In this episode (originally aired February 1, 2022), 37signals’ co-founders Jason Fried and David Heinemeier Hansson sit down with Shaun Hildner to discuss the consequences of building a business solely with the intention to sell. They share their perspective on building a business for the long haul versus for an exit.

Key Takeaways:

• 00:46 – Building a company to sell can encourage mediocre output
• 07:14 – Taking shortcuts is a reflection of one's character
• 09:41 – Why it's better to have a commitment strategy than an exit strategy
• 11:21 – Not all businesses should become unicorns
• 14:58 – What the founders would do if they had to begin again

Links and Resources:

• Books by 37signals
• Sign up for a 30-day free trial at Basecamp.com
• The REWORK podcast
• The Rework Podcast on YouTube
• The 37signals Dev Blog
• 37signals on YouTube
• @37signals on X

Bigger isn't always better. In this episode of The REWORK Podcast, 37signals’ co-founders Jason Fried and David Heinemeier Hansson share the drawbacks of chasing high-profile, enterprise deals. The two founders explain why they prefer their business model that's built around serving smaller clients. 

Key Takeaways:

• 00:35 – The biggest clients can quickly become the biggest burden and the biggest risk
• 07:10 – The hidden costs of “whale-sized” clients
• 12:35 – Things to consider when defining your ideal client
• 17:02 – Knowing what types of clients you'll enjoy working with
• 19:53 – How venture capital funding can make a difference when choosing your ideal clients

Links and Resources:

• "Don't have a biggest customer" from Jason Fried's HEY World
• "A Static Business is a Healthy Business" from Jason Fried's HEY World
• Books by 37signals
• 30-day free trial of HEY
• Sign up for a 30-day free trial at Basecamp.com
• HEY World | HEY
• The REWORK podcast
• The Rework Podcast on YouTube
• The 37signals Dev Blog
• 37signals on YouTube
• @37signals on X

As the year winds down, 37signals’ co-founders Jason Fried and David Heinemeier Hansson join host Kimberly Rhodes to talk about the company's end-of-year routine. They explain their process for the last few weeks of the year that aren't part of a formal six-week cycle, and they share what they gain from this transitional period of "wandering."

Key Takeaways:

• 00:43 – The informal end of year process
• 05:24 – Self-directed work, bug fixes, and tying up loose ends
• 08:22 – Using the downtime for forward thinking and planning
• 12:43 – Viewing the year end as a shift to the next chapter rather than a fresh start

Links and Resources:

30-day free trial of HEY

Books by 37signals

Sign up for a 30-day free trial at Basecamp.com

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

@37signals on X

Before introducing a new product feature, it’s essential to first understand the problem you're trying to fix. In this episode of The REWORK Podcast, 37signals’ co-founders Jason Fried and David Heinemeier Hansson share a recent experience designing a new feature in HEY. During the process, the team pivoted and changed direction, resulting in a better design.

Key Takeaways:

• 00:44 – The original product design plan and what changed along the way
• 02:31 – The difference between specifying the outcome and diagnosing the actual problem
• 06:27 – The design meeting where the team got to the root of the problem
• 08:32 – Why executive involvement early in the process adds value
• 13:39 – Pivoting on an original idea while maintaining the original appetite
• 16:04 – Creativity often comes when you've hit a roadblock
• 20:07 – The power of Power Through New 

Links and Resources:

30-day free trial of HEY

Books by 37signals

Sign up for a 30-day free trial at Basecamp.com

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

@37signals on X

Remaining profitable in business is a simple equation — sales revenue exceeding operating costs. In this episode of The REWORK Podcast, 37signals’ co-founders Jason Fried and David Heinemeier Hansson explain why controlling costs should be a bigger focus than what your competition is doing. They share some simple strategies for analyzing costs and share why operating without a formal office space might be worth considering.

Key Takeaways:

• 00:37 – Why you should stop worrying about what everyone else is doing
• 02:26 – Focusing on the things within your control
• 06:58 – Analyzing your business' cash cows, dogs, and shooting stars
• 11:21 – Budgeting doesn’t always mean being frugal
• 12:24 – Weighing cost against value
• 16:16 – What the company gained by letting go of a physical office space
• 18:31 – Aesthetics of a well-run, profitable business
• 21:06 – The biggest expenses entrepreneurs often overlook

Links and Resources:

"You only compete with one thing" from Jason Fried's HEY World

"Our cloud-exit savings will now top ten million over five years" from David Heinemeier Hansson's HEY World

37signals' meet-up expenses

Books by 37signals

Sign up for a 30-day free trial at Basecamp.com

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

@37signals on X

Every week, we invite listeners to send in their questions for 37signals’ co-founders, Jason Fried and David Heinemeier Hansson. In this episode, they tackle a fresh set of asks, covering topics from managing multiple product lines, the company’s bonus structure, and their thoughts on incorporating AI into their tools.

