Shoe Dog

Key takeaways

• Big companies often begin as a crazy idea that nobody else takes seriously
• Growth without cash is dangerous; Nike nearly died from success several times
• Depending on one supplier or partner leaves your whole business at their mercy
• Hire people who care deeply about the mission, even if they seem odd on paper
• Keep going when the sensible thing would be to quit; persistence is the real edge

Inside this bit

1. A crazy idea about shoes

   In 1962, a young accountant from Oregon takes a trip around the world with a strange plan. He wants to import cheap, well-made Japanese running shoes and sell them in America.

2. Selling from the boot of a car

   Knight's first business, Blue Ribbon Sports, was a distributor for a Japanese brand. He sold shoes from the back of his car at track meets, and they sold because runners could see he was one of them.

3. Growing broke

   Here is the paradox that nearly killed Nike again and again: the company was growing fast, and that growth kept pushing it toward bankruptcy. Every year Knight ordered more shoes than the year before, paid for them up front, and waited months for them to arrive and sell.

4. Never depend on one supplier

   For years, Knight's entire business rested on one relationship: the Japanese manufacturer whose shoes he distributed. When that company began to suspect he would eventually compete with them, they started looking for other American distributors, and Knight realised he could be cut off at any moment.

5. The misfits who built Nike

   Knight's early team would not pass a modern hiring filter. One was a former runner paralysed in a boating accident who ran the mail-order business from his wheelchair.

6. Put it to work

   This week, take your own crazy idea and write down what a first small step would look like, something that costs little and puts you in front of real customers, the way Knight sold from his car. Look at your finances or your team's budget and separate cash from revenue; if a late payment or delayed delivery would sink you, start building a buffer now.