Jason co-founded 37signals back in 1999. He also co-authored REWORK, the New York Times bestselling book on running a "right-sized" business. Co-founded, co-authored... Can he do anything on his own?
Today our first five customers started using Know Your Company, our newest product. We’re hoping to roll out around five new customers every Monday for the foreseeable future.
I thought this was a great time to talk a bit about how we’re building Know Your Company. Not the tech, specifically, but the approach.
From the start, I wanted to approach the development of Know Your Company as if we were starting a separate company inside 37signals, not just building another product at 37signals.
So I went back to 2003. That’s when we originally built Basecamp. Basecamp was basically a new business inside 37signals. I looked back at how we did it.
We had a small team of four – two designers (me and Ryan), one programmer (David), and one person who could help with a variety of things (Matt). We were building something to scratch our own specific itch.
We didn’t have much tech to lean on. We didn’t have Rails, we didn’t have a centralized billing system, we didn’t have a centralized log-in system, we didn’t have much experience launching a product with a new business model (subscription pricing), we didn’t have a server farm (we just had a shared server slice on another company’s machine), etc.
Basically, a lot was very new to us, and the newness was invigorating. It allowed us to approach problems objectively rather than fitting our problems into solutions we’d already built before. Think of it more as a bespoke suit than something off the rack.
Basecamp was a bespoke suit, but just about everything we’ve done since then has been trying to fit into Basecamp’s clothes in one way or another.
I wanted to get away from that way of thinking with Know Your Company. It’s just too easy to continue to lean on the things you’ve done, the decisions you’ve made, and the infrastructure you’ve already built.
So here’s what we’re doing.
We’re starting with a small team of four. Me and Jonas on design. Trevor on programming. And Dan as the multipurpose jack-of-all-trades. I’m also doing sales/demos, which is something we’ve never really done before.
Further, just like when we launched Basecamp, I did all the customer support for the first year or so. That’s what I’ll be doing with Know Your Company too.
As for billing, we’re not using Queenbee, our centralized billing system that powers Basecamp, Highrise, Backpack, Campfire, and a variety of other things we sell. Instead, we’re building a bespoke billing system from scratch. Just what we need, nothing we don’t.
This way we don’t have to compromise a business model approach because our billing system is only set up to do things one way. If we have a different idea for how we want to bill customers (or accept payments), I don’t want to be hamstrung by old decisions. I want to have the freedom to make new decisions.
Queenbee also has a bunch of admin tools built in so we could comp accounts, change ownership of an account, look up a customer and update their information, etc. We’ve left that all behind with Know Your Company. Know Your Company has its own custom admin built right into the product. This way we can build specific admin tools to onboard new customers, update accounts, generate invoices, and everything else that’s unique to Know Your Company.
Another thing we’re doing differently this time around is sales and setup. Our default position when building new products is to make them self-service, just like Basecamp’s been since day one. No interaction with us is required to sign up. Just click a button, pick a plan, sign up, and you’re off and running.
That model has obviously been very successful for us. No question about that. But let’s learn something new. Let’s get a feel for what the opposite approach is like. What if we were full-service instead of self-service? What if we were very hands-on, rather than completely hands-off?
So that’s what we’re doing with Know Your Company. There’s no self-service sign-up. If you want to use Know Your Company, we have to give you a personal demo first. Want to sign up? We’ll walk you through it step-by-step. We’ll even load up your employees for you so you don’t have to do any work. And we’ll also populate your account with a specific set of questions so you don’t have to think about what to ask your employees if you aren’t sure what to ask.
Isn’t full-service harder, more time consuming? Yes it is. And wow it’s been worth it. I’m getting to have a nice conversation with every customer we have. I’m getting to learn a lot about their companies, their struggles, and their goals. This is very healthy for us. The product is going to be way better for it – especially in the long-term.
