
39 segments available
Ryan Petersen - https://twitter.com/typesfast - is the founder and CEO of Flexport - https://www.flexport.com/. Flexport is a global freight forwarder powered by software and analytics. They are making international trade easier for over 10,000 companies in 70 countries. They were part of the YC Winter 2014 batch. The YC podcast is hosted by Craig Cannon - https://twitter.com/craigcannon *** Topics 00:00 - What is a freight forwarder? 2:45 - Selling electric scooters on eBay 15 years ago 5:30 - Ryan’s business school experience 10:00 - Amazon competing with their vendors 13:00 - Matt Susk asks - What were the most important takeaways from Columbia Business School? Would you encourage entrepreneurs to pursue a MBA? 16:40 - Tyler Hogge asks - How did you get your first three clients at Flexport? 19:40 - Being a solo founder 22:45 - Varun Khurana asks - What's your strategy for rapidly hiring the best talent in so many different global hubs? 25:30 - Challenges of scaling Flexport 27:15 - Some of Ryan’s favorite books 29:20 - Scaling culture 34:00 - Jassim Ali asks - How has the Trump policy on foreign trade affected your business so far? 39:00 - PowerDecal asks - How do you poach clients from legacy providers? 46:00 - Automation in freight forwarding 49:00 - Jason Yannos asks - If you weren't operating Flexport and had to source a new idea to work on, where would you start? 53:00 - Derisking product ideas 56:30 - Biggest lessons learned at Flexport
Ryan Petersen explains the role of Flexport as a modern freight forwarder, detailing how they help businesses ship cargo globally. He contrasts freight forwarding with parcel shipping, emphasizing the complexities involved in moving freight and how Flexport leverages technology to streamline the process and provide visibility and control for clients.
"the podcast let's start with a brief explanation of what Flex port is because many people might not know what a freight forwarder is yes well a flex board is a freight forwarder first and foremost and..."
Ryan shares his early experiences selling electric scooters on eBay 15 years ago, highlighting the challenges and opportunities of being an early Amazon merchant. He reflects on the evolution of e-commerce and the importance of timing in business success, illustrating how market readiness can impact product viability.
"contextualize this for someone one of our bigger customers is georgia-pacific we also have Sonos as a customer so we ship all the speaker's georgia-pacific is the biggest paper company in the world bu..."
Ryan discusses his decision to attend business school after struggling to make a living from his entrepreneurial ventures. He reflects on his experiences at Columbia Business School, the debt he incurred, and how his unique background as an entrepreneur shaped his perspective compared to his classmates.
"classic Silicon Valley story right where like people find something that's good but not until the market is ready for it will it really take off like it also obviously required smart foreign I think y..."
Ryan talks about the challenges he faced while managing multiple part-time jobs during business school to support himself. He shares insights on balancing time and energy between various projects while pursuing his entrepreneurial ambitions, emphasizing the importance of flexibility and adaptability.
"really had a job might in my life I've worked for Domino's Pizza making pizza when I was fifteen and that's more or less yeah did you graduate with that I did yeah yeah did do you feel that that affec..."
Ryan recounts the inception of Flexport, detailing how his previous experiences and ideas converged to create a platform that simplifies freight forwarding. He discusses the evolution of his business ideas and how they ultimately led to the founding of Flexport, highlighting the importance of iteration in entrepreneurship.
"started a little SEO consulting firm to help businesses with their search engine presence yeah so I had three totally flexible on my scheduled jobs so okay so I've been in experiences like this before..."
Ryan challenges the stereotype of entrepreneurs as high-risk takers, explaining his approach to minimizing risk by validating ideas before fully committing. He emphasizes the importance of gauging market interest and traction before launching new ventures, showcasing a more calculated approach to entrepreneurship.
"and years I'm always doing this I still have some random projects like sock bankruptcy calm so if you run out of socks you just declare socks bankruptcy and we'll send you 50 packs of sighs I mean III..."
Ryan discusses the competitive landscape with Amazon, expressing concerns about their approach to vendor relationships. He highlights the importance of maintaining healthy partnerships with stakeholders and the potential risks of alienating vendors, emphasizing the need for balance in business relationships.
