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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 told me:"If you want to be successful at anything, follow somebody that is successful!". Within my grandfather's day you had to find out directly from the person or company you were following. In the modern day realm of the internet, following within the footsteps of successful entrepreneurs is much less complicated.

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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." This is 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 of the offer, the consumer is actually paying both the local company, and Groupon. The best part with this business model is that it also helps the consumer and the economy.

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Our economy has seen a vicious volitile manner. Widespread job losses keep people from spending money, local businesses fail, more tasks are lost, and less money is spent. Groupon has taken a step toward defeating this model. By offering group discounts, they're encouraging consumer spending, which increases local company 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 effectiveness of coupons and group discounts. Those who receive discounts often waste more money. If they spend more than they originally planned, they do not mind.

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Groupon offers a daily deal for their subscribers. There is a timer about 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 also 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 means to entrepreneurs: If you find a way to help people, you can also become successful. Look at other entrepreneurs that have become wildly successful, and you will see that they started off by creating value. Google gave us a less strenuous way to find what we're searching for. Cable gave us in home based entertainment. Groupon gives us the opportunity to try high end services for about half the price.

The final part of this equation is rarely disappointing your customer. The large mistake many entrepreneurs make is forgetting what built them into 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!