The business model is all new, too. Instead of defaulting to our Basecamp-famous monthly subscription fee, we’re treating Know Your Company more as a one-time investment in each employee rather than an ongoing recurring expense. So instead of charging a monthly/annual fee, we’re just charging $100 per employee one-time. Once you’ve paid $100 for an employee, you never have to pay for them again. You can use Know Your Company with them for as long as they work for you.
Now, we’re not entirely free from the past. There are still a few things we’re leaning on because they aren’t hampering our flexibility.
For one, we’re using 37id – our centralized sign-in system. Know Your Company customers can sign in with the same username/password they use for their Basecamp accounts. That’s easier for them than having to sign up with another username/password.
We’re also using Rails, which we didn’t have the luxury to use when we built Basecamp. And we’re leaning on our sophisticated server infrastructure and the things we’ve learned about email, too. But the load we’re putting on the system is barely a pimple so I don’t feel so bad about that.
And of course we have the reputation and trust build up behind 37signals over the last 14 years.
But as far as our development approach goes, this feels the closest to the feeling we had when we were building Basecamp nearly 10 years ago. Lots of new things, lots of new approaches, a feeling that we can build whatever we need rather than fitting new ideas into old decisions.
If you’re interested in becoming a customer, please review the introduction letter I wrote. If it resonates with you, and you fit the profile, drop me an email and I’d love to show you around and maybe even get you started.
The first exception should be the hardest one to make. Once you’ve made one, each additional exception gets exponentially easier. Beware that first exception.
For a long time I’ve felt like the only thing worth working on is the next most important thing. Why spend time working on something that’s less important if there’s something more important that needs work?
I’ve changed my mind on this. I think it’s always good to be working on two things: The next most important thing, and the next most interesting thing.
It’s hard for an interesting thing to compete for your attention if your only criteria for attention is criticality. Interesting things are rarely critical. They’re exploratory. And if you only think in terms of what absolutely needs your attention right now, you’ll never leave room for things that might satisfy your curiosity. That’s important too, just on a different level.
It’s in this spirit that I hope we have the courage to be more experimental at 37signals. Experimental design, experimental tech, experimental business models, experimental strategies, experimental experiments that may lead to brand new insights and outcomes we didn’t know we were capable of before.
Customers don’t just buy a product — they switch from something else. And customers don’t just leave a product — they switch to something else.
The last workshop sold out in just a few days, so if you‘d like to attend, register now.
It’s in these switching moments that the deepest customer insights can be found. On the 21st of June, a select group of 32 people will attend a unique, hands-on, full-day workshop to learn about “The Switch”.
Most businesses don’t know the real reasons why people switch to — or from — their products. We’ll teach you how to find out.
The workshop will be at the 37signals office in Chicago. The cost to attend is $1100. The workshop will be led by 37signals and The Rewired Group.
You’ll participate in live customer interviews.
You’ll learn new techniques for unearthing the deep insights that most companies never bother to dig up.
You’ll understand why people switch from one product to another and how you can increase the odds that the switch goes your way.
And you’ll be able to put everything you learned to immediate use.
There’s only one simple requirement: You’ll be asked to bring something with you. It won’t be a big deal. Details will be provided one week before the workshop.
Spots are limited. Only 32 people will be able to attend and participate. Want to be one of the 32? Register now. We will see you on June 21.
“If you wanna meet with me… come to the garden… with your shovel… so we can plant some shit.” -Ron Finley
We’re working on a entirely new product, and I’m looking to meet some potential customers. We can meet in person, over the phone, or via Skype, etc.
The tool is for the small business owner who runs a company of between 25 and 75 people. You used to be smaller, but now you’re bigger. And you experienced some personal growing pains along the way.
When you were smaller, you used to know everyone a bit better. When you were smaller you used to be in the loop a bit more. When you were smaller you used to have a better feel for what everyone was thinking and feeling. When you were smaller you used to know what everyone liked – and didn’t like – about the direction of the company.
