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Entrepreneurship Lessons From Groupon

What YOU Can Learn from the FASTEST growing company EVER.

When with 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 who is successful!". During my grandfather's day you had to understand directly from the person or company you had been following. In the modern day arena of the internet, following within the footsteps of successful entrepreneurs is much less complicated.

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Groupon's success is founded on, knowingly or unknowingly, following principles presented by Napoleon Hill. He was quoted saying: "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 offers targeted advertising these companies could not readily afford. By sharing the proceeds with the offer, the consumer is in fact paying both the local business, and Groupon. The best part with this business model is that it likewise helps the consumer and the economy.

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Our economy has seen a vicious downward spiral. Widespread job losses keep individuals from spending money, local businesses fail, more effort is lost, and less funds are spent. Groupon has taken one step toward defeating this model. By offering group discounts, they are encouraging consumer spending, which increases local business revenues, and helps us keep our local jobs.

Groupon can be a combination of two words, Group and Coupon. Business people have long known the power of coupons and group discounts. Individuals who receive discounts often waste more money. If they spend more than they originally planned, they don't really mind.

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

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

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