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CONTENTS INTRODUCTION
3
COMPANY OVERVIEW
8
FUNDING
12
INTERNAL MEASURES
15
MARKETABILITY
18
SCALABILITY
26
CONCLUSION
33
BIBLIOGRAPHY
37
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Introduction To teach, read about, or write about entrepreneurship without actually experiencing how to start a company is a challenge that many entrepreneurship students face. Unlike other academic programs, the study of entrepreneurship does not follow a particular set of teaching guidelines. Though entrepreneurship professors have a wealth of knowledge to share, there is only so much that a undergraduate entrepreneurship student can retain and apply to practical situations. The art of starting a business is, from what we’ve learned, almost always about personal experience. Being able to translate curriculums into success is very hard to do when the entrepreneur has no prior involvement with starting a business. In fact, many professors argue that developing programs that focus on “action-learning,� or learning by doing, are the most effective at teaching students how to become prepared entrepreneurs. These types of programs tend to encourage students to start businesses early on in their careers. And while not all entrepreneurship students end up starting a business, studies have shown
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that those who do decide to start a business, are more likely to lead multiple start ups if they start at an early point in their careers. In many cases, this holds true. Even for those who have only started one business, the success rate is much higher for those entrepreneurs that start business at an early stage in their careers. Additionally, this form of experiential learning is what helps educate most entrepreneurs on how they are most likely to succeed as business people. The debate of how to educate the college students bold enough to start an entrepreneurial endeavor are also likely to benefit from understanding funding options. Ideally, students would be able to truly understand how to fund a company by the time they know the options that they have. No matter the source of funding, be it an angel investment or venture capital investment, etc., the power of knowledge is, in this case, extremely beneficial. One practice that is often cited as one of the best ways to fund a venture is referred to as bootstrapping. Bootstrapping is a term that derives from the well known idiom, “to pull oneself up by one's bootstraps,� which originally appeared in the Workingman’s Advocate in 1834. Since then, the term has been used to refer to a great many things. Not only can bootstrapping refer to a !4
software development program, and research and statistics method, but it can also refer to a type of business practice wherein a company is started without external assistance or capital. In a more specific sense of the term, entrepreneurs bootstrap as a way to finance a start-up. Those entrepreneurs that decide to bootstrap get a lot out of their decision. To begin, bootstrapping allows the entrepreneur to essentially retain complete ownership of the business. That means that, not only does the entrepreneur enjoy 100% of any future financial gain, but it also means that they are able to control their own destiny. Bootstrapping allows entrepreneurs the opportunity to focus single-mindedly on their customers without the substantial burden of finding and securing investment. With that said, bootstrapping can prove to be incredibly difficult. Beyond finding the capital to support a business, there is an enormous amount of responsibility invested in the founder(s) of the company. As the sole investor(s) in a company, no one else is liable for the performance of the venture. In many cases, this is the biggest risk for entrepreneurs who decide to bootstrap. Taking external investment can allow businesses to grow faster and do things more professionally from the very beginning. !5
In the end, however, entrepreneurs are guaranteed to learn a lot more about how to successfully start a company if they decide to bootstrap. Investors and entrepreneurs alike often advocate getting as far as possible before making the decision to receive external investment. This hybrid approach of bootstrapping and then looking for investors when the entrepreneur can no longer grow and/or support the business on their own, is a common practice amongst entrepreneurs. Nick Woodman, founder and CEO of GoPro, Inc. is one entrepreneur that, not only began at an early stage in his career, but also took this approach to funding his venture. Woodman is the perfect example of an entrepreneur that successfully bootstrapped a company because that’s exactly what he did. With the proper mindset and few mistakes, Woodman has been able to take GoPro to an entirely new level. So much so that he has been able to revolutionize video production. The purpose of this paper is to analyze a company and entrepreneur that successfully bootstrapped a venture. Understanding what makes a good company, and how to become a successful entrepreneur is, as stated earlier, not usually something that can be learned without actually starting a company. !6
However, looking at how this has been done in the past is something that could help give context to a generation of future entrepreneurs. Analyzing GoPro and its founder is a great way to learn about, and hopefully understand, how to start thinking like an entrepreneur. Throughout this paper, it will become more clear as to why Woodman is as successful as he is.
