In Shoe Dog, Phil Knight, the creator/founder of NIKE, quotes the maxim, "When goods don't pass international borders, soldiers will." He adds, "Trade is the path of coexistence, cooperation. Peace feeds on prosperity."
Knight's book encourages those who would work for world peace and their own happiness. He frankly presents the ways he handled and mishandled the challenges every international entrepreneur faces and tells them they have a big bull's eye on their backs. He observes trolls everywhere trying to block, thwart, and say no to the entrepreneurial spirit. Elsewhere, I've read entrepreneurs can best avoid discouragement by telling no one, when they first decide to start a business.
Knight's business began modestly. He sold shoes out of the trunk of his car at sporting events and opened his first office next to a pulsating bar.
He embraced a management style of telling people what to do (not how to do things) and letting them surprise him with the results. What did one of his early employees do? He set up a data base keeping information about his retail customers, not only what they bought but also their birthdays so he could send cards. And he furnished a store with comfortable chairs bought at yard sales, shelved books about running along with shoes, hung posters of runners, and gave his best customers T-shirts with the company logo on them.
Knight outlines sources of funding: family and friends; local, regional, national, and international banks; venture capitalists; trading companies; public A and B stock offerings. Each funding option has pluses and minuses. Trading companies, for example, lend money with the aim of buying out/taking over the business unless, at the offset, a business stipulates its unwillingness to sell.
Besides the never-ending need to find funding, Knight ran into other problems. Steve Prefontaine, the famous distance runner who was NIKE's first celebrity endorser, died in an automobile accident. Packing too many innovations into a new shoe led to a recall. Despite a contract, the first overseas manufacturer Knight relied on to provide the shoes he sold decided to dump him and get a new distributor. NIKE would have better luck when it was first to find a shoe supplier in China. In the US, competitors tried to put NIKE out of business by using an American Selling Price customs provision. After making a high priced shoe similar to NIKE's, US manufacturers asked the government to impose a $25 million duty on NIKE imports that totaled 20% of their American selling prices. Even after negotiations, NIKE paid a custom's duty of $9 million.
Setbacks can turn into learning experiences and worldwide benefits. After the media blasted conditions in its overseas factories, NIKE responded by becoming a leader in the factory reform movement. To eliminate the toxic process of bonding shoe uppers to soles in a rubber room, NIKE invented a fume-less water-based bonding agent that the company shared with its competitors.
And, finally, Shoe Dog teaches the cure for burnout is more work, and the Japanese word, kensho, means the aha experience of enlightenment, when you suddenly understand.
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