REWORK

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 doing02:26 – Focusing on the things within your control06:58 – Analyzing your business' cash cows, dogs, and shooting stars11:21 – Budgeting doesn’t always mean being frugal12:24 – Weighing cost against value16:16 – What the company gained by letting go of a physical office space18:31 – Aesthetics of a well-run, profitable business21:06 – The biggest expenses entrepreneurs often overlookLinks 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 World37signals' meet-up expensesBooks by 37signalsSign up for a 30-day free trial at Basecamp.comHEY World | HEYThe REWORK podcastThe Rework Podcast on YouTubeThe 37signals Dev Blog37signals 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 cloud03:47 – How to prioritize work when managing multiple product lines11:33 – Deciding what problems to tackle first18:49 – The company's take on equity and the structure of their profit-sharing planLinks and Resources:37signals' Employee HandbookBasecamp classes with live Q&ABooks by 37signalsSign up for a 30-day free trial at Basecamp.comHEY World | HEYThe REWORK podcastThe Rework Podcast on YouTubeThe 37signals Dev Blog37signals 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 competitor05:06 - 37signals competition now vs. when the company started06:29 - Being open to something new often requires breaking a habit12:13 - Considering what people are replacing when developing 37signals newest products14:00 - How dogfooding your product helps you figure out what it needs17:33 - Using free trials, 1:1 demos, and group classes to give potential customers experience with your productLinks and Resources:Jason's post about what your product replaces on XBasecamp classes with live Q&ABooks by 37signalsSign up for a 30-day free trial at Basecamp.comHEY World | HEYThe REWORK podcastThe Rework Podcast on YouTubeThe 37signals Dev Blog37signals 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 insights05:51 - Listen for the language customers use in their feedback for possible marketing opportunities08:42 - Form questions and answer fields that allow customers to use their own words to express what they think14:18 - Focus on organic feedback rather than quantitative metricsLinks and Resources:Customer feedback on basecamp.comBooks by 37signalsSign up for a 30-day free trial at Basecamp.comHEY World | HEYThe REWORK podcastThe Rework Podcast on YouTubeThe 37signals Dev Blog37signals on YouTube@37signals on X