In this episode of 20 Minutes VC, host Harry Stebbings interviews Harley Finkelstein, COO of Shopify, an e-commerce platform that has empowered a generation to embrace entrepreneurship. Harley shares his journey from a Shopify merchant to a pivotal executive, driving the company's growth from $5 million to over $600 million in revenue. He discusses the evolution of retail from transactional to experiential, the importance of omni-commerce, and the shift in brand perception through direct consumer engagement. Additionally, Harley reflects on the significance of Shopify's IPO and the company's focus on being a trusted public entity by consistently delivering on promises. He emphasizes the value of management skills and looks forward to shaping the future of commerce while personally striving to be an exemplary manager.
"I'm thrilled to welcome Harley Finkelstein to the show's day. Now, Harley is the COO at Shopify, the ecommerce platform that's allowed a generation of people to become entrepreneurs and business owners."
This quote introduces Harley Finkelstein, COO of Shopify, and underscores the impact of Shopify on entrepreneurship.
"Eight is a sleep innovation company with their latest product, the eight smart mattress... And if you use the promo code 20 vc, you'll get a whopping 20% discount."
Harry promotes Eight's smart mattress and offers a discount code, highlighting the product's features and benefits for productivity and health.
"With full contact. They provide the ability to organize your contacts, gain rich insights into them, and therefore build deep relationships."
Harry discusses the advantages of using FullContact for managing and engaging with contacts, emphasizing its value in relationship building.
"I've been an entrepreneur for most of my life. I became an entrepreneur when I was 13 years old... And that obviously was a little bit of a gimmick."
Harley shares his early start in entrepreneurship and his mindset towards building businesses.
"It teaches you how to write really well, which of course is really important when you're running a company. It teaches you how to be articulate and teaches you how to read 4000 pages. But select the one line that's most relevant."
Harley explains the valuable skills he gained from law school that are applicable to entrepreneurship.
"When I moved to Ottawa, I didn't really have any friends or family here... But I did hear about a group of people that started hanging out at this local coffee shop every Friday night."
Harley describes his introduction to the entrepreneurial community in Ottawa and meeting Toby, which eventually led to his involvement with Shopify.
"I ended up signing up for Shopify as one of their first customers... And I became an early merchant on Shopify's and spent the next couple of years finishing a law degree in an MBA while selling t shirts online."
Harley shares his experience as an early adopter of Shopify and how he balanced his education with entrepreneurship.
"The law firm culture was very much about legacy. No matter how long you've been there, who you knew, who your parents were, what golf club you went to. And it was the antithesis of everything that I loved about entrepreneurship."
This quote highlights the stark difference between the traditional, hierarchical culture of law firms and the dynamic, merit-based world of entrepreneurship that Harley Finkelstein appreciates.
"We believe product comes first and having a great product revenue follows after that."
This quote encapsulates Shopify's philosophy that by focusing on creating a superior product tailored to the needs of entrepreneurs, financial success will naturally follow.
"We felt very passionately that the future retail is likely retail everywhere."
This quote reveals Shopify's foresight in recognizing the importance of a seamless retail experience across various platforms and channels, which has been a key factor in their growth.
"I think physical retail is probably going through its largest shift, and part of it is that there's a couple of big macro trends happening here."
This quote acknowledges the transformative period that physical retail is experiencing, with Shopify positioned to support retailers through this evolution by offering tools that facilitate both online and offline consumer engagement.
"I, and I think many others are now, a lot of us prefer to go direct to consumer because I get a better experience of the consumer."
This quote emphasizes the consumer preference for a direct relationship with the product creators for a better overall experience.
"Boosted board can now make more money because whatever I pay goes directly to them."
Here, the speaker highlights how manufacturers can increase their profit margins by selling directly to consumers without third-party retailers.
"Brick and mortar retailers need to find another way to add value in the chain from the manufacturer to the consumer and if they provide a great in store experience."
This quote suggests that physical retailers must innovate and provide exceptional in-store experiences to remain relevant in the D2C era.
"It's commoditized now, and the Internet did that."
The speaker is indicating that the internet has made distribution a commodity, diminishing the unique value once provided by physical retail stores.
"Brand is what people think about when they hear the word, for me, at least."
The speaker defines brand as the thoughts and associations that come to mind when a brand name is mentioned.
"Drake has created a brand of clothing that I think rivals any major clothing brands."
This quote illustrates how individuals can leverage their personal brand to create products that compete with established companies.
"We want to build a 100 year company. And at some point, being a publicly traded business, it makes it easier to be a long term company."
The speaker explains that going public was part of Shopify's strategy to establish itself as a long-term, sustainable business.
"Trust is built on consistency and doing what we say time and time again."
Here, the speaker outlines the importance of consistency and reliability in building trust as a public company.
"I think we took for granted people's understanding of our business, and so we really had to spend a lot of time."
This quote acknowledges the need for clear communication about the company's business model to investors who may not be familiar with it.
"We actually created a real documentary to tell the story of Shopify." "We are marketplace. How do we function?" "It was important that we told the story really well, so we tried to do that."
These quotes emphasize the importance of storytelling in business and how Shopify used a documentary to clarify their purpose and operations to a broader audience, especially during a pivotal moment like an IPO.
"I don't think it matters where you're based." "People come to Shopify to do their life's work, and they stay here for a very long time."
Harley Finkelstein highlights the geographic flexibility of modern tech companies and the value of a dedicated and stable workforce, which they have found in Canada.
"I'm not a massive fan of all business books." "High Output Management to me is sort of in a category of its own."
Harley shares his preference for books that offer unique and lasting business wisdom, highlighting "High Output Management" as a standout resource.
"Figuring out what I'm good at and what I'm not good at." "Management is something that is really, really tough."
The quote reflects Harley's journey of self-awareness and professional development, particularly in the realm of management, which he views as a challenging but important skill to master.
"I think what's amazing about medium is that I'm able to sort of peruse all different types of categories." "I find that just so compelling."
Harley expresses his appreciation for Medium's diverse content and singles out "Wait But Why" for its compelling writing and thorough research.
"We have about 400,000 stores on our platform." "I love when that happens. I love when I have a great online experience, even a great in store experience, and I see it's Shopify point of sale, or I see it's an online store powered by Shopify."
Harley shares his enthusiasm for the range of businesses on Shopify and the joy of encountering Shopify's impact in real-world shopping experiences.
"We're just going to continue to think about the future of retail and future of commerce and build for that." "I'm trying to become the best manager that the people that work with me have ever had."
These quotes outline Shopify's strategic vision for adapting to evolving commerce channels and Harley's personal commitment to managerial excellence.
"Thanks Harry, appreciate having me on." "It's been so much fun. So thank you so much for joining me." "And again, a big thank you to idin at Felicis for making the introduction, without which this episode would not have been possible."
The conclusion wraps up the interview with expressions of gratitude and mutual appreciation, along with a nod to the individuals and companies that made the podcast episode possible.