Shoe Dog by Phil Knight is a memoir that tells how he and his business partner created an iconic footwear brand, Nike.
The book is interesting because it recounts their struggles as they tried to grow the company. We learn about their decisions, which led to success, and those that were not successful.
I’ve put together some lessons from Shoe Dog you can apply to your startup or business.
1. Don’t be afraid to start from nothing
In 1962 Phil Knight was a student at Portland State University. He wanted to move from being a mediocre runner to being an extraordinary athlete. The desire drove him into a crazy idea: selling running shoes at the track meet where he would compete as part of his training.
He talked a friend into investing $500 each in the venture.
They managed to convince a local shoe store owner to sell them 50 pairs of shoes on credit. They then sold all the shoes at the track meet that weekend, making $20 per pair of shoes (or $400 total). Knight ended up with $1000 cash in his pocket after paying back his friend and repaying the shoe store owner.
Knight and his partner looked at their bank account and had a moment of insane genius: “Screw school. Let’s start a shoe company.”
2. Build your brand on something sticky
Nike had its origins in another company named Blue Ribbon Sports (BRS). As BRS grew, they wanted to branch into other sports, but their success was limited because they had no strong brand name.
They started looking for someone who could design the logo and give it that unique look associated with major brands. Knight met with one of the ad agency’s artists to buy an hour’s worth of his time. The artist spent much longer than an hour on the logo design. Knight was amazed at how much the artist had improved the original idea he had come up with and offered him a full-time job after graduating college.
3. It’s not about you
Nike tried to get an endorsement deal with Boston Celtics star Bill Russell for $150,000. However, Russell turned them down because he didn’t think Nike was a good enough brand to be associated with him.
Knight realized he focused on what Russell wanted – endorsement money – not what the company needed – an influential, well-respected endorser.
While Knight was pitching other athletes, his college friend and original business partner Bill Bowerman introduced him to Phil’s future wife, Penny. She had grown up in the same town as Phil and was a runner herself.
While Knight continued to focus on land endorsements, Bill Bowerman designed the shoe that would turn Nike into an iconic brand. You named the company’s first original product after the Greek goddess of victory: Nike.
4. Don’t try to please everyone
Knight decided he wanted to sell Nike shoes at track meets and do business with local stores. However, he had a problem: they didn’t have any product. So Knight and his team did the logical thing and started making shoes in their garages.
During that process, one of the shoe designers would visit nearby university labs to “borrow” a hot plate as their stove. Knight had no idea what they were doing until the first batch of shoes came back burned and full of glue fumes.
5. Even if you’re not an expert, that doesn’t mean everyone else is right, and you’re wrong
Knight partnered with another running coach he knew, Bill Bowerman. Bill was an expert at making running shoes but had no idea running a business or selling products. Knight did have experience selling things but didn’t know anything about designing running shoes.
Knight and his partner were complete opposites in management style, demeanour, looks, and even how they ran their businesses. However, they had complementary strengths that allowed them to succeed in running shoes and to sell them.
6. Look for the opportunity in everything
Nike’s first big-name endorsement deal was with “The Greatest” boxer Muhammad Ali in 1976. Then, Ali insisted on taking his picture in every pair of shoes they sent him to present to his friends.
Nike did not pay Ali for the endorsement because his brand was strong enough to sell shoes on its own. However, that changed over time, and Nike ultimately paid him millions of dollars in royalties based on product sales.
7. Look to your past for inspiration
Knight was determined to make a shoe that would enable runners to run faster and further. His idea was that runners would get extra bounce with each stride if they put springs in the soles.
He took a closer look at his daughters’ rubber boots and noticed how they bent slightly when he pressed on them. That caused him to experiment with different materials, ultimately developing an outsole made of Waffle Trainers. The shoe was revolutionary and became one of Nike’s early hits.
8. Play to your strengths
The first time Knight saw the swoosh “just come together” in its design, he knew he wanted it to be the Nike logo. Because his lack of art training meant he couldn’t draw or sketch, Knight hired a young graphic design student named Carolyn Davidson to draw it for him.
9. Don’t give up on your dreams
Knight initially got turned down for funding because no one believed his company would ever make a profit. One bank even had Phil fill out paperwork claiming he made $7,000 per month (he had no income at the time). After he received his first-ever paycheck from Nike for $5,000, the banks came back and changed their tune.
Conclusion: Phil Knight
These nine lessons from Phil Knight came together to create Nike. Today, the company has over $30 billion in annual revenue and is still led by Knight as chairman.