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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 can offer entrepreneurs, I thought of something my grandfather explained:"If you want to be successful at anything, follow someone who is successful!". In my grandfather's day you had to learn directly from the person or company you were following. In the modern day world 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 laid out by Napoleon Hill. He said: "It is literally true that you are able to succeed best and quickest by helping others succeed." This is the essence of Groupon's success. By helping small enterprises to offer group discounts, Groupon is providing targeted advertising these business owners 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 of the business model is that it can also help the consumer and the economy.

groupon co founder eric lefkofsky

Our economy has seen a vicious volitile manner. Widespread job losses keep individuals from spending money, local businesses fail, more tasks are lost, and less money is spent. Groupon has taken a stride toward defeating this model. By providing 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 owners have long known the power of coupons and group discounts. People 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 length of time is left to purchase the daily deal. The very least number of deals should be sold before "the deal is on", which number is also displayed. Groupon collects from 30% to 50% from the deal price as well as the local business collects the rest. The deal that you buy has an expiration date attached, so don't forget to use your discount!

What Groupon's success methods to entrepreneurs: If you find a means to help people, you too can become successful. Look at other entrepreneurs who've become wildly successful, and you may 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 based entertainment. Groupon gives us the chance to try high end services for around half the price.

The last part of this equation is rarely disappointing your customer. The important 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 are only successful because of your customers or clients, don't let them down!