Faire's Near-Death Experience How a $12 Billion Startup Avoided Disaster

Hubris and the Billion Dollar Blind Spot

Right so reading about Faire's near miss it's like watching a replay of a close cricket match. You see the mistakes the near run outs and think 'Could've been me'. Max Rhodes the CEO talks about hubris – that's a big word for overconfidence right? They went from a billion dollar valuation to twelve billion in like a blink. Suddenly it felt like they could hit every ball out of the park. It's easy to lose your way when the crowd's roaring. But as I always say 'You have to respect the game'. No matter how good you are there's always a bouncer coming your way. Gotta stay grounded.

Red Flags Waving Wildly

Rhodes found that retention was dropping. Customers didn't even know what Faire was. The website had slowed down. It's like when you are playing on a bad pitch. You know something is not right and it is time to change it and adapt. That is why it is important to always review and reassess your strategy if you want to stay on top. Talking about staying on top did you read the article Sky High Airfare Get Ready to Pay More to Fly? Turns out even flying can get expensive if you don't see the red flags early.

The Painful but Necessary Reset

Cutting costs reducing staff – nobody enjoys that. It's like declaring an innings early when you know the pitch is going to get worse. It's a tough call but sometimes you gotta do it for the long game. Rhodes was worried about what people would think. 'The shine had gone off the company' he said. But you know what? Sometimes losing a bit of shine is what polishes you up for the future. It is about doing the right thing.

Staying Rooted in Your Principles

Rhodes says they got back to their North Star: serving their community and helping customers succeed. That's the key isn't it? Whether you're running a business or facing a bowler at 150 kph you gotta know why you're doing it. For me it's always been about the fans the team and the love of the game. If you lose sight of that you're just swinging blindly.

Advice from the Trenches

Check your cognitive biases Rhodes says. Don't feel invincible. 'Success can be dangerous'. True words. And listen to your board your advisors. Have people who can give you a reality check. It is important to have the right people in your corner even when you think you know all the answers. You are never too good to listen and learn.

The Comeback Kid

Faire's revenue is growing again. Customer retention is up. They're projecting to break even soon. It's like hitting a century after a string of low scores. Shows resilience grit and a bit of luck maybe. As for Faire they've learned a valuable lesson. And me? Well I'm just happy to share a bit of what I have learned along the way too.