My name is Evan Carmichael and I believe that the fastest and most effective way to build a business is to model the strategies of people who have already done what you’re trying to do. I call it Modeling the Masters. My last post with over 8,000 views was: How to Be the Expert, Market, and Stay Focused Like Calvin Klein

Today we're going to look at how a young man left the secure job that his father wanted him to take to follow his passion in the sporting world. He went on to build one of the most well known companies in the world. This is the story of Nike founder Philip Knight and the top 3 lessons that you can learn from his success.

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"We had no master plan. It was totally seat of the pants." - Philip Knight

Philip Knight (born February 24, 1938) is the co-founder and Chairman of Nike. Growing up in Portland, Oregon, Knight discovered he had a love for running and went to train with the legendary track coach Bill Bowerman at the University of Oregon. In addition to coaching, Bowerman was experimenting with creating new types of shoes and Knight field tested them on the track for him.

After graduating, Knight went to graduate school at Stanford and signed up for a small business class. He had to create a business plan in the class and thought back to Bowerman's shoes. In his business plan, Knight developed a blueprint for superior athletic shoes which could be produced cheaply in Japan. After taking a job as an accountant to make his father happy and hating it, Knight flew to Japan to find a factory to make the shoes. He returned home to create a partnership with Bowerman. They each invested $500 into the business and named it Blue Ribbon Sports (later changed to Nike). In its first year the company sold only $364 worth of shoes but Knight was determined to make the company work and stuck with it until it did.

Today Nike brings in almost $20 billion in revenue. Knight's stake in the company gives him an estimated net worth of US$12.7 billion, making him the 60th richest person in the world.

Action Item #1: Have a Clear Focus

As entrepreneurs it's often hard to stick on your path when you're not getting the momentum you were hoping for or when things seem to be falling apart around you. But almost every business owner has to go through those dark days to get to the light at the end of the tunnel and you need to have the faith and courage to stick to your vision and stay completely focused on doing what you set out to do.

As Nike grew, Knight had to decide what the focus of the business would be. Should he expand to get into the fashion business? Since he had such success sponsoring athletes, should he expand and start sponsoring other celebrities? Knight decided that for his company to continue growing he would have to have a clear focus of what he wanted the company to be. It would make it easier for him to make decisions and also allow his team to work towards a common goal.

According to Knight: "We wanted Nike to be the world’s best sports and fitness company. Once you say that, you have a focus. You don’t end up making wing tips or sponsoring the next Rolling Stones world tour... We’re not in the fashion business... We’re in the sports business, and there’s a big difference.”

Action Item #2: Think of Business as War

The business world is very competitive and some industries are more cutthroat than others. If you're offering a new product or service that you're hoping will take customers away from your competition, expect that those competitors will fight back hard. Have a plan to beat them and to start winning their market share.

Being a former athlete himself, Knight loved competition and relished the chance to compete in the business world. Knight treats business as war and has instilled within his company a healthy dislike of its competitors. Always trying to one up his competition, when Reebok went to the expense of sponsoring the entire Atlanta Olympic games, Nike sponsored just the top athletes, but gained much more valuable coverage than Reebok. It was also his competitive streak that made him want to sign a 20 year old Stanford golfer named Tiger Woods before his competition could. It cost Knight over $40 million, but it was a price tag well worth it in order to keep this golfing prodigy out of the hands of his competitors. Nike is a very competitive organization and Knight wouldn’t have it any other way.

According to Knight: "Sports is natural, instinctive, competitive, and, in the end, rewarding. All of us at Nike get to earn a living in that world – a world that is easy to believe in... Business is war without bullets."

Action Item #3: Just Do It

The single thing that differentiates entrepreneurs from everyone else is that you went for it. You left the security of a steady paycheck to venture into the unknown for your chance to determine your own destiny. You need to keep this attitude in mind as you grow your business. Don't be afraid of making mistakes. You won't be able to do anything significant if there isn't a risk of failure.

Nike is known for its slogan "Just Do It" and it's a statement that accurately reflects how Philip Knight acts as an entrepreneur. He's always taking chances, is willing to fail, and pushes the conventional limits to accomplish his goals. A great example is his relationship with basketball superstar Michael Jordan. In 1984 Knight signed the young Jordan to a sponsorship deal. It was a big risk as Jordan was only 21 years old and was just breaking into the league. The idea of players being sponsored was also a new phenomenon and was a risky and unproven concept. The deal proved to be a big success for Nike and provided a huge publicity and sales boost for the company. If Knight was afraid to "Just Do It," if he had been afraid to make a mistake, the deal would never have happened.

According to Knight: "The trouble in America is not that we are making too many mistakes, but that we are making too few."

True Story

In 1972, Knight decided that his company, Blue Ribbon Sports, needed a new name and a new logo. Knight liked the name "Dimension Six" but his staff disagreed. One employee suggested "Nike" after the Greek goddess of victory.

Knight then paid $35 to Carolyn Davidson, a University of Oregon student, to design the now famous "swoosh" logo. At the time Knight said "I don't love it, but it will grow on me." He was under a deadline to pick a logo so he went with it and a the new company was born.

More Quotes

"Ultimately, we wanted Nike to be the world's best sports and fitness company. Once you say that, you have a focus."

"The trouble in America is not that we are making too many mistakes, but that we are making too few."

"Everybody wants a certain amount of stress. Most people have too much, but I didn't want too little, either."

What Do You Think?

Do you have any problems to "Just Do It"? How do you stay focused? What part of Philip Knight's message impacted you the most? As always, I’d love to hear your thoughts if you leave a comment below!

Evan Carmichael

To learn more check out my list of Philip Knight articles or my website, EvanCarmichael.com.