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Company Overview Before GoPro, if someone wanted to have any footage of themselves doing anything, whether it was video or photo, they not only needed a camera, they also needed another human being. If they wanted the footage to be good, they needed that other human being to have skill with the camera. Additionally, many cameras at that time were bulky, expensive, and made for the use of conventional photography. Any product manufactured for the sole use of documenting extreme action sports was exponentially more costly and inaccessible than that of any conventional photography equipment. As a result, most people never had any footage of themselves doing anything. Now, GoPro has revolutionized the way people capture, manage, share and enjoy experiences. From its humble beginnings as a camera manufacturing company, GoPro has evolved into, what they like to call, a media company. With its diverse line of products, they have enabled people from all walks of life to capture compelling and immersive photography and video content. The first GoPro was a waterproof film camera attached to a wrist strap. Nick Woodman, GoPro’s founder, sold them to California surf shops out of his
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van. Before long, he created a digital video camera that was a fraction of the size. He sold enough of them that he could afford to take lessons to learn how to drive a race car. That's when he realized what the camera could become. While at the racetrack, Woodman was stunned to hear that the track operators wanted to rent him a camera to put on the car for $100 for a half-hour session. When Woodman denied the offer, he strapped his wrist camera to the
front roll bar of the race car. Several of the workers began asking him where he got the camera. This is when Woodman realized that GoPro could evolve from a wrist camera company into an versatile camera company. GoPros are now everywhere. Even though capturing action sports remains the company’s most profitable selling point, people use them to turn family home videos into YouTube posts even strangers enjoy watching. Mount the !9
camera on a stick, and a game of fetch with your dog gets an entirely new perspective (see above). In fact, GoPro refers to itself as a “media company” because they believe that they can go beyond sponsoring athletes as a way to promote their brand. GoPro wants to promote their brand by also reimagining how the camera can be used. A GoPro can go just about anywhere, but what really sets it apart is that it allows anyone to become the star of their own real life movie. With its high definition wide angle lens, its cinematic imagery mesmerizes users. The quality of content from this handheld camera is equally dazzling. This is what brought GoPro to the level at which they were able to go public. The IPO (initial public offering), which was confidentially filed in February 2014, was valued at $2.95 billion. A substantial leap from Woodman’s initial investment of $30,000. This IPO has since made Woodman a billionaire, and has given his other initial investors (i.e. his parents) a very nice pay day. Even before the IPO, GoPro was enjoying an increase in revenue each quarter. GoPro has been involved in several corporate actions since 2011. The first being its acquiring of CineForm, a type of codec that allowed GoPro to released a 3-D camera. The codec was used to film the Academy Award Winning film, !10
Slumdog Millionaire. The second action that GoPro has taken is the hiring of former Microsoft executive Tony Bates as President reporting directly to Woodman. From the company’s headquarters in San Mateo, California, GoPro has become one of the most successful ventures of the century. Their unprecedented growth and strategic position in the market continue to excite investors and interest customers.
