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10 Lessons Every Entrepreneur Can Learn From Zappos CEO Tony Hsieh

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Tony Hsieh has successfully built and sold not one, but two companies. Link Exchange sold for $265 million to Microsoft and online shoe retailer Zappos.com sold for $1.2 billion to Amazon.

Here are the 10 lessons that every entrepreneur can learn from Tony Hsieh, the CEO of “Zappos”, which is consistently voted one of the best places to work for and has a reputation for outstanding customer service.

 

Entrepreneur Lesson’s From Zappos CEO, “Tony Hsieh” 

Lesson #1: Being Passionate Increases Your Chance Of Success

If you want to be successful then you need to find something that you are passionate about. A lot of entrepreneurs are too caught up with the money that they can make. However this can actually hinder their chances of finding success. As Tony says “business that are run by people who are passionate about whatever the business is about tend to have a much higher” When you are passionate about something you are able to work harder and inspire others to do the same. When faced with adversity you will have the passion to keep going.

 

Lesson #2: Understand What Really Motivates People

In Daniel Pinks best-selling book “Drive: The Surprising Truth About What Motivates Us” He talks about how direct rewards such as bonuses or increased salaries can actually reduce productivity for many types of work. He also suggests that intrinsic factors such as being inspired by your work are actually much more important for motivation. Tony Hsieh illustrates this principle perfectly with his mission to create a company that you would want to work at even if you weren’t being paid to be there.

Zappos actually offers their new hires $4,000 to quit. Only about 3% have so far taken the money since the program was started. This concept was designed to weed out those who are only in it for the money and not in pursuit of a place where they can be part of a great working culture.

 

Lesson #3: Learn From Your Mistakes

Building and selling Link Exchange for $265 million might seem like the kind of mistake that any entrepreneur would be happy to make but Tony has stated he was not happy with his first company. The mistake he made was to try and build a company culture too late. With Zappos he didn’t want to make the same mistake and established the company culture at the very beginning.

 

Lesson #4: Focus on the Customer not the Product

Many entrepreneurs become so focused on the product or service that they are offering that they end up forgetting about their customer. Tony Hsieh wants to be known not as the best online shoe retailer but as the company with the best customer service. He has stated that he is actually not that passionate about shoes but providing the best customer service is something that inspires him.

 

Lesson #5: Talk To Your Employees

While we may understand that making our employees happy will increase their productivity how we achieve this can sometimes seem unclear. However Tony offers a simple prescription – “just talk to your employees. Ask them what would make them happy” Asking your employees what would make them happy and then giving it to them might sound simple but as Zappos has shown it can be incredibly effective. This includes ideas such as the laughing yoga classes, a full-time life coach and free lunches.

 

Lesson #6: Company Values Are Not Just Empty Slogans

Zappos has what are known as its 10 commitable core values. However these are much more than empty slogans. They guide the company in all decisions that are made on both a strategic and day-to-day level. An employees success in the company is directly related to how the live up to these core values. If they are failing to meet them then this is grounds for being fired.

 

Lesson #7: Support Your Staff

At Zappos, provided you are working according to the companies stated values then you will be fully supported. A lot of companies like to talk about integrity or customer service but fail to back their employees. A good example of this is a customer support call at Zappos that took over 7 hours. In many companies spending a whole work day over a relatively small order would be viewed as incredibly unproductive. However at Zappos this kind of customer service is celebrated.

 

Lesson #8: Understand What Makes You Happy

Tony Hsieh was running his own venture capital business when he initially invested in Zappos. At the time it was just one investment among many. However Tony realized within a year that what he really enjoyed in business was operating fledgling businesses not just being an investor in them.

 

Lesson #9: See Yourself As An Enabler

A desire to micro manage is something that many entrepreneurs find it difficult to avoid. However Tony Hsieh believes that the primary purpose of an entrepreneur is to enable people to do their best work. Tony also knows what it is like to be stifled by corporate culture. He quit his first job at Oracle after only five months. At Zappos he intended to create an environment which allows people to realize their full potential.

 

Lesson #10: Relationships Big or Small, Can Build Opportunity

Tony tells the story of a lesson that he learned from one of his business partners Fred Mossler. During a shoe show Mossler invited a rep for a very small brand out to dinner, rather than a rep from one of the larger brands they where introduced to. While the brand contributed almost nothing to Zappos bottom line, the relationship was something Fred Mossler truly valued. That rep would shortly there after go onto become the president of a company that Zappos had been trying to acquire. If Mossler had been concentrating on immediate gain rather than the relationship then the opportunity would have been lost.

Article By: Jonathan Savage | Addicted2Success.com

I am the the Founder of Addicted2Success.com and I am so grateful you're here to be part of this awesome community. I love connecting with people who have a passion for Entrepreneurship, Self Development & Achieving Success. I started this website with the intention of educating and inspiring likeminded people to always strive for success no matter what their circumstances. I'm proud to say through my podcast and through this website we have impacted over 200 million lives in the last 10 years.

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Success Advice

11 Mark Manson Lessons That’ll Redefine Success in the Digital Age

Success in the digital age isn’t about hacks, it’s about the raw, real lessons Mark Manson actually lives by.

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In 2016, Mark Manson released The Subtle Art of Not Giving a F*ck, a brutally honest, thought-provoking book that redefined self-help for a new generation. (more…)

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Change Your Mindset

The Secret Daily Routines Behind History’s Most Brilliant Thinkers

Uncover the daily rituals and hidden habits that powered history’s most brilliant minds to success.

