20 Simple Rules for Starting a Business

Starting a business from scratch is both exciting and challenging. Drawing inspiration from 37signals (now Basecamp) and their unconventional, bootstrapped approach to building successful products, here are 20 actionable suggestions to help you launch and grow your business:

1. Start Small, Stay Lean

• Focus on the essentials. Avoid overcomplicating your product or service. Build a minimum viable product (MVP) that solves a specific problem for your target audience.

2. Solve a Real Problem

• Identify a pain point that people are willing to pay to solve. 37signals built Basecamp because they needed a better way to manage projects internally.

3. Bootstrap Whenever Possible

• Avoid relying on external funding initially. Use your own resources or revenue to grow your business. This keeps you in control and forces you to prioritize profitability.

4. Focus on Simplicity

• Design your product or service to be intuitive and easy to use. Complexity is the enemy of adoption. 37signals’ tools are known for their simplicity and user-friendly interfaces.

5. Build for Yourself

• Create something you would use. 37signals built tools they needed internally, which ensured they understood the problem deeply and could create a solution that resonated with others.

6. Embrace Remote Work

• Build a remote-first team. This allows you to tap into global talent, reduce overhead costs, and create a flexible work environment.

7. Prioritize Profitability Over Growth

• Focus on generating revenue early rather than chasing rapid growth or scaling prematurely. Profitability ensures sustainability.

8. Say No to Distractions

• Avoid chasing every opportunity or feature request. Stay focused on your core offering and perfect it before expanding.

9. Charge from Day One

• Don’t be afraid to charge for your product or service. If it provides value, people will pay for it. Free plans can attract users, but paying customers validate your business.

10. Build an Audience First

• Share your journey, insights, and expertise through blogs, podcasts, or social media. 37signals’ blog, Signal v. Noise, helped them build a loyal audience before launching their products.

11. Iterate Based on Feedback

• Launch early, gather feedback, and improve your product continuously. Don’t wait for perfection—ship something usable and refine it over time.

12. Focus on a Niche

• Start by serving a specific audience or industry. A narrow focus allows you to dominate a niche before expanding to broader markets.

13. Automate and Standardize Processes

• Use tools and systems to streamline repetitive tasks. This frees up your time to focus on strategic growth and innovation.

14. Be Transparent

• Share your successes, failures, and lessons learned. Transparency builds trust with your audience and customers.

15. Avoid Overhiring

• Start with a small, versatile team. Hire only when absolutely necessary, and prioritize people who can wear multiple hats.

16. Create a Strong Brand

• Build a brand that stands for something. 37signals’ brand is synonymous with simplicity, clarity, and no-nonsense tools.

17. Focus on Long-Term Value

• Avoid shortcuts or quick wins. Build a business that delivers lasting value to your customers and creates a sustainable competitive advantage.

18. Write and Share Your Story

• Document your journey and share it with the world. Writing helps clarify your thoughts and attracts like-minded people to your mission.

19. Don’t Fear Competition

• Focus on your unique value proposition rather than worrying about competitors. 37signals succeeded by doing things differently, not by copying others.

20. Stay Independent

• Retain control of your business. Avoid taking on investors unless absolutely necessary. Independence allows you to make decisions that align with your vision and values.

Bonus: Learn from 37signals’ Books

• Read *”Rework”* and *”It Doesn’t Have to Be Crazy at Work”* by Jason Fried and David Heinemeier Hansson. These books distill 37signals’ philosophy into actionable advice for entrepreneurs.

By following these principles, you can build a business that is not only profitable but also aligned with your values and vision. Like 37signals, focus on solving real problems, staying lean, and creating value for your customers.