Shoe Dog by Phil Knight
A Memoir by the Creator of Nike
We’ve all had crazy ideas, haven’t we? Maybe most times we dismiss them, thinking they’re just that—crazy. But what if we actually chased after those crazy ideas, and tried to make them happen?
Phil Knight, the creator of Nike, said in his memoir Shoe Dog that Nike started out just like that: with a crazy idea.
⭐ Rating: 4.4/5
Crazy Idea: Follow a Calling
Knight’s Crazy Idea began at the Stanford Business School as he was writing his thesis on selling Japanese shoes in America (he titled it: “Can Japanese Sports Shoes Do to German Sports Shoes What Japanese Cameras Did to German Cameras?”). He wanted to make a mark in this world and solve a problem (having high-quality but low-cost running shoes). And without knowing how he was going to do it or where it would take him, Knight decided to follow his Crazy Idea. He began partnering with Japanese shoe companies and selling their products in America.
Knight said that following your Crazy Idea is like following a calling. A calling is more than a job, or money, or other people’s approval. A calling requires passion and it motivates you to keep going even when it gets rough. Follow a calling, don’t settle for a job.
Blue Ribbon
Lesson: Take every chance you got
When Knight published his thesis all those years ago, no one really thought much of it, except for Knight himself. He became obsessed with the idea and knew he wanted to chase after it.
Knight visited Japan on his post-graduation trip around the world. It was then that he fell in love with the Tiger brand created by Onitsuka. He thought to himself, “Why not?” He was already in Japan and he’s got nothing to lose, he might as well give his Crazy Idea a shot. And he did.
He called Mr. Onitsuka, the CEO, saying that importing Tiger brand shoes to the United States could get them ahead of Adidas (one of their main competitors at the time). To Knight’s surprise, they accepted his pitch. They gave him the distribution rights to sell Onitsuka Tiger shoes in the wester United States. Knight named the company “Blue Ribbon,” inspired by his childhood room (a wall decorated with blue ribbons from track).
Onitsuka sent him 300 shoes to sell in the U.S., which Knight sold from the trunk of his car. He found a business partner in his college running coach Bill Bowerman (who immediately fell in love with the shoes and offered to take care of product design), and together, they sold shoes at track meets to fans, runners, etc. In just a few months, they completely sold out 300 pairs of shoes and ordered another shipment of 300 shoes. And that was how Nike started...
3 Months Sold
Lesson: Get passionate and sell enthusiasm
Bowerman and Knight sold their first 300 pairs of shoes in just three months.
Knight said that he had failed in sales, especially when he was hired to sell encyclopedias by going door-to-door. But he found that it was easy to sell shoes. Why? Maybe the reason was because of his passion and his drive. Knight loved shoes. He did track and had been obsessed with the idea of selling shoes since college. It wasn’t just his Crazy Idea, he had a passion for shoes.
Knight wrote in his memoir that he thinks it was because he genuinely believed the shoes could make other people’s lives better, that other people believed it too. He wrote, “People, sensing my belief, wanted some of that belief for themselves.”
Bill Bowerman
Lesson: Find a mentor and partner who believes in you and can share valuable skills
Bill Bowerman was not only Knight’s business partner, he actually started out as Knight’s mentor in college and running coach. At the time, Bowerman was also one of the most famous running coaches, training local champions and Olympic track runners.
Bowerman was the first person that Knight sent a couple shoes to, knowing his reputation could gain him popularity if Bowerman gave a good review. But Knight got more than that, he gained a business partner. He and Bowerman split the company 51% to 49%, Knight with operational control of the company. Together, they put money towards Blue Ribbon and nurtured its growth.
A good business partner and co-founder should be able to complement your skills. Managing a business is a lot of work and can be a very heavy burden. Having a good partner will lighten that load. Find someone who shares the same values and goals that you do. They don’t have to have the same Crazy Ideas as you, but they should be able to support and encourage you through the journey.
Expanding Their Business
Lesson: Encourage people to simply be themselves. Let them surprise you on how they do what you want them to do.
Knight learned a key lesson from General Patton when it comes to communicating and working with others: “Don’t tell people how to do things. Tell them what to do and let them surprise you with their results.”
Knight encouraged people to simply be themselves. And for Bowerman, that was being a shoe dog—someone obsessed with shoes, thinking of ways to make them better and better. That passion and skill was crucial in Blue Ribbon’s success.
Bowerman was always testing new materials and designs, anything that could improve the quality of the running shoes. He even often used Knight as a guinea pig to try out the new shoes he designed. Finally, they sent over a shoe prototype called the Cortez over to Onitsuka in Japan, asking if Onitsuka could manufacture the shoe. And that was how they landed their first big commercial hit.
Being a good leader doesn’t mean you need to manage every single person, let alone *micro-*manage a whole team. Trust your team and assign responsibility. Allowing fewer limits for your employees could help them unleash their creativity and get more excited working for you and the goals of the company.
Blue Ribbon to Nike
Lesson: Gain control by making it your own
After several years of importing Tiger Brand shoes from Japan, tensions were beginning to rise between Blue Ribbon and Onitsuka. Knight suspected that Onitsuka was looking to sign with a larger distribution company, which would put Blue Ribbon out of business.
Although Blue Ribbon was doing very well and earning a lot of sales, Knight was constantly worried about Onitsuka signing with someone else. So in 1971, Knight decided to create his own brand of shoes. This would give him full control over the products they design, as well as the future of their company because they didn’t have to rely on a supplier like Onitsuka.
Nike or Dimension Six?
Lesson: The name won’t matter as much as the quality and reputation of your brand
Again, just like when Knight decided on the name “Blue Ribbon,” when it came time to decide on a new name, Knight and his team were stumped. Top candidates included calling the company “Falcon” or “Dimension Six” (which was Knight’s favorite). But eventually, they decided on “Nike” after the Greek goddess of victory. And though Knight and his team were not extremely pleased with the name, they were running out of time and needed to make a decision. They thought: “maybe it will grow on us.”
And maybe it did, because the company is still called Nike today. But what’s important to note here is that both times Knight needed to choose a name for his company, he was unprepared. And though the name of your company is important (how does it sound? is it catchy? easy to pronounce?), it’s not as important as the quality and reputation of your brand. Blue Ribbon or Nike didn’t become successful because of its name. Nike with any other name would still be the same company that puts out great designs, quality running shoes, athlete endorsements, etc.
Key Takeaways
Resist conformity. Sometimes chasing after Crazy Ideas will take you down paths that seem outside of cultural and societal norm.
Don’t settle for a job. Find your passion and follow a calling.
Find a good business partner who complements your skills and agrees with your values.
Get passionate. It’s easy to sell something you believe in. Others will see your belief, and begin to have that belief for themselves as well.
Life is about growth. Think about how you can make your company and brand bigger and better with each season.
Notable Quotes
“Life is growth. You grow or you die.”
“How can I leave my mark on the world, I thought, unless I get out there first and see it?”
“When you see only problems, you’re not seeing clearly.”
“It’s never just business. It never will be. If it ever does become just business, that will mean that business is very bad.”
“So that morning in 1962 I told myself: Let everyone else call your idea crazy . . . just keep going. Don’t stop. Don’t even think about stopping until you get there, and don’t give much thought to where “there” is. Whatever comes, just don’t stop.”
“History is one long processional of crazy ideas.”
“But that’s the nature of money. Whether you have it or not, whether you want it or not, whether you like it or not, it will try to define your days. Our task as human beings is not to let it.”