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Funding It’s hard to believe that companies as large as GoPro today, had humble beginnings. Nick Woodman had a dream to be able to watch himself surfing through the perfect barrel, and let his friends experience the same adrenaline rush. This began his quest to bring an affordable and waterproof wrist camera to the market. At that time there were very few affordable options on the market. The only comparable product on the market was a disposable waterproof camera. To raise money he sold belts that he and his girlfriend found while traveling in Indonesia. When he got back to California, he sold them out of his VW van to raise money for the prototype. In one summer he was able to raise enough capital to complete the prototype. At the time Woodman also moved back into his parent’s house to further cut costs. The first GoPro model used 35mm film that only took still shots. Woodman began to tour trade shows in the hope of finding a manufacturer who could make his dream come true. Once a producer was found, Nick took matters into his own hands and began sewing the wrist straps with his mom’s sewing machine. Woodman took every opportunity to cut costs as he had very
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little capital himself and borrowing money was his last resort until the company grew. He eventually gave in and borrowed money from his parents but to good measure because the company took off not too shortly after. The funding of GoPro came around in three different rounds over the course of three years. The initial seed capital was $265,000, mainly coming from his father Dean, a successful venture capitalist. Below is a breakdown of the initial investment:
11%
13%
Mark Woodman Mom Dean Woodman
75%
Even though Nick put up a good amount of his own money, it was nothing compared to his fathers’ investment. He has since admitted that, in the beginning, he was very weary about using outside capital. In an interview !13
published by The Wall Street Journal he said, “Losing other people’s money was terrible. I was the guy who went around and convinced people to put their money in. They believed in us and in me and I didn’t come through. That’s why I started GoPro by bootstrapping it.” The feeling of disappointment can be a very strong motivator to succeed and that is exactly what Woodman did. He paid his father back immediately when the cash became available and that didn’t take long. Distributors such as Best Buy and REI began to take interest in the pocket size camera. In 2011, GoPro received its first round of outside funding, also known as a Series A from five different investment firms: U.S. Venture Partners, Walden International, Steamboat Ventures, Sageview Capital, and Riverwood Capital. In total these firms contributed $88 million in capital. More recently however, GoPro received a $220 million private equity investment from FoxConn International Holdings, a Chinese manufacturing company, in return for 8.88% stake. Foxconn, also known as Hon Hai Precision, is responsible for manufacturing a majority of Apple products. This deal opens up the realm of possibilities for GoPro in terms of production, distribution, and cost efficiency. When asked about future plans, Woodman says his goals are to expand sales and increase features. !14
Internal Measures Over the past few months since GoPro had it’s initial public offering (IPO) it has experience rapid growth in their financials, but that doesn't tell the whole story. The company went public on June 25th with share prices at $24. This price was on the higher end of the experts estimates, but still the company did not
Net Sales Since IPO
Net Sales (In Millions
380
285
190
95
0
Q2 2013
Q3 2013
Q4 2014
Q2 2014
Data Available Since IPO
disappoint. By July, the company was trading at over 100% over IPO. Initially the company put 123,000,000 shares on the market and that number has increased since then to 126 million. At the time of the IPO the company was valued at $2.95 Billion, a very impressive number considering where the company started. !15
Unfortunately, share price does not give a whole representation of the company and its standing therefore other metrics will come in handy. Their last quarter saw just over $1 Billion in revenue and a profit margin of 3.27%. Their debt to equity is currently at 158.16% which indicates that at the moment they took on quite a lot of debt to either expand production, invest in new technology or
Annual Revenue (Millions of Dollars) 2010
64
2011
234
2012
526
2013 $
986
-0
$
250
$
500
$
750
$
1,000
simply needed to cover costs. If the ratio continues at this level it could pose as a risk to investors and hurt the stock price in the long run. Since the IPO, net sales have been consistent, which indicate a strong customer base especially when broken down quarterly (refer to graph above). GoPro is approaching $1,000,000,000 in revenues for the year an impressive feat when considering the fact they have been close to doubling their sales numbers each year.
