Tips from Nike’s Founder

And you’re going to sell tennis from your trunk? That was the claim of Phil Knight’s father when he talked about his business idea. Nike Brand Emporium that we know today, started from what for many was a crazy idea: Import Japanese tennis shoes and sell them in the United States (US).

A revolutionary idea? Maybe not. As Phil once someone told him, “the last thing the market needs is another sports brand.” However, that was Buck’s dream, as his family affectionately called him.

Autobiography.

Buck tells in his autobiography Never Stop, how it all began in 1962 from a school project when he was at Stanford University. This project consisted precisely of sports shoes importer retailer. A trip changed his life, he left everything at age 24 and embarked on an adventure that aimed to meet several countries and make a stopover in Japan.

This stop allowed him to face a totally different world, and negotiate with Onitsuka executives, a sports shoes factory. With everything and his lack of experience, he managed to convince them to be the distributor of their products in US, during that same meeting the name of its first company “Blue Ribbon” arose. This was the second great lesson: overcoming fear, you are never too young or too old to negotiate with anyone on any planet, culture? No, it is not a barrier either.

The new company.

Buck’s budding enterprise soon paid off, the tennis shoes liked in his market and sales, only the first year, amounted to $8,000. Not bad for someone who started the business by selling 12 pairs and reached 300. Blue Ribbon started with the help of Phil’s father, his savings and a bank loan.

He was very clear that the goal was to grow, therefore, everything that he collected from the sales, was invested it and every order to Onitsuka was greater, the result? There was no equity, that is, there were no reserves or profits generated. For banks it was a flimsy company that could easily disappear, and then was not subject to credit. The third lesson: look for other financing sources. Buck knew about the existence of mercantile societies.

The hardest challenge.

One of the most difficult tests Phil faced was the Marlboro man, a wrestling trainer who turned out to be one of the first models to make the mythical American cowboy, the Marlboro Man. He was also a Onitsuka products distributor, and he soon sent a letter to Buck ordering him to stop selling products because he was an exclusive distributor.

Buck, backed by his parents, did not panic and flew to Japan to settle the matter. The fourth lesson: There will be a thousand setbacks, but it is necessary to take everything where it goes, and react. Onitsuka granted him the exclusivity in the US western area.

Born of Nike.

By 1971 Onitsuka offered to acquire more than 50% of Blue Ribbon, Phil’s refusal, did react to the Japanese company, and refused to continue as supplier. This push, at that moment for Buck meant a big blow, and he even thought it would be the end. But this was the beginning of Nike.

Soon Phil, in the hands of Nissho, a mercantile society, looked for other manufacturer options. This forced them to look for a logo, which cost $ 35, and a name, contribution of Johnson, Nike, the Greek goddess of victory. Problems, however dark they may seem, it should become opportunities.