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Entrepreneurship Lessons From Groupon

What you could Learn from the FASTEST growing company EVER.

When thinking about the lessons Groupon's success can offer entrepreneurs, I thought of something my grandfather told me:"If you want to be successful at anything, follow somebody that is successful!". In my grandfather's day you had to understand directly from the person or company you had been following. In the modern day realm of the internet, following inside the footsteps of successful entrepreneurs is much less complicated.

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Groupon's success is dependant on, knowingly or unknowingly, following principles laid out by Napoleon Hill. He was quoted saying: "It is literally true that you can succeed best and quickest by helping others succeed." This is actually the essence of Groupon's success. By helping small businesses to offer group discounts, Groupon provides targeted advertising these companies could not readily afford. By sharing the proceeds with the offer, the consumer is actually paying both the local company, and Groupon. The best part with this business model is that it likewise helps the consumer and the economy.

chicago entrepreneur eric lefkofsky

Our economy has witnessed a vicious volitile manner. Widespread job losses keep people from spending money, local businesses fail, more jobs are lost, and less cash is spent. Groupon has taken a step toward defeating this model. By offering group discounts, they may be encouraging consumer spending, which increases someone's place of business revenues, and helps us keep our local jobs.

Groupon is really a combination of two words, Group and Coupon. Business people have long known the strength of coupons and group discounts. Individuals who receive discounts often waste your money. If they spend more than they originally planned, they do not mind.

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Groupon offers a daily deal to their subscribers. There is a timer on the right, letting you know the length of time is left to purchase the daily deal. The absolute minimum number of deals must be sold before "the deal is on", which number is also displayed. Groupon collects from 30% to 50% with the deal price and the local business collects the remaining. The deal that you buy posseses an expiration date attached, so don't forget to use your discount!

What Groupon's success methods to entrepreneurs: If you find a method to help people, you can also become successful. Look at other entrepreneurs who have become wildly successful, and you'll see that they started out by creating value. Google gave us a less strenuous way to find what we're trying to find. Cable gave us in home based entertainment. Groupon gives us the opportunity to try high end services for around half the price.

The final part of this equation is never disappointing your customer. The big mistake many entrepreneurs make is forgetting what built them into succeed in the first place. You are only as good as you client satisfaction ratio. Remember you might be only successful because of your customers or clients, don't let them down!