Own a business to help people, not just make money
Anything You Want is a book by Derek Sivers, the founder of CD Baby. Derek shares how he created a muli-million dollar company (supposedly he sold it for $22 million) as well as his philosophy around why you should start a business and how he ran a company. It sounds like he’s a pretty unique individual and some of his ideas are pretty thought provoking.
Derek insists you should focus your business on what adds value to the customer. When he started CD Baby, he was really just looking for a way to sell his music without a distributor. He ended up creating a website and setting up a merchant Visa account. (This was in 1997, pre Paypal and pre lots of web tools.) A friend asked him if he could sell his CD too. Before he knew it, he had a warehouse of CDs from independent musicians and an online business. His goal wasn’t to make money selling their CDs (although he did) — his goal was to enable musicians to reach an audience.
When thinking about your “business plan”, he recommended pushing yourself. Ask what you’d do if you only had $1,000. If you wanted ten times as many customers. If all your first assumptions were wrong. If you had to do it without a website. If you wanted to franchise it. He recommends examining your life that way too. Plan your life for the next couple of years. Then think, “Now you’re living in New York City, obsessed with success. Go!” Or “Now you’re a free spirit, backpacking around Thailand, Go!” And keep imagining …
He also has some really unique views on running a company. It’s hard to tell if his tactics worked really well or if he’s just not telling us about the daily trials; he very successfully ran a very large distribution business and he doesn’t talk much about the logistics. His uniqueness comes through in things like hiring friends of current employees without an interview process and putting the friend in charge of making sure they are trained and successful. He also worked hard to empower people. When he made a decision, he made sure to explain why so that someone else could make the decision next time. It’s also worth pointing out that he didn’t seem very interested in running a business and was very hands off. His idea of success was a business that ran itself (which seems like a great business goal!) and eventually he realized he wasn’t very interested in running it at all. He put the company in a charitable remainder trust and sold it. Now he lives off the trust and the remainder will go to music education when he dies.
The book Anything You Want is a really short read if you want to give it a try. It took me about an hour on the airplane to read and I enjoyed it.