In an interview posted recently on Entrepreneur startup page, the founder and CEO of video streaming service provider Zoom Video Communications shared 6 strategies to help him succeed.
Anyone who has known Zoom’s development process knows that its success story and successful IPO do not come from luck. Since Eric Yuan founded Zoom in 2011, the company has overcome difficulties and has steadily taken steps to gradually increase the number of employees to 2,000 with a quarterly turnover of over $ 120 million and reach Market capitalization is over 20 billion USD, and of course, the company is still profitable.
In order for Zoom to achieve today’s success, Eric Yuan Zoom’s role is huge when he is the sole founder and experienced the ups and downs of business with Zoom from the beginning. In an interview with Entrepreneur recently, he shared with 6 important principles for him to build and develop Zoom.
1. Having in-depth expertise in an area
Prior to founding Zoom, Eric Yuan was an acquaintance of video conferencing. He was a founding engineer and vice president of engineering at Webex, the online meeting application company. In short, he had more than 10 years of expertise in this field before starting Zoom.
He said, after Webex was sold to Cisco for more than $ 700 million, Webex employees gradually lost their passion and motivation to promote business development because many former employees of Webex had left and The merger between Cisco and Webex was not successful as expected. From that experience he realized the lesson: “You must continue to strive to bring happiness to customers to control their own destiny.”
With the experience gained from sticking with Webex from the early days, Yuan has accumulated for himself the necessary knowledge about the online video conferencing business. This gave him a great advantage when establishing Zoom, allowing him to overcome common difficulties with early startups.
2. Accept the risk
In 2011, Yuen became one of the key leaders of Webex after being acquired by Cisco. He is the manager of over 800 employees and has a desirable salary. Therefore, when he decided to set up his own company, his wife was quite worried about whether he should quit his job to start something of his own.
Of course, Eric may not be sure whether Zoom can achieve success or not but he knows for sure that his time at Webex has ended. He said every day he talked to his customers at Webex and had to listen to them complaining about dissatisfaction with the company’s services. Those were heavy days and it weighed heavily on his heart. It also helps him to make a definitive decision: Go.
However, in 2011, the market for video conferencing services had a lot of competing businesses and many of his friends advised against starting a company in this area. Still, he was determined to jump in.
He spent most of his time building the startup and realized that the bright spot is that most of the solutions on the market do not provide good products for customers, so how many suppliers are not important problem. And in fact, that’s not a big deal for Zoom, because it has grown steadily and achieved a market capitalization of $ 20 billion when it hit the floor in April 2019.
3. Using lean or economical production methods
Despite having experience running a successful online meeting company and venturing to start Zoom in a competitive market, Yuan was unable to develop Zoom at a set pace without use lean manufacturing methods.
For starters, Yuan is a solitary founder and he sees this as a huge advantage, especially in the early days. He said being a lone founder will allow you to make quick decisions – when you want to get ahead of your big competitors, you need to maximize speed and agility. Only a leader at the highest level allows faster decision making.
Initially, in addition to expanding Zoom himself, Yuan also had a knack for managing money. In the early days, Zoom used office space rather modest. He said, if he spent the money of investors to buy beautiful furniture and unnecessary things … especially since the beginning of the establishment, there will be no real opportunity for business development. .
Every dollar he raises from investors represents their beliefs, so he should follow their expectations. This is the basic principle that helped Yuan to expand Zoom’s scale as it is today.
However, even after growing up, Zoom’s lean philosophy still did not deviate much from the first day. In the words of Yuan, from the beginning and to this day, he wants to maximize the value of investors. Every dollar he raises from investors represents their beliefs, so he should follow their expectations. This is the basic principle that helped Yuan to expand Zoom’s scale as it is today.
4. Customer priority
Another reason Zoom has achieved rapid growth over the past few years is Yuan’s special care for its customers. While many startup founders focus on marketing to advertise their company through campaigns, social media, etc., Yuan, believes that, keep current users of Satisfied firms is the company’s number one growth strategy. “If existing Zoom customers are satisfied, they will recommend our platform to new users through meetings between them or by telling new users about their experience with Zoom”, Yuan said.
5. Ensuring work-life balance
Despite being a busy businessman, Yuan said he regularly plays basketball and bodybuilding with his son. He said he does not go on business often, only once or twice a year. If a client or other person wants to meet him directly he will ask them to work through Zoom first. If that is not good enough, both will meet. In fact, there are about 99 of the 100 Zoom sessions that achieve results. Saving time traveling through Zoom calls gives Yuan time to spend with his children.
6. Be truly passionate
Yuan said his passion is not to make a lot of money but to make his customers happy. His passion is evident in his way of interacting with customers, because he often asks customers to make a direct contribution to Zoom to overcome the problems that customers encounter.
In Yuan’s words, he cares about his customers and their experience with Zoom, so he feels himself having to talk to customers to see if he can help. He is very passionate about his customers, whom he is confident will bring satisfaction to them in the long run.
Passion also helped Yuan, as the CEO of a large public company, to never give up and be able to achieve today’s success.
* Source: BizLive