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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 someone who is successful!". Within my grandfather's day you had to find out directly from the person or company you had been following. In the modern day world of the internet, following in the footsteps of successful entrepreneurs far less complicated.

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Groupon's success is based on, knowingly or unknowingly, following principles organized by Napoleon Hill. He explained: "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 businesses to offer group discounts, Groupon is providing targeted advertising these business people 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 this business model is that it likewise helps the consumer and the economy.

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Our economy has witnessed a vicious downward spiral. Widespread job losses keep people from spending money, local businesses fail, more effort is lost, and less cash is spent. Groupon has taken a step toward defeating this model. By offering 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 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 absolute minimum number of deals must be sold before "the deal is on", and also this number is also displayed. Groupon collects from 30% to 50% from the deal price and the local business collects the remaining. The deal that you buy comes with an expiration date attached, so don't forget to 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 may see that they started off by creating value. Google gave us a less strenuous way to find what we're looking for. Cable gave us in home based entertainment. Groupon gives us the ability to try high end services for around half the price.

The final part of this equation is rarely 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 client satisfaction ratio. Remember you might be only successful through your customers or clients, don't let them down!