But now you’re bigger. And now you’re struggling to stay on top of it all. Or maybe you didn’t really care that much before because things took care of themselves. But now, you have to pay closer attention since you’re responsible for a lot more people. You care deeply about your team, and your company culture, but sometimes you feel like you don’t know enough to act decisively.
This is my story. And I have a hunch there are a lot of small business owners out there just like me. This tool can help you individually, and together we can all help each other.
We’re using this tool as we’re building it, and in the past few weeks I’ve learned a lot about my own company. We’ve already implemented some of the company-wide changes that bubbled up from what I’ve learned. These insights wouldn’t have materialized without this tool.
We’re only looking for 25 perfect customers right now. I want to get to know every single one personally. And I want to do everything I can to make this product outstanding for those 25 people. I want to help each customer to make incredible progress using this tool. I want it to change their company for the better.
So if you’re a hands-on business owner running a company with anywhere from 25-75 people, and you kept saying “yes, I totally know what you mean” when you read the story above, I’d love to hear from you. Please email me at jason@37signals.com and tell me your story. If I feel like you’d be a great fit for this product, I’ll tell you more.
Back in high school my track coach would often get on me about my sloppy block practice. He’d say “You aren’t setting up in the blocks properly. You’re rushing it, just going through the motions.” I’d say “Why does it matter right now? I’m not racing anyone today. I’ll do it right at the meet this weekend.”
“I’ll tell you why it matters” he’d say, sternly. “You play like you practice. Practice sloppy and you’ll play sloppy.”
You’ll play like you practice. You’re not going to be sharp unless you practice being sharp. I’ve heard this again over the years.
A few years ago I took a self-defense class. At one point in the class, we worked with fake handguns. We each had a partner and we had to work on scenarios where a gun might be involved.
The instructor repeatedly said, “When your turn is over, do not hand the gun to your partner. Instead, they’ll turn their back, and you’ll just drop it on the ground so they can pick it up and start the exercise over.”
That sounded weird. You’re right next to the person, why would you drop the gun so they had to pick it up?
Without having to ask why, the instructor explained himself: “If you practice handing the gun over to your partner now, you might end up handing the gun over to an actual assailant later. Don’t laugh, I’ve seen it happen.” Then he showed us surveillance camera footage of someone doing it in robbery.
It sounded ridiculous. Why would I ever give my gun to someone who’s attacking me? The answer is because if I practiced doing that earlier, I might do it later.
When humans are in stressful situations, we tend to fall back on our practice. If I practiced handing my gun over, I might mindlessly fall back on that when it mattered most. That would be bad.
Skip steps now, you’ll skip them later. Cut corners now, you’ll cut them later. You get used to what you do most of the time.
Customers don’t just buy a product — they switch from something else. And customers don’t just leave a product — they switch to something else.
It’s in these switching moments that the deepest customer insights can be found.
On the 12th of April, a group of 24 people will attend a unique, hands-on, full-day workshop to learn about “The Switch”.
Most businesses don’t know the real reasons why people switch to — or from — their products. We’ll teach you how to find out.
The workshop will be at the 37signals office in Chicago. The cost to attend is $1000. The workshop will be led by 37signals and The Rewired Group.
You’ll participate in live customer interviews.
You’ll learn new techniques for unearthing the deep insights that most companies never bother to dig up.
You’ll understand why people switch from one product to another and how you can increase the odds that the switch goes your way.
And you’ll be able to put everything you learned to immediate use.
There’s only one simple requirement: You’ll be asked to bring something with you. It won’t be a big deal. Details will be provided one week before the workshop.
Spots are limited. Only 24 people will be able to attend and participate. Want to be one of the 24? Register now.
“For the modern audience, the fluidity of objects in Robert Lazzarini’s body of work, for example, immediately registers instead as having been run through the computer and messed around with. As a nod to this sea change in perception, Italian designer Ferruccio Laviani has created the brilliantly disorienting Good Vibrations storage unit for Fratelli Boffi.” Read the full article.