Rework

Daoud Kakish includes Rework by Jason Fried  as one of the 10 books that had the biggest impact on his business.  In this book, Fried shares his process for a better, faster, and easier way to succeed in business.  As the co-founder of Basecamp - a project management/ collaboration tool – Fried brings a different approach and a breath of fresh air to the typical business book.  Unlike many writers who focus on helping grow the next multi-million dollar company, Rework focuses on building a great business, regardless of size. 

Here are the big insights we want to share from this book.  And we suspect that at least one of these will be new to you. 

Why Grow?

You’re either growing or your business is dying right?  Not necessarily.  You don’t have to grow at all costs.  Publicly traded companies need to demonstrate growth to make shareholders happy, but if you’re a private small or midsized business you don’t have an “obligation” to grow.  One of the examples Fried shared is Harvard University who isn’t trying to open a new campus in every country in the world.  If they did, it would take away from the magic that makes them who they are and adds to their prestige. 

One quote from the book states “Anyone who runs a business that’s sustainable and profitable, whether it’s big or small, should be proud.”  Small is not just a steppingstone, it can be a destination in itself.  The size of your business doesn’t matter as much as the health of your business. 

Out Teach Your Competition

Fried recommends that instead of outspending your competition, you should out teach them.  Teaching and educating your audience is something that small businesses don’t often think about.  Most businesses are focused on selling and customer service, but teaching can be a differentiator.  In fact, teaching is something that small businesses can usually do better than big companies – which gives you an opportunity to outmaneuver the bigger players. 

Teach and you’ll form a bond with your customers.  It creates trust and customers remember who helped them solve a problem without asking for anything.  Sharing information that educates and informs helps customers build positive associations with your brand – which is the basis for educational direct response marketing.  

Jason Fried himself is a great example of this.  He published this book, helps other entrepreneurs grow, and we’re sure many of his readers have gone on to discover Basecamp and become customers as a result.  Fried also shares an analogy to drug dealers in his book.  He talks about how they give out a small amount of product for free to demonstrate the quality of their product and that brings back the customers.  While we don’t encourage drug use (obviously), we recognize the value of giving something away of such high value that people return for more. 

Outside Money is Plan Z

One of the big take-aways from this book is that business owners should always look for other options to raise funds before they commit to outside funding.  While it might work for some, there are many business owners who accept funding and who later go on to regret it. 

There is so much emphasis on outside funding in the MENA business community.  More entrepreneurs need to realize that you don’t always need outside funding.  How about raising money from your customers instead?  In his other book, Fried says about Basecamp, “We’re in one of the most competitive industries in the world. In addition to tech giants, the software industry is dominated by startups backed by hundreds of millions of dollars in venture capital. We’ve taken zero. Where does our money come from? Customers. Call us old-fashioned. As a software company, we’re supposed to be playing the hustle game in Silicon Valley, but we don’t have a single employee in the Valley. In fact, our staff of 54 is spread out across about 30 different cities around the world.”

Consider also that most businesses (about 98%) who try for outside funding don’t get it.  So, your chances are small anyhow so why make that your primary focus. 

Send Employees Home at 5pm

Fried talks about how many businesses say, “we’re family” but that is often code for “we want you to work non-stop.”  Businesses can support families and show that by letting their staff spend time with theirs. Plus, the way we treat our family is not the way we treat our co-workers or employees.  There’s a different relationship. Sometimes you need to fire employees, but you’d never fire your daughter from being your daughter. 

Instead of focusing on more hours, successful businesses focus on better hours.  Make the most of your work time so that people can spend their off-work hours doing things they love.  It’s always a good idea to hire people who have a life outside of work and who want to get their job done so they can enjoy it.   

Other Quick Gems from the Book

·        Start a business, not a start-up.  When you start, plan to succeed. 

·        Let your customers outgrow you.  Know your customer and be ok with letting them grow to a point where they no longer need you.

·        Tone is in your fingers.  Fried talks about giving someone like Eric Clapton the worst guitar in the world and giving someone else who doesn’t know how to play a guitar the best guitar in the world.  In this scenario, Eric Clapton will always play better.  His point is that you don’t need fancy or expensive tools to succeed.  Get the work done with what you have.