Advice Line with Chet Pipkin of Belkin International
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this episode of How I Built This Advice Line, host Guy Raz teams up with Chet Pipkin, founder of Belkin International, to tackle the challenges faced by three early-stage entrepreneurs. (03:02) The conversation centers around solving real problems for consumers, which Chet identifies as the key to business success. (05:42)
- Core Theme: The episode emphasizes that successful businesses emerge from identifying genuine consumer problems and creating elegant solutions, rather than chasing trends or over-funding ventures without clear market need.
Speakers
Guy Raz
Guy Raz is the host of How I Built This and several other NPR programs. He's an award-winning journalist and entrepreneur who has interviewed hundreds of founders and business leaders about their journeys to success.
Chet Pipkin
Chet Pipkin is the founder of Belkin International, a company synonymous with computer cables, power banks, and adapters. He started the company in the early 1980s at age 21 after dropping out of college, building it from soldering cables in mom-and-pop computer shops to a business that sold for reportedly more than $800 million in 2018 to Foxconn.
Key Takeaways
Start with Real Problems, Not Solutions Looking for Problems
Chet emphasizes that one of the best ways to kill a startup is to overfund it, but more importantly, entrepreneurs must identify true problems that are real issues for people. (06:27) He advises that if you can come up with a simple, elegant way to solve that problem, you'll figure out the rest. This approach worked for Belkin when they solved the fundamental issue of computers not being able to communicate with each other. The key is ensuring your solution addresses a genuine market need rather than creating a product and then searching for customers.
Build Strategic Partnerships to Solve Cash Flow Constraints
When faced with inventory and cash flow challenges, Chet recommends forming tight alliances with manufacturers. (30:39) At Belkin, they built trust with their manufacturers who allowed them to keep inventory on the supplier's books and pull it as needed. This wasn't financially viable for the manufacturer, but the trust relationship made it possible. This strategy can help bootstrap companies manage growth without drowning in inventory costs or running out of stock.
Use Inside-Job Marketing for B2B Sales
Rather than attempting expensive frontal assaults on procurement departments, Chet advocates for grassroots, "guerrilla" marketing approaches. (44:37) He uses Slack as an example of a company that gets individuals inside organizations to use their product first, who then become internal evangelists fighting for organizational adoption. For B2B sales, focus on getting critical mass of people inside the organization using and advocating for your product, rather than trying to sell directly to HR or procurement.
Prioritize User Experience Over Everything Else
Chet believes that many businesses will "live or die" based on the actual user experience of their product. (20:42) This means going beyond solving the core problem to ensuring the solution feels good to use. He emphasizes the importance of measuring user satisfaction through tools like Net Promoter Scores and conducting extensive customer interviews. The experience must not only work functionally but also feel premium and desirable to users.
Stay True to What Works Rather Than Following "Expert" Advice
Looking back on his journey, Chet's biggest regret was listening to so-called professionals who told him the "right" way to run a business at various stages. (53:23) Some of their biggest errors came from abandoning systems and approaches that were working for their business in favor of conventional wisdom. He advises entrepreneurs to follow their heart, stick with what works, and continue as lifelong learners without worrying about what others say is the "right" way to do things.
Statistics & Facts
- Earth Suds has sold over 200,000 tablets to customers worldwide and is on track to do over $100,000 in sales this year. (11:43)
- Sideline Bags expects to achieve approximately $100,000 in sales this year, representing a 10x increase from the previous year. (28:54)
- RolleFlex will achieve about $5 million in sales this year, up from $3 million last year, with 99% of sales being direct-to-consumer. (43:01)
