Sitting outside on a Tuesday night we awaited for a hookah to be setup upon our table. The night was a typical January Miami night which permeates in the transition of northern fronts that bring a push of colder winds, allowing the sunshine state to have a somewhat “chilly” winter. Another friend arrived at the scene from a visit from the ATM and that’s when I made my sporadic move to approach the inside bar. I had applied for work at that place before, through a walk in hit and run (quick word and leave of a resume).
So now there again, I asked the co-owner how business was going; because it’s what I usually do. After a look around from his response, I understood that I never got a call back for the position applied for, because he could deal with his business along his family members just fine. I looked around the place, built an idea and shared my creative view on how much potential I saw on his location.
Stretching the fact that maybe some inclusion of social strategy within the avant garde tech setup he had, might increase the visits of his place. He responded immediately with a I don’t think investment on technology further than what I already have is going to make a big dent on sales, but Yelp we have added to our investment portfolio last week. I smiled and realized that the giant’s reach is naturally worth engaging in. After a while I went outside for a drink with my friends, and as we waited for the hookah to arrive the night went by.
Why they succeed
Now that I have some breathing room, to break down the outstanding business we popularly know as Yelp; the key to the structural perspective of what I humbly consider an economic Phenomenon; was based on a truly applicable investment model that dominated the field of success, growth and employment, during the first shared world recession of our century, trough the significance opted on value in the worth of small businesses survival.
Yelp’s reality, is what we may consider to be an admirable principle of genuine business, and it leads me to believe that statistics, (Most volatile recession cycle to leave a mark on recent measurable time) can’t hold down a company that forms a solid structure on the delivery of a service which embraces from their get go, a key to component of their focus on the success of every connecting link at their conformities union.
The Comparative vantage upon their growth was in their ability to engineer a composite strength to invest during adversity, taking the highest risk route alongside the weapon of their consistency on quality within their strategy; of placement in value on the need to move activity towards the social stimulus, of the engaging importance, the appreciative tradeoff component of service provider/client have in the review of none other than the clients; engaged in the search of quality they have yet not experienced.
This design on incentives, upon the belief within local range, had a proactive natural impulse towards dynamism, in the available business resources and their quality at which they engaged on delivery of their service improvement; generating return business.
This led to a byproduct of immeasurable yields on revenue, one form of this return within Yelp and their branches (a.k.a every business that serves efficiently within their site) was the main feature of Yelp’s initial guide, personalized reviews from experienced customers (and please remember the economic decline we have been struggling to get away from, as this was happening) trough their implemented social sharing platform.
The effects were logically a reflection of what would allow mom and pop shops or the back bone of the classic American economic system; to participate in competition for clients that searched for the best of the best economical rationalization (savings and quality vs costs) way to spend, when there was no optimistic future on near economic forecasts.
Similar models of success
Giants have not grown to be because of fortune, although that word might include what they have obtained trough success; it does not define the general pattern of a business that today may on distant future posses what it builds its wealth upon.
Google, for example, amply acknowledged that the service of communication is in essence a sector of our economy by itself; without distancing ourselves into the diagram constitution of our economic skeleton; they give solutions trough service at an open stance. We also know that energy is the source of capital that allows movement in Economics.
Yelp put two sectors together, within a local range, supplied a push on demand on efficient supply’s mechanism start up, representing the standards of achievement trough persistence, intellect and America values of our present day, where as globalized reach, overheating and excessive spending might have shifted the logarithm of historical cycles or what we now respect within them.
How they did it
Target essence of their business structure model, inclines to cover an optimal business solution for an engaging unit of one hundred million unique visitors per month. Their success is easy to talk about because it has marked a difference within the titans that sustain its platform reach.
Both Google and Yahoo have invested interest in the acquisition of the company, however it has been amazing how reliance to believe in the company leads CEO and cofounder Jeremy Stoppelman to invest in desisting offers, hence adding value to his companies overwhelming leadership at what they do.
It all started in San Francisco where Jeremy, was Vp of tech at PAYPAL, soon enough that company was acquired by eBay, where his friend Max Levchin, soviet investor and successful entrepreneur, provided for his college friend, enough funding to develop a concept for success in the times that where transpiring.
Jeremy and Russell Simon another colleague of their creative team came up with Yelp, trough an idea of substituting search availability within the industry on targeted connection between the local needs and their best suppliers.
Jeremy was searching for a doctor, and he found a way to make a better connection on the relationship buildup between the solution and the search of what was needed for his local community demands.
As time and presence grew in their region, the solidification of their reach, expanded towards neighboring communities and as soon as the platform outgrew its city limits, it became ready to take the leap towards other prominent states.
Arriving at New York and Chicago was a success of their rapid growth. The take over allowed future investment on their strategy to apply implementation on the whole territory within the nation, as well as the now present international expansion under constant growth.