I recently finished the business biography/personal memoir Shoe Dog by Nike founder Phil Knight. The most interesting aspect of the book is its detailed examination of the struggles indicative of so many American businesses. Many people see successful companies--and Knight's personal net worth that approaches $30 billion--and assume that good luck and exploitative capitalism simply continues to create a greater divide between the haves and have nots. But most people don't know the whole story, and Shoe Dog gives us a glimpse inside the humanity and hard work behind one of the world's most famous brand names.
Knight describes the initial idea behind his company, long before the word "Nike" was ever conceived, of importing running shoes from Japan that he would sell to American athletes. He wanted to bring to American runners better shoes at a better price, and conquer the Adidas stranglehold on the market in the process. But for years, his fledgling operation looked nothing like an economic juggernaut in the making. He sold his sneakers out of the trunk of his car on nights and weekends at area track meets, after working other jobs during the day (usually as an accountant, the profession for which he went to school) in case his shoe sales flatlined.
When he could eventually satisfy a growing group of buyers, he was able to bring on a motley crew of hired hands. But money remained so tight that Knight didn’t make a salary for the first seven years of his company. (What many outside the business world don't realize is that this is actually quite common. The owner of a new small business is often the last to get paid. Taking on the initial risk is what allows them to make more later on.) Knight and his partners constantly adapted to needs of consumers, envisioning and then crafting new styles of running shoes. After many years in the development process, he and his team were finally able to start manufacturing their own shoes and solidifying their own brand. But there continued to be obstacles.
Knight faced lawsuits. He faced government overreach and unfair international trade policies. He faced the constantly fickle nature of athletes and their equipment demands. Knight even briefly describes some of the controversy surrounding Nike in recent years regarding foreign labor practices. Knight deftly explains how certain countries actually forbid higher salaries, even when Knight tried to pay workers better wages. (We must also remember that in many countries, making a minimal salary in a shoe factory is actually a better alternative than what is often available. For many workers in poorer countries, making two dollars an hour sewing sneakers is a vast improvement compared to making two dollars a day doing backbreaking labor harvesting crops. Wealthy Westerners often believe everyone around the world deserves the same types of opportunities they have. But people always choose their best available option in their specific time and place.)
Knight's success is a model that everyone can follow. Though no one is guaranteed his level of wealth, there is almost no other way to achieve it. Long hours, tireless effort, personal sacrifice, and market intelligence--that's the formula. Being an entrepreneur, bringing new ideas and products to rest of the world, is one of the bravest endeavors anyone can undertake. And we need more Phil Knights. Unfortunately, it's getting harder than ever. When considering the future of new businesses in America, Knight says, “I’d like to remind them [young entrepreneurs] that America isn’t the entrepreneurial Shangri-La people think. Free enterprise always irritates the kinds of trolls who live to block, to thwart, to say no, sorry, no. And it’s always been this way. Entrepreneurs have always been outgunned, outnumbered. They’ve always fought uphill, and the hill has never been steeper. America is becoming less entrepreneurial, not more. A Harvard Business School study recently ranked all the countries of the world in terms of their entrepreneurial spirit. America ranked behind Peru.” Land of opportunity, not so much anymore.
The book is about 50 pages longer than it needs to be--Knight goes a bit too far with some of his discussions of his family and travel and sometimes drifts away from the more interesting business exploits--so some skimming would be fine. But it's a quick read overall, and whether you are considering an entrepreneurial future or simply enjoy American success stories, Shoe Dog may be for you. And whenever you hear someone giving businessmen a bad wrap or getting on a soapbox against rich one-percenters, remember that many of them have simply worked harder and smarter than the rest of us in order to bring us things we like. Nike is now one of the most prominent companies in world history, but it all started with one man and one idea and the trunk of his car. Phil Knight built that, and my feet and I are glad he did.
Knight describes the initial idea behind his company, long before the word "Nike" was ever conceived, of importing running shoes from Japan that he would sell to American athletes. He wanted to bring to American runners better shoes at a better price, and conquer the Adidas stranglehold on the market in the process. But for years, his fledgling operation looked nothing like an economic juggernaut in the making. He sold his sneakers out of the trunk of his car on nights and weekends at area track meets, after working other jobs during the day (usually as an accountant, the profession for which he went to school) in case his shoe sales flatlined.
When he could eventually satisfy a growing group of buyers, he was able to bring on a motley crew of hired hands. But money remained so tight that Knight didn’t make a salary for the first seven years of his company. (What many outside the business world don't realize is that this is actually quite common. The owner of a new small business is often the last to get paid. Taking on the initial risk is what allows them to make more later on.) Knight and his partners constantly adapted to needs of consumers, envisioning and then crafting new styles of running shoes. After many years in the development process, he and his team were finally able to start manufacturing their own shoes and solidifying their own brand. But there continued to be obstacles.
Knight faced lawsuits. He faced government overreach and unfair international trade policies. He faced the constantly fickle nature of athletes and their equipment demands. Knight even briefly describes some of the controversy surrounding Nike in recent years regarding foreign labor practices. Knight deftly explains how certain countries actually forbid higher salaries, even when Knight tried to pay workers better wages. (We must also remember that in many countries, making a minimal salary in a shoe factory is actually a better alternative than what is often available. For many workers in poorer countries, making two dollars an hour sewing sneakers is a vast improvement compared to making two dollars a day doing backbreaking labor harvesting crops. Wealthy Westerners often believe everyone around the world deserves the same types of opportunities they have. But people always choose their best available option in their specific time and place.)
Knight's success is a model that everyone can follow. Though no one is guaranteed his level of wealth, there is almost no other way to achieve it. Long hours, tireless effort, personal sacrifice, and market intelligence--that's the formula. Being an entrepreneur, bringing new ideas and products to rest of the world, is one of the bravest endeavors anyone can undertake. And we need more Phil Knights. Unfortunately, it's getting harder than ever. When considering the future of new businesses in America, Knight says, “I’d like to remind them [young entrepreneurs] that America isn’t the entrepreneurial Shangri-La people think. Free enterprise always irritates the kinds of trolls who live to block, to thwart, to say no, sorry, no. And it’s always been this way. Entrepreneurs have always been outgunned, outnumbered. They’ve always fought uphill, and the hill has never been steeper. America is becoming less entrepreneurial, not more. A Harvard Business School study recently ranked all the countries of the world in terms of their entrepreneurial spirit. America ranked behind Peru.” Land of opportunity, not so much anymore.
The book is about 50 pages longer than it needs to be--Knight goes a bit too far with some of his discussions of his family and travel and sometimes drifts away from the more interesting business exploits--so some skimming would be fine. But it's a quick read overall, and whether you are considering an entrepreneurial future or simply enjoy American success stories, Shoe Dog may be for you. And whenever you hear someone giving businessmen a bad wrap or getting on a soapbox against rich one-percenters, remember that many of them have simply worked harder and smarter than the rest of us in order to bring us things we like. Nike is now one of the most prominent companies in world history, but it all started with one man and one idea and the trunk of his car. Phil Knight built that, and my feet and I are glad he did.