Grasshopper's Journey: An Interview with David Hauser

This article is an interview with David Hauser, founder of Grasshopper, a successful business phone system company that was recently acquired by Citrix. The interview provides valuable insights on how Grasshopper grew from a fledgling startup to a powerhouse with over 150,000 customers.

• The interview covers key topics like advertising, marketing, hiring, and building a strong business culture.
• David shares his experiences and lessons learned about bootstrapping a business, finding the right advertising channels, and developing a strong brand identity.
• The article also touches upon David's thoughts on work-life balance, the importance of core values, and the transition of selling his company to Citrix.

A Childhood Lesson in Business

David's entrepreneurial journey began early in his life. His father taught him the value of hard work and resourcefulness, instilling the importance of not expecting handouts.

• When young David wanted a Dell computer for his web design business, his father refused to buy it outright.
• Instead, he offered to loan him the money, emphasizing the responsibility of earning and repaying.
• This early lesson shaped David's entrepreneurial spirit and his approach to building Grasshopper.

Applying his Father’s Lesson to Grasshopper

David and his co-founder, Siamak Taghaddos, started Grasshopper with limited resources. They had to be creative and resourceful to secure funding and build their infrastructure.

• They learned to sell their vision to suppliers, convincing them to invest in their company, even with limited capital.
• They leveraged their "hustler mentality" to negotiate favorable terms with vendors.
• Their strategy involved focusing on smaller companies and pitching a compelling story of growth and loyalty.

Getting the Story Right

David and Siamak initially focused on a niche market, targeting those seeking a "Virtual PBX" solution.

• Over time, they expanded their advertising and marketing efforts to target a broader audience, using keywords like "virtual phone system", "virtual phone number", and eventually, simply "phone numbers".
• They realized that their core purpose was to empower entrepreneurs, a message that resonated with their target audience.
• By highlighting their "entrepreneur story" in their advertising and marketing materials, they saw a significant increase in conversions.

From 0 to 150,000 Customers

Grasshopper's initial growth was driven by a combination of targeted advertising on AdWords, word-of-mouth marketing, and exceptional customer support.

• They generated primary demand for their product through advertising, educating the market about the value of their solution.
• Word-of-mouth referrals played a significant role in attracting new customers, accounting for nearly 30% of their growth.
• They prioritize 24/7 in-house customer support, building trust and loyalty among their customers.

Not Wasting Time Going After TechCrunch

David believes that many startups waste time chasing press coverage from publications like TechCrunch.

• He emphasizes the importance of focusing on advertising channels that reach the target audience.
• While press coverage can provide some SEO benefits, it doesn't necessarily translate into significant sales growth.
• He advocates for a more strategic approach to advertising, prioritizing channels that drive tangible results.

Reinventing GotVMail

In 2009, the company changed its name from GotVMail to Grasshopper, a strategic decision to create a more memorable and easy-to-use brand.

• The original name, GotVMail, was difficult to spell and remember, hindering their advertising efforts.
• They aimed for a name that could be used as a verb, like "to Google," making it more memorable and accessible.
• The name "Grasshopper" is easy to spell and recall, with a positive connotation that aligned with their brand identity.

How Grasshopper Hires Entrepreneurial Employees

One of Grasshopper's core values is "Always Entrepreneurial." This value drives their hiring process and shapes their company culture.

• They prioritize finding employees with inherent entrepreneurial qualities, emphasizing creativity, resourcefulness, and a willingness to take calculated risks.
• They believe that core values are not easily trained, so they focus on identifying individuals who already align with their values.
• Their hiring process emphasizes finding individuals who demonstrate entrepreneurial traits through their past experiences and actions.

Why Work/Life Balance Is Bullshit

David believes that "work/life balance" is a misleading concept and advocates for "integration," where work and personal life are combined in a way that brings fulfillment and happiness.

• He emphasizes the importance of prioritizing health and well-being, including exercise and a structured routine.
• He recommends waking up earlier to gain extra time and improve productivity, creating a more flexible and fulfilling work-life integration.
• His approach to productivity emphasizes integrating work into personal activities, allowing for greater flexibility and personal fulfillment.

The End of An Era

The acquisition of Grasshopper by Citrix was a well-thought-out decision based on shared values, growth potential, and a commitment to maintaining the brand's integrity.

• David emphasizes the importance of finding a buyer that aligns with their core values and will continue to grow the business.
• The acquisition represents a significant milestone for Grasshopper, marking the culmination of years of hard work and dedication.
• David acknowledges the bittersweet nature of the sale, expressing both excitement for the company's future and a sense of nostalgia for their entrepreneurial journey.

David’s Required Reading

David shares his recommended reading list for entrepreneurs, highlighting books that have influenced his entrepreneurial journey.

• This list provides valuable insights into the books and resources that have shaped David's entrepreneurial mindset.
• The reading list reflects David's focus on personal growth, strategic thinking, and understanding the dynamics of business.
• His recommendations offer a roadmap for entrepreneurs looking to learn from successful leaders in the field.