"people want the thing that I'm gonna do yeah in fact that was many years later my first business out of after business school is called import genius comm and it's a search engine for shipping manifes..."
Ryan elaborates on Flexport's mission to empower brands and creators in the e-commerce space, particularly in the face of Amazon's dominance. He discusses the shift towards premium brands and the importance of providing infrastructure that allows businesses to thrive outside of Amazon's ecosystem.
"like what do those companies those partners want you keep all six happy that's the definition of winning nobody loses it's like and it's like you're playing poker you've got and you know everybody's h..."
Ryan answers a question about his key takeaways from Columbia Business School and whether he would recommend an MBA for entrepreneurs. He reflects on the biases against MBAs in the startup community and argues that a solid business education can enhance the skills of a good founder.
"seeing a lot of friends start these I mean they're not necessarily small-scale companies but they're all kind of going for that premium angle right so they're like not selling on Amazon they're sellin..."
In response to a question about his MBA experience, Petersen reflects on the biases against MBAs in the startup community. He argues that while many MBA graduates may not become great founders, those who are already entrepreneurial can benefit significantly from the education, particularly in understanding finance and business fundamentals.
"know of e-commerce let's uh let's do an mba question before we go further into for so matt's us asked what are your important takeaways from Columbia Business School and would you encourage other entr..."
Petersen shares his thoughts on the financial burden of MBA debt, advising potential students to consider their financial situation carefully. He emphasizes the importance of having a solid plan to avoid being constrained by debt, which can limit future opportunities and career choices.
"lent me money that's kind of crappy yeah I mean if you need a kick in two or three grand a month like a lot of people can't start cutting that's a huge amount of money right then so especially yeah af..."
Petersen recounts the pivotal moment when he committed to Flexport after receiving a license from the U.S. Department of Homeland Security. He reflects on the three years of waiting and experimentation that led to the full-time launch of Flexport, highlighting the importance of perseverance in entrepreneurship.
"yeah make my rent and like afford some food then I'd then I buy myself an indefinite period of time to experiment right and so what was the point at which cuz you the idea of flex pork kind of was in ..."
Discussing how Flexport secured its first clients, Petersen reveals that they utilized Google Adwords and SEO to attract sign-ups even before the official launch. He shares anecdotes about landing major clients like Foxconn and Saudi Aramco through a simple marketing page, illustrating the power of validating a business idea before full-scale operations.
"basically the next day right so there is a question then about your first so this from Tyler hoje and yes how did you get your first three clients um the the earliest customers for flex port we got vi..."
Petersen explains how his previous experiences in the freight forwarding industry informed his understanding of its challenges. He discusses the information asymmetry in global trade and how Flexport aims to address these issues through technology, emphasizing the need for transparency and efficiency in logistics.
"oh man this is gonna be a big company I need to get this license oh man that's so sure did you jump the gun and just start emailing them no I did it cuz I was a licensed I was just like an experimenti..."
After receiving the necessary license, Petersen hired developers to build Flexport's platform. He shares insights into the early stages of product development and the importance of having a competent team to bring the vision to life, highlighting the role of technology in transforming the freight forwarding industry.
"companies had the same problem right so when they started signing up I was like oh this is even bigger than I thought yeah but I already kind of knew just from first first-hand experience that this wa..."
Petersen discusses the origins of Flexport, tracing its roots back to a previous business involving shipping manifest data. He reflects on how his brother's entrepreneurial journey influenced his own and how their shared experiences in the industry shaped the development of Flexport.
"it out from there too were you thinking about bringing in your brother and a separate business partner dummy co-founders so my my brother actually and I really like sort of biological analogy analogie..."
Petersen explains his decision to move to Silicon Valley to launch Flexport, emphasizing the advantages of being in a tech-centric environment. He discusses how the location facilitated talent acquisition and access to resources, which are crucial for a technology-driven company.
"in the way okay and so at what point do you guys are you based in New York at that point are you full-on moved to California and I moved to California to start flex port I didn't I and I think that wa..."
Petersen outlines Flexport's approach to hiring talent across its global offices. He describes the qualities they seek in candidates and the decentralized recruiting strategy that allows for flexibility and adaptability in various markets, ensuring they attract the right talent for their diverse needs.
