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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 explained:"If you want to be successful at anything, follow somebody who is successful!". During my grandfather's day you had to find out 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.

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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 it is possible to succeed best and quickest by helping others succeed." This is actually the essence of Groupon's success. By helping small businesses to offer group discounts, Groupon is providing targeted advertising these companies could not readily afford. By sharing the proceeds of the offer, the consumer is in fact 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.

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

Groupon is a combination of two words, Group and Coupon. Business people have long known the strength of coupons and group discounts. People who receive discounts often spend more money. If they spend more than they originally planned, they do not mind.

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Groupon offers a daily deal to their subscribers. There is a timer around the right, letting you know how much time is left to purchase the daily deal. The very least 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 and also the local business collects the remainder. The deal that you buy posseses 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 can also become successful. Look at other entrepreneurs who have become wildly successful, and you'll see that they started out by creating value. Google gave us a less strenuous way to find what we're searching for. Cable gave us in home entertainment. Groupon gives us the chance to try high end services for approximately half the price.

The last part of this equation isn't disappointing your customer. The big mistake many entrepreneurs make is forgetting what built them into succeed in the first place. You are only as good as you customer happiness ratio. Remember you might be only successful through your customers or clients, don't let them down!