Beyond the Swoosh: Unconventional Lessons from Nike's Founder
A look into Phil Knight's memoir reveals the core lessons that turned a sneaker-selling startup into a global phenomenon.
You are reading The Third Angle. The publication is mostly about crypto and economics, my areas of expertise, but could also be about many other things such as geopolitics, science, AI, and health: all areas I love as well.
The Third Angle is run by Juan Aranovich, an economist from Argentina, managing editor of Unchained, researcher at Ryze Labs, and crypto enthusiast.
I recently finished reading ‘Shoe Dog,’ the memoir of Phil Knight, the founder of Nike. I found the book to have valuable lessons, ones that you couldn’t find in management books whatsoever.
When Phil Knight started what would eventually become Nike, he wasn’t trying to revolutionize the world of sports apparel right off the bat. Instead, he began by selling imported sneakers from the back of his car.
I now picture Knight not as someone who re-invented the wheel, like Steve Jobs or Elon Musk, but as someone who took some things that worked, hired the right people, and made a few good choices. And, more often than not, that’s what it seems to take to have a company valued at $142 billion.
So, let’s break down some of these unconventional lessons that apply not only in business but also in life:
Knight’s hands-off approach with Jeff Johnson, his first hire, is a lesson in trusting your team. Johnson wasn’t just selling shoes; he was building a community around running. This wasn’t by accident. He was passionate about running, and that passion was infectious. It turned the store into a hub for runners, a place where people could share their love for the sport. This shows the importance of hiring people who love what they do because their passion can turn a simple product into a community.
The story of Phil Knight bluffing about having an East Coast office to secure a distribution deal sounds like something out of a movie. Yet, it worked. This move was risky, but it also showed Knight’s determination to make his company succeed. Sometimes, you’ve got to fake it a bit to get to where you want to be.
In its early days, Nike wasn’t about innovation; it was about finding a foothold in the market. The company began by selling other brands’ sneakers, only later developing its own products. He didn’t make them himself, he didn’t design them, he just sold them. It’s a humble start, reminding us that big things often have small beginnings. This reminds me of the so-repeated minimum viable product (MVP) that entrepreneurs always tell you to work on first.
This part of the story is important because it highlights that you don’t always need to start with a groundbreaking idea. Sometimes, starting with what you have and gradually working towards innovation is a valid path.
When it came time to give their shoes a brand name, Phil Knight didn’t have a eureka moment where he came up with “Nike,” the Greek goddess of victory. Instead, the name was suggested by a colleague, and Knight wasn’t immediately sold on it. He thought it was okay and believed it might "grow on him," a phrase he repeatedly used later in his life. This shows that not every decision in the early days of a now-giant company was made with absolute certainty and confidence. It underscores a very human element in business: sometimes, decisions that don’t feel monumental at the time can turn out to be incredibly impactful. Knight’s initial lukewarm reaction to the name “Nike” and his willingness to let it grow on him demonstrates the unpredictability of branding and how brands can evolve to embody values and aspirations they were not initially designed to represent.
Even when Nike started making its own sneakers, the first ones weren’t perfect. But because of the trust and reputation they had built, people continued to support them. This part of Nike’s history underlines the importance of building a strong relationship with your customers. Your reputation can carry you through tough times, allowing you room to improve and bounce back.
Knight’s strategy of looking for more funding even when the company was doing well financially was a smart move. It shows the importance of always planning for the future, ensuring that you have the resources to keep going even when times get tough.
The breakup with Onitsuka, their original supplier, could have been a disaster for Nike. Instead, Knight turned it into a rallying point, calling it their “Independence Day.” It marked Nike’s transition from a distributor to a brand with its own identity. This moment is a reminder that what might seem like a setback at first can be an opportunity to grow and redefine yourself.