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Their cameras have such large applications from professionals who want to get aerial shots with a drone, to kids who want to make their own skateboarding video at home, its no surprise they continue to grow at astronomical rates. Growth is almost always a good indication of success but it show efficiency and effectiveness. Two metrics which reflect on their leaders more than the company itself. Two ratios that help get a better picture are Return on Equity (ROE) and Return on Assets(ROA). ROE measures income as a percentage of net sales. Essentially, how much are shareholder’s dollars contributing to profit. The Wall Street Journal last reported GoPro’s ROE at 126.68% or for each dollar of investment, they are creating $1.26 in revenues. This is above the industry average and experts see this number leveling out over Company
Return on Assets
GoPro
12.78%
Industry
13.77%
time, their rapid growth contributes to this number being inflated. ROA measures the companies return on their assets or internal investments. In terms of management, this measure shows how effective management is at generating
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revenues with company assets. A comparison table between GoPro and the industry average can be seen on page 17. Currently, they are below the industry average, but as an asset intensive company it is much more difficult to raise their ROA when competing with other tech companies who don’t manufacture goods and have minimal assets. Looking at the change in stock price since their public offering shows the faith the market has in the company and its growth potential. GoPro is on its way to creating a video and technological empire. Although this kind of growth is not sustainable, their growth will continue but not as rapidly as it once was. GoPro will continue to be innovators in their sector as this is only the beginning for a company that will be here for many years to come.  
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Market Place The action sports camera is new on the scene when it comes to consumer hardware products. This industry was pioneered by GoPro, but has continued to boom; tech-hardware companies across the world have done their best to compete with Nick Woodman’s innovations. From family movies to action sports videos, GoPro and its competitors have proved to capture experiences like never before. This industry has enabled second hand experiences to be as novel as the first, thus changing the camera industry. While GoPro is at the forefront of the market, competitors such as JVC, Sony and The Contour have entered the market in recent years. These competitors all have the same goal; to enable consumers to capture the adventurous lifestyles that they live. At this point, each company has created a signature design and housing in attempts to get some type of edge on the industry leader, GoPro. The goal of all of these brands is to create a wearable or mountable camera that is lightweight, small, and durable while being able to produce the highest quality photo out there.
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Each of these products share the same target market, all of these companies (especially GoPro) have watched the cameras being used in ways they would have never imagined. Particular “add-ons” have greatly expanded these originally targeted markets. Action videos are not the only thing these cameras are putting out there. As the “selfie” is trendier than ever, GoPro and its competitors have gathered interest from teens, travellers and a multitude of other audiences who may not be using action cameras as the companies originally thought. GoPro comfortably stands atop the list of action camera competition, but one of more popular alternatives is the JVC Adixxion. The Adixxion, similar to GoPro, is a mountable waterproof camera that prides itself on “doing it a little differently.” The camera offers a slightly different twist from most its competitors. The Adixxion has attempted to edge the competition by having a built-in 1.5inch LCD viewing screen. This built-in feature enables users to change settings easily, see the features they are selecting, and the content they are shooting. This feature is a great example of JVC trying to stand on the shoulders of GoPro, as GoPro offers an LCD BacPac only as an add-on, sold for 79.95. The Adixxion is also constructed to be a bit more “rugged” than its competitors. The camera !20
housing is not only waterproof and shock proof, but also dust proof and freeze proof. The common “bullet style” design is easily mountable and streamlined, for minimum air and water resistance. JVC’s action sports camera additionally tried to expand in its features by offering multiple white balance options. These options were added in attempt to counter colored light emitted by external light sources. This feature is helpful in producing a realistic and consistent picture in all environments. Whether the user is shooting indoors or underwater, the Adixxion offers a white balance option to enhance the image. The time-lapse feature is one that is seemingly universal throughout the market. The Adixxion offers 2 different options of timelapse intervals whereas GoPro’s Black edition offers 7 options. Additionally, The Adixxion matched GoPro’s ability to shoot in several different resolutions such as 1080p, 960p, and 720p, making this a very good alternative to GoPro’s Hero3 models. Sony is yet another company who has ventured into the action sports camera industry. Sony, which is ranked by Forbes as the second most reputable technological brand, is another notable competitor for GoPro. The brand is universally known for their high quality products. In 2012, Sony came out with !21
their “Action Cam” which was likely the biggest threat to GoPro’s figurative throne. The Sony action cam sports a similar bullet-shaped design to the JVC Adixxion and is notably less expensive than both the GoPro and the Adixxion. The Sony Action Cam is another mountable and wearable camera with 1080p60 resolution capabilities. Although reviews claim it to be a step down from the competitors, Sony’s price point and the cameras capabilities make it a good buy. The Action Cam is slightly more cumbersome than the GoPro Hero models and The JVC Adixxion. The bullet-shape design features an LCD display similar to that of GoPro’s. Like on the Hero models, the screen enables users to navigate through the settings, but not view the image they are shooting. Unlike the GoPro, Sony does not have an LCD viewing screen add-on. The extras that are offered by Sony are limited to a waterproof housing and several different styles of mounts. The camera is not conducive to growth; the upgrade options are very limited. In addition, the water housing for the action cam does not enable users to navigate through settings while in the casing. This is a huge downside of this model for anyone looking to use the camera around or in the water.
