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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 that is successful!". During my grandfather's day you had to find out directly from the person or company you're following. In the modern day arena of the internet, following in the footsteps of successful entrepreneurs is much less complicated.

groupon ceo eric lefkofsky

Groupon's success is founded on, knowingly or unknowingly, following principles organized by Napoleon Hill. He was quoted saying: "It is literally true that it is possible to succeed best and quickest by helping others succeed." This is the essence of Groupon's success. By helping smaller businesses to offer group discounts, Groupon is providing targeted advertising these business owners could not readily afford. By sharing the proceeds from the offer, the consumer is actually paying both the local business, and Groupon. The best part with this business model is that it can also help the consumer and the economy.

groupon ceo eric lefkofsky

Our economy has witnessed a vicious downward spiral. Widespread job losses keep people from spending money, local businesses fail, more jobs are lost, and less funds are spent. Groupon has taken one step toward defeating this model. By providing group discounts, they may be encouraging consumer spending, which increases local company 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. People who receive discounts often spend more money. If they spend more compared to they originally planned, they do not mind.

eric lefkofsky

Groupon offers a daily deal for their subscribers. There is a timer around the right, letting you know the length of time is left to purchase the daily deal. A minimum number of deals has to be sold before "the deal is on", which number is also displayed. Groupon collects from 30% to 50% of the deal price as well as 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 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 looking for. Cable gave us in home entertainment. Groupon gives us the ability to try high end services for around half the price.

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