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Why Daily Rituals Matter

Every great achiever has one thing in common: discipline. Behind the novels, inventions, discoveries, and masterpieces are small, consistent habits repeated daily. (more…)

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Did You Know

How to Turn a Simple Link-in-Bio Into a Powerful Brand Hub

Transform your forgotten bio link into a high-impact gateway that fuels engagement, clicks, and conversions across every social platform.

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Social media is one of the greatest marketing tools in 2025. According to a recent study, some 86% of marketers globally use platforms like Facebook and Instagram for advertisements, while 94% use it for content distribution.  (more…)

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Personal Development

These 11 Habits Will Make You More Productive, Successful, and Confident

Boost your focus, confidence, and results with 11 powerful habits successful people use every day.

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Successful people love to help beginners. They have an incredible work ethic and rarely complain. As a result, others naturally look up to them and want to follow in their footsteps.

But here’s the truth: there’s no success without sacrifice. You’ll need to give up comfort, excuses, and sometimes even social approval to accomplish your goals.

Value comes from solving problems, and these 11 powerful tips will help you become more productive, successful, and confident, starting today.

1. Take Short Breaks After Finishing a Task

Psychology shows it’s important to reward positive behaviour.

After completing a big task or finishing a book, take five minutes to walk, stretch, or simply breathe. This quick reset helps your brain recharge and strengthens focus.

Many great writers swear by morning walks, solitude, and reflection can unlock creativity.

But if you refuse to take breaks, don’t be surprised when burnout hits. Your brain needs recovery time just as much as your body does.

2. Schedule Your Most Important Tasks First

Multitasking kills productivity. If you want to get more done, try time blocking, a method where you dedicate set periods for specific tasks.

Productivity expert Caitlin Hughes explains, “Time blocking involves scheduling blocks of time for your tasks throughout the day.”

For example, if you’re a writer:

  • Research your topic at night.

  • Write your first draft in the morning (don’t worry if it’s rough).

  • Edit in the afternoon, great writing comes from rewriting.

You can’t buy more time. Use it intentionally and without regret.

3. Eliminate Distractions from Your Workspace

Focus is the foundation of success.

According to Inc. Magazine, it takes an average of 23 minutes to recover from a distraction. That’s nearly half an hour of lost productivity every time you check your phone.

Put your phone away. Close unnecessary tabs. And yes, limit your Netflix binges.

Meeting deadlines consistently is one of the fastest ways to stand out and earn respect.

4. Take Full Responsibility for Your Life

Entrepreneur Derek Sivers once said, “Everything is my fault.”

This mindset doesn’t mean self-blame; it means self-ownership. Stop pointing fingers, making excuses, or waiting for others to change.

If your habits (like smoking or drinking too much) hold you back, it’s time to make better choices. Your friends can’t live your dreams for you; only you can.

5. Invest an Hour a Day in Learning New Skills

Knowledge compounds over time.

Whether you read books, take online courses, or practise a craft, consistent learning gives you a competitive edge.

I used to struggle with academic writing, but I improved by studying the work of great authors and applying what I learned.

Your past doesn’t define you; your actions do. Every new skill adds another tool to your arsenal and makes you more unstoppable.

6. Develop a Growth Mindset

Psychologist Dr. Carol Dweck introduced the concept of fixed vs. growth mindset.

  • A fixed mindset believes success is based on natural talent.

  • A growth mindset believes success comes from effort and learning.

Choose the growth mindset. Embrace challenges. See failures as feedback. In today’s fast-moving digital world, adaptability is your biggest advantage.

7. Learn Marketing to Reach People Who Need You

I once believed marketing was manipulative, until I realised it’s about helping people solve problems.

If your work provides genuine value, marketing is how you let others know it exists. Even Apple spends billions on it.

Don’t be ashamed to promote your skills or business. Without visibility, your ideas will never reach the people who need them most.

Creative professionals who understand marketing and sales have an unfair advantage.

8. Ask Your Mentor the Right Questions

Good mentors can fast-track your growth.

While mentorship often costs money, it’s one of the best investments you can make. Great mentors don’t care about titles; they care about your progress.

If you don’t have access to a mentor yet, books are your silent mentors. Read the best in your field, take notes, and apply what resonates.

9. Build Confidence Through Action, Not Affirmations

Author Ryan Holiday once said, “I don’t believe in myself. I have evidence.”

Confidence doesn’t come from shouting affirmations into the mirror; it comes from proof. Doing hard things, keeping promises to yourself, and following through.

When you consistently take action, your brain gathers evidence that you can handle whatever comes next. That’s real confidence, grounded, earned, and unshakable.

10. Focus on Your Strengths

Your strengths reveal where your greatest impact lies.

If people compliment you on something often, it’s a clue. Lean into it.

A former professor once told me I was creative, and that simple comment gave me the confidence to go all in. I studied creativity, applied it daily, and turned it into my career advantage.

Double down on your strengths. That’s how you build momentum and mastery.

11. Identify and Challenge Your Limiting Beliefs

Your beliefs shape your reality.

For years, I believed I couldn’t be a great writer because of my chronic tinnitus and astigmatism, sensory challenges that made concentration difficult. But over time, I realised those struggles made me more disciplined, observant, and empathetic.

Your limitations can become your greatest motivators if you let them.

Avoid shortcuts. Growth takes time, but it’s always worth it.

Final Thoughts

Becoming productive, successful, and confident isn’t about working harder than everyone else. It’s about working smarter, consistently, and intentionally.

You don’t need to overhaul your life overnight. Start small: take a break after your next task, schedule your priorities, or spend one hour learning something new.

Every habit you change compounds into long-term success. Remember, true change comes from practising new behaviours.

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