The Investor's Shelf — one book
Let My People Go Surfing

Let My People Go Surfing

Yvon Chouinard
2005
T2 260 pages · about 4h 20m to read OL16028960Wgoodreads

Patagonia's founder on running a business against conventional growth logic

Summary

Chouinard founded Patagonia and wrote this as both a memoir and a statement of the company's operating philosophies, organised into sections on product design, production, distribution, image, finance, human resources, management and environmental policy.

The business history covers the blacksmithing origins making climbing pitons, the discovery that pitons were damaging rock faces and the decision to discontinue the most profitable product line in favour of removable chocks, the near-bankruptcy in 1991 when growth outran the company's ability to fund it, and the resulting decision to grow only at a rate the company could sustain.

The environmental material covers the switch to organic cotton after discovering the effects of conventional cotton production, the one percent for the planet commitment, and the Common Threads and Don't Buy This Jacket campaigns, which argued against consumption of the company's own products. The management philosophies include hiring people who are passionate about the activities the products serve rather than about business, permitting employees to leave for surf conditions, providing on-site childcare, and deliberately staying private to avoid the growth requirements public ownership imposes.

The book presents a company that succeeded while violating standard business practice, which makes it hard to generalise from. Chouinard's environmental positions cost the company money in ways he documents, and the model depends on a premium brand position and a wealthy customer base. Critics note that a clothing company arguing against consumption remains a clothing company. The 1991 near-failure and the resulting growth discipline is the most transferable part.

Key takeaways 8

  1. Chouinard discontinued the company's most profitable product line after concluding it damaged the rock faces climbers used.
  2. The 1991 near-bankruptcy came from growing faster than the business could fund, and the response was to cap growth at a sustainable rate permanently.
  3. Staying private removed the growth requirements that public ownership imposes and made the environmental commitments financially possible.
  4. Hiring people who use the products for their own activities produces better product decisions than hiring people with relevant business experience.
  5. Product design should aim at durability and multifunction, which reduces total sales volume and increases the price customers will pay.
  6. The switch to organic cotton raised costs substantially and was made because Chouinard concluded conventional production was indefensible.
  7. Telling customers not to buy the product increased sales, which Chouinard treats as a consequence of credibility rather than as a tactic.
  8. Flexible working arrangements including on-site childcare were justified on retention economics rather than on principle alone.

Who should read it

Founders building a values-driven business who want a case where the commitments cost real money and the company survived anyway.

Where it sits in the reference 3

Business models
Secular themes
Industries

Who recommended it 5 · 1 direct

Book Notes & Reviews — nateliason.com
David Cancelreported
Book recommendations listed on their Good Books profile · aggregator only
Book recommendations listed on their Good Books profile · aggregator only
Book recommendations listed on their Good Books profile · aggregator only
Books O'Shaughnessy has recommended on Invest Like the Best and in his newsletter · aggregator only

Similar books 6

Chosen by shared topics, the entries that hold them, and the people who recommended both.

Shoe Dog
Shoe DogPhil Knight
L. L. Bean--The Man and His Company: The Com
L. L. Bean--The Man and His Company: The Complete StoryJames L. Witherell
Doughnut Economics
Doughnut EconomicsKate Raworth
Setting the Table
Setting the TableDanny Meyer
Cannibals with Forks
Cannibals with ForksJohn Elkington
Cradle to Cradle
Cradle to CradleWilliam McDonough, Michael Braungart