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The Action Cam has a presence in the market due to its sturdiness, battery life and low price point. Despite some common faults, the Sony Action Cam still allows users to shoot scenes similar to that of its competitors with a similar picture quality. The Contour is another alternative to The GoPro Hero models. The Contour is GoPro’s most worthy adversary, as it is the only other company in the market fully dedicated to producing action sports cameras. The Contour, like GoPro, offers several different versions of its product. There is an entry-level version, The ContourRoam2, and a more advanced version, The Contour+2. Both Cameras offered by Contour feature 1080p video and wide angle lenses that are able to shoot 170 degrees. The two models differ in several ways, but the cameras themselves share a similar design and look. A few large differences between the two are their waterproof features and wifi capabilities. The ContourRoam is waterproof without an external casing whereas the Contour+2 is sold equipped with a casing. The Contour+2 has this in common with all of the GoPro Hero models. An additional similarity between the high-end Contour and the GoPro Hero2 through Hero3+ Black Edition models is the wifi capability. The Contour+2 is able to live stream the camera view on all smartphones. This !23
impressive and unique feature comes at a time when connectivity is essential to success. Contour is the one action camera on the market that’s has attempted to beat industry leader with its features. Unlike any of the GoPro models, the Contour+2 has a built in GPS mapping device, an external microphone jack and laser alignment for precise shooting. The three features offer a different twist to the device giving it a slightly different selling point. It is clear that this was an advantage of the second mover, considering these are commonly stated concerns about all of the GoPro models. With a few different features, a streamlined design and several price points, Contour has proven to top the list of GoPro competitors. Finally, GoPro itself offers 3 separate models: The Hero 3 (pictured above), The Hero 3+ Silver Edition and the Hero 3+ Black Edition. The Hero 3+ Black Edition is currently the most advanced action sports camera on market. The camera which is a company proclaimed “Smaller, lighter and mightier,” offers the widest array of features, add-ons and capabilities. The Hero 3+ Black was !24
the 2013 Emmy award winner for “Best Camera.” It’s fair to say that GoPro’s success in the action sports camera industry is comparable to that of Polo with dress clothes. When someone sees an action camera, it is likely that they will refer to it as a GoPro, despite the brand of the camera. Unlike any other Camera in its class, the Hero 3+ Black Editions offers 1440p video resolution. This video quality is one that is so advanced that most TV’s and computers on the market today are incapable of displaying the picture. Additionally, The 3+ Black features a burst mode that offers three options for a series of shots. The device is capable of capturing 30 shots in one, two or three seconds, which makes shooting high-speed action shot series’ a breeze. Throughout the features, it is apparent that the Black Edition outmatches its competitors by having a greater amount of selections. GoPro separates itself with their constant commitment to innovate, improve and simplify. The company has made major strides throughout its short life. In 12 years, the company has essentially created a billion dollar industry. This is an industry that is only going to grow.
