How I Built This

Entrepreneurs aren’t born, they’re made – one decision, one risk, and one leap of faith at a time.

1. Opportunities Can Reshape Your Life

Great ideas can change everything, but only if you’re ready to take a bold leap and act on them. Entrepreneurs often spot opportunities that require them to leave behind comfort and stability, trusting their instincts even when the risks seem high.

One example is Jim Koch, who gave up a high-paying corporate job to pursue his vision of European-style craft beer in the US. Despite his family’s concerns, he dived headfirst into the unknown and built what became the Boston Beer Company, generating $1.3 billion in annual revenue by 2019. Another is José Andrés, the chef who believes that ideas can strike while you’re actively searching, as he did while developing his successful restaurant ventures.

However, pursuing a dream doesn't mean forsaking all safety nets. Daymond John, founder of FUBU, waited tables at Red Lobster while building his clothing line. This backup income helped sustain him until FUBU secured a multimillion-dollar investment in 1995, letting him make his business a full-time focus.

Examples

• Jim Koch leaving his corporate job to launch Boston Beer Company.
• Daymond John balancing work at Red Lobster while building FUBU.
• José Andrés finding inspiration through proactive exploration.

2. Your Support Network Matters

Success doesn’t happen in isolation; building a reliable support system is essential. This includes close family, friends, and cofounders who believe in your vision and are willing to contribute their time, skills, or money.

Take Jen Rubio, who co-created Away luggage with Steph Korey. Jen’s marketing skill and Steph’s production expertise allowed them to raise $2.5 million before launching their first suitcase. Entrepreneurs like Eric Ryan and Adam Lowry of Method Cleaning Products also demonstrate the importance of a solid partnership. Despite hard times and financial strain, their shared commitment led to a highly successful cleaning brand.

Sometimes, that support may come in unconventional forms. Daymond John’s mother not only encouraged him, but funded a critical New York Times ad that caught investors' attention, kickstarting FUBU's growth.

Examples

• Jen Rubio and Steph Korey’s complementary skills paved the way for Away.
• Eric Ryan and Adam Lowry’s partnership allowed Method to thrive.
• Daymond John’s mother’s financial and emotional support propelled FUBU forward.

3. Creativity Is Your Biggest Advantage

Brand positioning doesn't just happen; it requires ingenuity, especially when you’re competing with bigger players. Entrepreneurs must find unconventional ways to get their products noticed.

Manoj Bharghava, the creator of 5-hour Energy, avoided competing directly with established energy drink brands. Instead, he introduced a smaller, two-ounce shot that stood out and could be sold on countertops rather than exclusively in refrigerated sections. Steph Korey and Jen Rubio of Away used PR early on, getting featured in Vogue before launching their first product. Finally, Mark Zuckerberg of Facebook emphasized word-of-mouth marketing, knowing it carries more weight than advertisements.

Examples

• Manoj Bharghava’s repositioning of 5-hour Energy as a countertop product.
• Away’s PR strategy generating buzz ahead of their product launch.
• Facebook leveraging friend recommendations to grow its user base.

4. Perseverance Through the “Trough of Sorrow”

Entrepreneurship brings countless challenges, and many give up during the toughest moments. Paul Graham from Y Combinator calls this phase the “trough of sorrow,” where uncertainty and setbacks test an entrepreneur's endurance.

Take Stacy Madison, who shifted her successful sandwich-cart business to baking pita chips when customers showed interest. The switch led to Stacy’s Pita Chips becoming a $65-million-a-year brand. Even if VCs don’t invest, that doesn’t signify failure; some of the most successful ventures grow organically by prioritizing customers and the product.

Examples

• Stacy Madison pivoted to pita chips when demand revealed a clear opportunity.
• Paul Graham’s “trough of sorrow” illustrates the difficult early phases of a startup.
• Founders can often succeed without early VC funding by staying persistent.

5. Humility Defends Against Crisis

No company is immune to disasters, and how leaders respond can determine survival. Entrepreneurs must drop their egos and prioritize trust when solving such problems.

Johnson & Johnson took an unprecedented step in 1982, recalling over 31 million Tylenol bottles after a tampering crisis. Though it cost $100 million, their transparency rebuilt trust, restoring their market share within a year. Leaders like Eric Ryan and Adam Lowry also navigated interpersonal struggles by focusing on their shared larger purpose.

Examples

• Johnson & Johnson's $100-million Tylenol recall preserved customer trust.
• Partnership tensions at Method Cleaning Products resolved through mutual understanding.
• Humble crisis management often leads to long-term resilience.

6. A Clear Mission Simplifies Decisions

Founders succeed more easily when they have a mission beyond making money. A clear purpose not only attracts customers but motivates the team to push through tough times.

Jenn Hyman of Rent the Runway had to fend off dismissive attitudes from male investors who trivialized her vision. However, her focus on giving women access to designer fashion remained her driving force. Her persistence paid off when Rent the Runway hit a $1 billion valuation in 2019.

Examples

• Jenn Hyman’s mission for Rent the Runway shielded her from negativity.
• Mission-based teams often stay loyal and motivated during rough patches.
• Purpose-driven businesses attract customers seeking authenticity.

7. Partnerships Are Like Marriages

Co-founder relationships can feel as intense as a marriage. Shared goals, mutual respect, and trust are critical for weathering crises or disagreements.

Eric Ryan and Adam Lowry of Method found this out the hard way, enduring years of tension after a failed product launch. However, their shared commitment to the brand's eco-friendly vision eventually mended their partnership.

Examples

• Eric Ryan and Adam Lowry described their cofounder partnership as a marriage.
• Successful founders often develop a strong, trust-based cofounder bond.
• Product failures can strengthen partnerships if approached constructively.

8. Smart Branding Starts Small

Entrepreneurs often make the mistake of pouring money into broad marketing strategies that don’t provide returns. Early success requires focusing on precise, impactful efforts.

Away's first PR campaigns targeted high-fashion magazines, meaning their brand became associated with luxury and style right from the start. Similarly, Manoj Bharghava didn't try to fight energy drink giants head-on but instead turned his focus to creating a new product niche.

Examples

• Away’s PR focus on luxury outlets like Vogue.
• 5-hour Energy creating a fresh category commercially.
• Good branding often begins with tailored, impactful efforts.

9. Success Brings Unique Challenges

Reaching success doesn’t mean the challenges are over. The next step is about sustaining momentum, staying true to values, and creating a legacy.

Jenn Hyman’s experience with Rent the Runway highlights the importance of staying grounded in the company’s mission. Without this anchor, achieving long-term growth would have been much harder. Validating your core values becomes essential when new opportunities arise.

Examples

• Rent the Runway staying focused on broadening its market organically.
• Many entrepreneurs lose focus post-success without a clear mission.
• Longevity depends on building systems tied to your original purpose.

Takeaways

1. Build a support network of cofounders, family, and friends who can challenge and uplift you.
2. Test and clarify your mission early. It will act as your compass during success and hardships.
3. Approach challenges creatively by finding gaps or niches in the market to redefine success.