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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 informed me:"If you want to be successful at anything, follow someone who is successful!". In my grandfather's day you had to find out 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 far less complicated.

eric lefkofsky groupon co founder

Groupon's success is based on, knowingly or unknowingly, following principles organized by Napoleon Hill. He said: "It is literally true that it is possible to 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 provides targeted advertising these business people 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 of this business model is that it also helps the consumer and the economy.

chicago entrepreneur eric lefkofsky

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

chicago businessman eric lefkofsky

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

What Groupon's success means to entrepreneurs: If you find a method to help people, you can also become successful. Look at other entrepreneurs that have become wildly successful, and you may see that they started out by creating value. Google gave us a simpler way to find what we're searching for. Cable gave us in home entertainment. Groupon gives us the chance to try high end services for about half the price.

The last part of this equation is rarely disappointing your customer. The important mistake many entrepreneurs make is forgetting what caused them to be succeed in the first place. You are only as good as you customer satisfaction ratio. Remember you are only successful from your customers or clients, don't let them down!