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Scalability Some say that timing was, is and will be the key to GoPro’s success. GoPro entered our society in a time where it fit technologically and socially. The combination of these things has proved to encourage constant growth for the company and the culture it has built. Not only can GoPro’s tangible products grow, but also the access and availability to its images and videos are limitless. It seems that everyday, new clips come out that are more amazing than the last. This will continue, as GoPro’s are the highest selling camera on the market and as high-speed Internet becomes more readily available internationally. In 2005 the domain for YouTube was reserved with a dream to create a video-sharing platform. To date, YouTube has “more than 1 billion unique users each month.” This is a perfect example of the superb timing of Woodman as entered the market with his innovations. This is platform on which the majority of GoPro videos are viewed. “Over 6 billion hours of video are watched each month on YouTube,” with GoPro having a good portion of those views. The ability to relive experiences through a Point of View (POV) camera is one that has become a fad of our generation. This has proved to be prosperous for both
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YouTube and GoPro. The two companies have worked in a way that is almost symbiotic. As more GoPro videos are created, more hours of YouTube videos are watched, and as more videos are watched, GoPro, the product, becomes more desirable to those who watch them. The extent of GoPro’s reign over the Internet has only just begun with YouTube, while there is a multitude of different video sharing platforms in existence. Social networking has proven to be another driver of GoPro’s success. Approximately 72% of Internet users were active on social media as of the beginning of 2014. There are currently over “1.15 billion Facebook users” worldwide. Facebook is yet another platform where action sports cameras can be viewed, shared and commented on. With this incredible number of users, videos can be spread internationally in a matter of seconds, thus giving GoPro and other similar videos the power to reach billions of people. Through users sharing their favorite videos, GoPro is being marketed without the original photographer or videographer even realizing. Another notable platform that played and integral part in the GoPro explosion is Instagram. Instagram is a photo and video clip-sharing platform where users are able to post, like, classify and comment on posts. The hash tag, !27
which is used as the classification system on Instagram, has helped in grouping photos by their content, camera, and meaning. The hash tag has been used in millions of different ways. The “#GoPro” has become commonplace as photographers and videographers alike share their work and identify how, what and why they are capturing something. The GoPro hash tag is one that is recognized and revered as a cool style of “Instagramming.” While Instagram is very popular among teenagers and young adults, GoPro has thrived as more people are exposed and more people are inspired. The high quality capabilities that the GoPro has, make for some of the clearest and most striking posts on social networks. The better the post, the more likes it generally receives. This concept of liking a photo is one that carries and inexplicable amount of weight in our 21st century society. This opened opportunities and created competition between users to post the best photos. This competition has inspired Instagram users around the world to go to great lengths to put out good photos. The GoPro has luckily been in a position to take full advantage of this situation and attract markets outside of their target market. Along with the access that has come with social networks, have come certain fads that have aided the GoPro in its journey. One in particular is the !28
“Selfie.” The “Selfie” is a picture taken by a camera user of them self. In recent months, the action camera boom has been remarkably noticeable due to one specific add-on, the GoPole. The GoPole is one of GoPro’s many ancillary products that have helped build the consumer GoPro experience (or lifestyle). The GoPole makes for some of the clearest, most amazing “selfies” out there due to the GoPro’s wide angle view and high picture quality. These “selfies” have seemed to multiply exponentially as young people have realized that good “selfies” equate to more likes and an improved image on social networks. It is fair to say that this was not Nick Woodman’s intention when experimenting with his original surfing camera. This is the type of growth that I believe will continue throughout GoPro’s livelihood given the business model and modern day society. The convenience of GoPro has permitted it to be used in many different ways. The fact that it is wearable and mountable is a recipe for growth considering it can be attached to virtually anything in any environment. Human creativity is the only thing that could limit GoPro’s potential for growth. The more creative the users are, the more opportunities they will have to capture images that have never been seen before. !29
