Book: Shoe Dog
I think Shoe Dog by Phil Knight is the best memoir I’ve ever read by a business person.
I consumed it in a day last week. It’s about the origin story of Nike, which started out as Blue Ribbon Sports.
Unlike so many memoirs, it’s not an equally balanced arc through Knight’s life. It’s not an ego gratifying display of his awesomeness, heavily weighted in the success of the company and all the amazing things that went on around that. Instead, it’s a deep focus on the beginning years of Nike especially around the first decade. It quickly gets to 1964 and the equal partnership between Bill Bowerman and Knight. But then it takes it’s time, year by year (each chapter is titled with the year number only) through the first decade of the company.
It’s an incredible story. I didn’t realize that for the first five years of the company, Knight had to work full-time – mostly at Price Waterhouse and then Coopers & Lybrand as an accountant – because the company didn’t have any resources to support him and his new family. He used nights, weekends, and in all the gaps in between to get Nike (the Blue Ribbon Sports) up and running. Year one revenue – in 1964 – was $8,000. Year two revenue – with one full time employee (not Knight) was $20,000. Year 41 revenue (2015) was $30.6 billion with a net income of $3.3 billion.
Knight covers all of it in detail. The ups and the downs. The many downs. The moments where he felt like he could lose it all, which seemed to happen at least once a year. His personal struggles as a leader and a manager. The people that drove him fucking crazy at the beginning, but were ultimately indispensable to the company. His momentary conflicts about whether or not the struggle was worth it. The breakthroughs – mostly understood in hindsight – when he realized they had gotten to another level.
The thread of financing the company, especially through the first decade, was just incredible. His only real source of financing was tradition banks (who sucked) and partners (playing the float). The company had literally no equity available to it, but was growing at a rate that would put most of today’s VC-backed startups to shame. He made it work and how he did it was awesome.
It’s incredible to get inside of a man now worth over $25 billion and the founder of one of the most iconic brands on the planet at the very beginning of his story. If you are a founder, this is a must read.