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Entrepreneurship Lessons From Groupon

What you might Learn from the FASTEST growing company EVER.

When thinking about the lessons Groupon's success will offer entrepreneurs, I thought of something my grandfather explained:"If you want to be successful at anything, follow someone who is successful!". Within my grandfather's day you had to learn directly from the person or company you were following. In the modern day realm of the internet, following inside the footsteps of successful entrepreneurs far less complicated.

groupon co founder eric lefkofsky

Groupon's success is dependant on, knowingly or unknowingly, following principles organized by Napoleon Hill. He said: "It is literally true that you can succeed best and quickest by helping others succeed." Here is the essence of Groupon's success. By helping small businesses to offer group discounts, Groupon is providing targeted advertising these business owners could not readily afford. By sharing the proceeds from the offer, the consumer is really paying both the local business, and Groupon. The best part of the business model is that it can also help the consumer and the economy.

chicago businessman eric lefkofsky

Our economy has seen a vicious unpredictable manner. Widespread job losses keep people from spending money, local businesses fail, more jobs are lost, and less money is spent. Groupon has taken a step toward defeating this model. By providing group discounts, they're encouraging consumer spending, which increases local business revenues, and helps us keep our local jobs.

Groupon is a combination of two words, Group and Coupon. Business people have long known the effectiveness of coupons and group discounts. Individuals who receive discounts often spend more money. If they spend more compared to what they originally planned, they do not mind.

eric lefkofsky groupon co founder

Groupon offers a daily deal with their subscribers. There is a timer about the right, letting you know how much time is left to purchase the daily deal. A minimum number of deals has to be sold before "the deal is on", which number is also displayed. Groupon collects from 30% to 50% from the deal price and the local business collects the remainder. The deal that you buy has an expiration date attached, so make sure you use your discount!

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

The final part of this equation is rarely disappointing your customer. The big mistake many entrepreneurs make is forgetting what made them succeed in the first place. You're only as good as you client satisfaction ratio. Remember you're only successful through your customers or clients, don't let them down!