The GoPro Hero models have proven to be a key tool used by photographers and videographers in their travels and everyday lives. In addition to this, GoPro has created a new up and coming culture in the action sports world where action sports athletes are now also photographers and videographers. The rush that one can experience when watching a GoPro video inspires this culture and promotes all adventurers and stunt devils to document their endeavors with a GoPro. If there is no GoPro footage, then how do we know it really happened? This is the mindset of the extreme sport world nowadays. These videos are shared among users and are constantly competing with one another. The size and convenience of the GoPro makes finding new and interesting angles easy. These new angles are constantly experimented with whether riding a board, flying a plane or climbing a mountain. The memories that are created by simply attaching a GoPro to something can last a lifetime. The adrenaline rush that can be experienced by watching a GoPro video second hand is the closest feeling to doing that act yourself. This fact is one that will push the envelope and promote continuous growth and experimentation with the Hero cameras. !30
Many other users have found productive uses of GoPro. One of Nick Woodman’s biggest surprises is the US Army’s incorporation of the camera in their tactical endeavors. The different mounts give The Army options in placement on their gear. The mountable cameras are now used in some cases to document missions and training operations. The durable, lightweight models offered by GoPro have proven to be rugged and durable enough to withstand the temperature, and environments of just about any potential consumer. The models offered by GoPro have proven to have many different uses due to the features offered, the lightweight design, and the superior ideology behind the usage of the camera. While Nick Woodman set out to create and action sports camera, he never would have anticipated the wide usage of his GoPro designs. The future of GoPro is one that is ultimately limitless. This is the case because the GoPro is truly versatile enough to be mounted anywhere. Whether the camera is being used to film a baby’s first steps or a fly-suit stunt, it is equipped and going to produce a high quality picture or video. GoPro has already established its ability to produce in all different environments. As a company, GoPro is thriving because of people’s realization that the more angles captured, the more incredible footage can be. Because of !31
this, GoPro has come out with a “3D Hero System.” This is just a glimpse of what the company has in store for their future. The double GoPro mount allows a user to conjoin two Hero cameras in one casing, allowing any person with access to two GoPro Cameras and the double casing to capture threedimensional videos. The combination of the two wide angle cameras make technology that would never be believed to be accessible by the general public, a reality. With this as a small example of what may be to come, GoPro seems to have no ceiling. The company will continue to bring in millions of dollars annually and attract all groups from the guy next door to Professional skydivers.
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Conclusion Bootstrapping takes discipline and sacrifice. In order to truly reach success like Nick Woodman has, one must maintain the principles of bootstrapping throughout the entire life of the organization. These are to cut costs wherever possible, do as many things by yourself that are possible. These kinds of people are often referred to as theory Y people. They enjoy work, are problem seekers, and are always motivated to make changes and continue to improve. They seek out ways to be more efficient instead of sticking with a process or method because it works for the time being. This is not to say there are no downsides to this method. Unfortunately, its an extremely demanding lifestyle and can detract from one’s personal relations and life. You assume all the risk because you are funding the operation completely. This can be both a positive and negative because it is extremely motivating but can be unnerving at times. You only have yourself to answer to and you can be your harshest critic. It can also be crippling and prevent you from making expansions as if you were funded from outside sources.
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From his humble beginnings selling belts out of his van to going public with a valuation just under $3 Billion, Woodman has not lost sight of these principles. The company began with a single, simple idea that has evolved into one of the most innovative and entertaining products on the market. People are now able to experience events, activities, and places as if they were right in front of them. GoPro is taking on industry giants who have established them in the marketplace even before Woodman was born. GoPro offers a unique product that can only be matched by professional equipment at a fraction of the cost. Their marketing plan is generated by user-created content at a small price of traditional advertising. This is another perfect example of bootstrapping technique. Their customers go to unique places to create their own films and GoPro pays for the rights to use it. No production team or film crew needed. The user feels special because they made a video that stood out and GoPro gets close to free advertising. Creative freedom is essential to creating a business and bootstrapping allows for that freedom to be utilized. It may take longer for the business to grow and become the giant it is today, but it also allows for one to listen and respond to the market and its wants and needs. Without this slow growth, !34
GoPro might not be the same company it is today. It’s been a 10-year journey for Woodman getting GoPro to where it is today and still he is unsatisfied. It will never be finished because there’s always something to be done to improve some aspect of the business. It is how entrepreneurs think and operate, and Woodman is a prime example of this mentality.
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