Key Takeaways:

• 00:37 – How 37signals' looks at AI and using AI while exiting the cloud
• 03:47 – How to prioritize work when managing multiple product lines
• 11:33 – Deciding what problems to tackle first
• 18:49 – The company's take on equity and the structure of their profit-sharing plan

Links and Resources:

37signals' Employee Handbook

Basecamp classes with live Q&A

Books by 37signals

Sign up for a 30-day free trial at Basecamp.com

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

@37signals on X

When it comes to business, it’s important to consider not only what customers would gain by using your product or service, but also what they're giving up. In this episode of The REWORK Podcast, Jason Fried and David Heinemeier Hansson, co-founders of 37signals, chat about understanding your customer's needs and motivations. They highlight that your competition isn't always who you think it is, and they discuss ways to position your product to address the customer's actual challenges.

Key Takeaways:

• 00:40 - The habit of the present. What people are already doing?
• 02:19 - A customer's alternative isn't always your direct competitor
• 05:06 - 37signals competition now vs. when the company started
• 06:29 - Being open to something new often requires breaking a habit
• 12:13 - Considering what people are replacing when developing 37signals newest products
• 14:00 - How dogfooding your product helps you figure out what it needs
• 17:33 - Using free trials, 1:1 demos, and group classes to give potential customers experience with your product

Links and Resources:

Jason's post about what your product replaces on X

Basecamp classes with live Q&A

Books by 37signals

Sign up for a 30-day free trial at Basecamp.com

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

@37signals on X

Ever filled out a customer survey? For this conversation, Jason Fried and David Heinemeier Hansson, co-founders of 37signals, share their approach to gathering customer feedback. They discuss the timing and frequency of feedback requests, the power of open-ended questions, and how to transform customer language into effective marketing.

Key Takeaways:

• 00:37 - A single open-ended question can reveal a wealth of valuable insights
• 05:51 - Listen for the language customers use in their feedback for possible marketing opportunities
• 08:42 - Form questions and answer fields that allow customers to use their own words to express what they think
• 14:18 - Focus on organic feedback rather than quantitative metrics

Links and Resources:

Customer feedback on basecamp.com

Books by 37signals

Sign up for a 30-day free trial at Basecamp.com

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

@37signals on X

In this week's episode of The REWORK Podcast, 37signals’ co-founders Jason Fried and David Heinemeier Hansson share their approach to product design, explaining why the first version of a product (V1) is always built for the company's internal use case. They discuss responding to user feedback and the importance of actively using their own products to uncover issues. They also dive into the challenges they've faced when building software for someone else's needs vs. their own.

Key Takeaways:

• 00:35 - The problem with imagined use cases
• 07:21 - A trimmed down V1 gives you permission to focus on what's most important
• 10:28 - The story of Highrise
• 17:27 - “Dogfooding” to help identify and address product issues
• 20:48 - Avoid the temptation to react too quickly to early customer feedback
• 23:11 - Design breakthroughs come to life by creating innovative solutions

Links and Resources:

Version 1 is for you – Jason Fried's HEY World post

Books by 37signals

Sign up for a 30-day free trial at Basecamp.com\

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

@37signals on X

37signals’ co-founders Jason Fried and David Heinemeier Hansson share insights from their write-up, The 37signals Guide to Internal Communication. They discuss effective communication strategies within the company and with the public, offering practical advice to consider when conveying messages.

Key Takeaways:

• 00:41 - The backstory of how the guide was created
• 02:39 - The write up serves as both an internal reminder and a practical manual for how communication is handled at 37signals
• 06:36 - Why publishing doesn’t require perfection
• 10:52 - Poor communication can lead to misunderstandings
• 18:26 - How unclear communication can come across negatively
• 23:03 - Why you shouldn't rush tough conversations 

Links and Resources:

The 37signals Guide to Internal Communication

Books by 37signals

Sign up for a 30-day free trial at Basecamp.com

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

@37signals on X