Lenny's Podcast: Product | Growth | Career

Jason Fried challenges your thinking on fundraising, goals, growth, and more

Dec 17, 2023

Jason Fried, Co-founder and CEO of 37signals, prioritizes profit and explores bootstrapping. They discuss challenges with raising venture capital, the 'Shape Up' framework for building products, fostering a gut-driven culture, and advice for starting a bootstrapped business.

01:49:38

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Episode guests

Jason Fried

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Quick takeaways

Bootstrapping allows entrepreneurs to focus on making money and building a profitable business instead of seeking large investments.

37 Signals prioritizes profitability over seeking outside investment and has achieved significant success and a fulfilling work environment.

Smaller teams and constraints lead to better outcomes by minimizing bureaucracy and encouraging creativity and efficiency.

Trusting intuition and gut feelings in decision-making is valued at 37 Signals, fostering a culture that values thoughtful, intuitive decision-making.

Considering emotions and subjective experiences in design, features, and decision-making leads to a more inclusive and empathetic perspective.

Deep dives

Importance of bootstrapping for entrepreneurs

Bootstrapping allows entrepreneurs to increase their money-making skills and gradually improve their business. It is an alternative to the conventional "go big or go home" mentality of raising large amounts of money. Bootstrapping offers more room for success and building a profitable business by focusing on making money rather than seeking unicorn status.

Advantages of staying in business over selling or starting over

01:23

Embracing Negative Visualization for Business Innovation

01:01

The Downfall of Promises in Business

01:14

Efficiency Over Growth in Business Strategy

01:14

Introduction

5min

An Insight into a Profitable and Customer-centric Business

2min

Bootstrapping vs Venture Capital

27min

Building Products with ShapeUp

11min

Trusting Instincts in Decision-Making

10min

Qualities of a Potential Hire and the Playful Approach to Product Development

5min

Shaping up product development process for traditional companies

12min

Bootstrap Your Business and Stay Small

26min

Recommended Books and Favorite Movie/TV Show

5min

10.

Rediscovering the Joy of Stick Shifts

8min

Jason Fried is the co-founder and CEO of 37signals, the maker of Basecamp and HEY. 37signals is a very different kind of company. With fewer than 80 employees, they have over 100,000 customers, generate tens of millions of dollars in profit each year, and have no investors, board, or any plans to ever raise money or sell the company. In our conversation, we explore a path many tech founders never consider—bootstrapping. We discuss:

• Why he and his team prioritize profit above all else

• The unexpected challenges with raising venture capital

• The “Shape Up” framework for building products

• Why, and how, to foster a gut-driven culture

• Jason’s thoughts on why work should not feel like war

• Advice for starting a bootstrapped business

• The philosophy behind Once, 37signals’s new line of software products

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Find the full transcript at: https://www.lennysnewsletter.com/p/jason-fried-challenges-your-thinking

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Where to find Jason Fried:

• X: https://twitter.com/jasonfried

• LinkedIn: https://www.linkedin.com/in/jason-fried/

• Email: jason@hey.com

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Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• X: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/