One of my biggest bug-bears with modern day media outlets is the wildly binary picture they portray of business and entrepreneurship - focusing on big fundraises & successful IPO's on one end, high profile bankruptcies on the other. This makes it hard to learn about everything in between - the blood, sweat and tears of building companies, the fires to put out on a daily basis.
Phil Knight in Shoe Dog talks with incredible honesty about the birth of Nike. It is truly inspiring to hear on how many occasions his business - built on a $50 investment - was so often on the brink of bankruptcy. Knight talks about the life support his business was built on, and his constant negotiations with his bank to keep his business alive.
One of the most surprising things for me was that Knight initially got into the business as a reseller of a Japanese shoe brand (Onitsuka, aka Asics). Partnering with a former US track athlete and his running coach - Bill Bowerman - Knight and Bowerman had a genuine passion for athletics, and simply had faith that their customers needed better running shoes. Knight spotted a supplier in Japan, and brought these to the US market.
One of the most endearing elements of Knight's story is the crack team of early employees he assembled, each with their own quirky story. They had Bob Woodell, a former athlete whose athletic dream was crushed when an accident confined him to a wheelchair. There was Delbert Hayes, an overweight accountant who couldn't make partner in his firm because he was deemed too overweight, but built most of Nike's early operations. Bowerman himself invented a new type of running sole designed for grip, where he took inspiration from a waffle machine. It seems so much of the success can be attributed to the genuine passion and energy of his core team - all of whom seemed to have a personal chip on their shoulder to validate themselves to the world.
Struggling with rapid growth and perennial low cash reserves, Knight talks about his consistent battles with his bank to extend credit on one hand, coupled with hard-nosed negotiations with his post-war Japanese partner, Onitsuka. Surprisingly, the relationship manages to last over 5 years, until eventually the difficulties of the relationship spill over. The late product shipments, corporate espionage, unclear communication and constant eyeing of other US partners forced Knight's hand.
After Knight abandons his efforts to simply be a Japanese reseller, his story turns a corner, into another remarkable tale of uncertainty, as he gives birth to Nike. One of my favourite snippets from the story is that he wanted to call his company Dimension Six, but was 'encouraged' by his team to opt for Nike. I've always felt that brand names are radically underestimated in terms of importance. Knight is so incredibly transparent in this book, and talks about how it was an art student that designed the iconic swoosh - what would eventually become one of them most recognisable logos in corporate history - and paid $35, commenting at the time that the design would 'have to do'.
I found this review quite difficult to write, because this memoir is really quite unique - I don't think Knight necessarily wants to 'teach' his readers anything, but instead just share his remarkable story and inspire the next generation of entrepreneurs. Gary V talks about this concept in his podcasts, but entrepreneurs and CEOs fail every single day, because success and outsized returns are supposed to be very very hard - unfortunately we never get to hear about these stories. Knight does an incredible job sharing his stories - I wish everyone could read this and be similarly inspired.
One of the most telling lines from his story is within his epilogue - after 400 pages detailing extreme stress, borderline bankruptcies, sleepless nights - Knight comments "God, I wish I could relive the whole thing."