exclusively by hype. They cut corners while racing to inflate their market caps, and have zero execution (or profits) to back it up.

Looking backwards, these revelations always feel obvious, yet more charlatans will rise in the years to come.

If we want to succeed in the future, we must leverage history to filter actionable business lessons on our behalf.

Patagonia Inc. will celebrate its 50th anniversary this May. Its founder, Yvon Chouinard, has stewarded his business through many cycles and emerged stronger than before. Two of his principles for business building have a timeless quality;

1. Pursue the Highest Quality Product

Before selling durable, premium outdoor apparel, Yvon founded Chouinard Equipment. His firm made hardened steel pitons for climbers in Yosemite Valley. Despite being more than 20x the price of disposable alternatives, his goods sold quickly and consistently due to their excellent performance.

That formative entrepreneurial experience stuck with Chouinard forever.

2. Develop Your Team and Let Them Decide

Chouinard would leave the company for extended sabbaticals to pursue his own outdoor adventures. As he trekked to remote environments, his team was left without the option to contact their leader.

This necessitated a decentralized decision-making system and a high degree of personal responsibility.

When you have great products being sold by a business full of great people, your results will feel inevitable.

*Chouinard has many more lessons in his book Let My People Go Surfing.

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