Shoe Dog by Phil Knight, published in 2016, is the memoir of the man who founded Nike. Knight tells the story from 1962, when he was a young business school graduate with an idea to import cheap, high-quality running shoes from Japan, to 1980, when the company went public. It is one of the most readable founder memoirs in print, and it is honest about how close Nike came to failure again and again.
What is Shoe Dog about?
The book opens with Knight as a runner and recent graduate who travels to Japan and talks his way into a deal to sell Onitsuka Tiger shoes in the United States. He sells them from the boot of his car at track meets and teams up with his old University of Oregon coach, Bill Bowerman, who becomes his partner. Together they start Blue Ribbon Sports, the company that later becomes Nike.
Most of the book is a year-by-year account of growth under pressure. Sales keep rising, but the company is always short of cash because every dollar goes into the next order. Banks lose patience, and a Japanese trading company becomes the lender that keeps Blue Ribbon alive. The relationship with Onitsuka breaks down, which pushes Knight to create his own brand. Along the way come the swoosh logo, the waffle sole that Bowerman invents on his wife’s kitchen waffle iron, a legal fight with Onitsuka and a crushing customs bill from the US government.
Knight also writes about the people. His first employees were an odd group of former athletes and misfits, and he credits them for the company’s survival. He is frank about his own failings as a husband and father, and the book closes with personal reflections that go beyond business.
What are the main lessons for founders?
- Watch your cash as closely as your sales. Nike grew fast and was still close to collapse for years. Plan working capital as carefully as you plan revenue.
- Never rely on a single supplier. Knight’s dependence on Onitsuka nearly ended the company. Line up a second source before you need it.
- Hire for commitment. The early Nike team was unusual and fiercely loyal. Look for people who care about the mission and give them room to work.
- Find financing partners who believe in you. When banks walked away, a trading company with a long view stepped in. Seek lenders and investors who understand your industry.
- Keep going through the dark years. Knight’s story covers almost two decades of uncertainty before the company went public. Patience is part of the job.
Who should read Shoe Dog?
Founders of consumer brands, manufacturers and importers who deal with suppliers, inventory and cash flow. It is also an inspiring read for any founder going through a hard patch, since almost every chapter contains a crisis. People who prefer stories to frameworks will enjoy it most.
Founders looking for a modern playbook on digital marketing or venture funding can skip it. The tactics belong to the 1960s and 1970s, and the value lies in the mindset and the cautionary tales.
How do you put Shoe Dog to work this week?
- Build a 12-month cash flow forecast and mark the month when growth would leave you short of cash.
- List every supplier or partner you depend on and name a backup for the most important one.
- Write down why you started your company in a few lines, and keep it where you will see it on bad days.
For a clear view of funding options before your next cash crunch, take the free Investor Playbook module in the F/MS Startup School.
Where does Shoe Dog fall short?
The memoir stops in 1980, so it skips the years when Nike faced heavy criticism over working conditions in the overseas factories that made its products. Knight touches on the subject only briefly in the closing pages. The story is told entirely from his point of view, and women appear mostly as wives and assistants rather than as business figures. Readers also get little practical detail they can copy today. For a founder memoir that puts values and responsibility at the centre, read Let My People Go Surfing.