"still true today do you hire most of your engineers here all of them yeah all of them okay because they were there a bunch of questions about you guys being all over the world yeah so just one is a Va..."
Petersen discusses the ongoing challenges Flexport faces as it scales to nearly a thousand employees. He highlights the company's strong product-market fit and the inefficiencies in the logistics industry that create opportunities for growth, emphasizing the importance of innovation in overcoming these challenges.
"that's true for most functions and then culture was do you bring a few people over to start a new office how do you yeah will always said now we try to send eight people to a new office and watch it a..."
Petersen shares insights on the challenges of scaling Flexport to nearly a thousand employees. He highlights the importance of maintaining a strong company culture and effective operations, emphasizing that while demand for their services is high, fulfilling that demand through efficient logistics remains a significant challenge.
"scaling to almost a thousand people the the the core challenges of flex port and they never go away today so we've had epic product market fit since before we even launched right like Saudi Aramco tha..."
Ryan emphasizes the critical role of company culture in Flexport's success. He defines good culture as having engaged team members who derive more value from their work than they put in. He discusses the challenges of measuring engagement and the importance of strong management to foster a positive work environment.
"in all these books I read books I read a book every week at least what's good well my favorite book in the world is called origin of wealth which is a about the evolution and biology and business I ac..."
In this segment, Petersen discusses the complexities of managing a growing team at Flexport. He suggests that an average manager should ideally have around eight direct reports to maintain effective communication and support, highlighting the challenges of scaling culture as the company grows.
"you helped start that or you yes on one room yeah yeah I started a company make I helped to start a company that makes members yeah offices called get room calm although I I named it phone booths calm..."
Ryan reflects on the significance of trade in human history, asserting that it is a fundamental aspect that separates humanity from the animal kingdom. He discusses how trade has lifted millions out of poverty and the ongoing challenges in making it more accessible and efficient.
"many direct reports do you recommend having for an average person average person should not have for the average manager I don't know maybe eight you you want to be able to meet with each of your repo..."
Petersen explains his leadership philosophy at Flexport, which focuses on empowering teams to make decisions rather than relying solely on top-down directives. He believes that attracting smart individuals and allowing them to organize themselves leads to better outcomes and a stronger company culture.
"innate in the human experience is intricately related to the rise of humanity and and nothing in the last 50 years lifted more people out of poverty than the opening of adoption of free-market economi..."
Ryan discusses the effects of recent trade policies on Flexport and its customers. He shares insights on how tariffs have impacted shipments and the importance of being responsive to these changes to support their clients effectively.
"to scale a long term to build a culture right is it like a leader like that so I think my naivete around forwarding actually turned out to be a good thing in the long run because I can focus on cultur..."
In this segment, Petersen explains the seasonal dynamics of air freight pricing, particularly during the holiday season. He highlights how demand fluctuations can lead to significant price increases and the economic principles that govern these changes in the freight market.
"foreign trade affected your business so far yeah it's tough to see our customers get wrapped up in it we've had a lot of it was only about 2% of our shipments were affected by the first round of tarif..."
Ryan Petersen explains the unique dynamics of air freight pricing, highlighting how 50% of air cargo is transported on passenger planes. He discusses the seasonal nature of air freight, particularly around Christmas, and how demand can lead to significant price spikes. This segment delves into the economic principles that govern air freight and the implications for businesses relying on timely shipments.
"said it's like at some point there's a 10x increase on Freight and in particular okay well it's the one of the reason I love this industry is because it is so tied trade is so deep in economics yeah a..."
In this segment, Ryan discusses how Flexport acquired its initial customers and the importance of outbound sales in their business model. He shares insights on how they poach clients from legacy providers by offering better visibility and control over freight logistics. This highlights the competitive landscape of freight forwarding and the strategies employed to attract new clients.
"okay now the moment that that plane is full which which happens every November every October really the planes get full now the price goes to whoever's got the highest marginal value out of that last ..."
Ryan elaborates on Flexport's reliance on outbound sales, revealing that they achieved significant revenue without a dedicated marketing team. He reflects on the lessons learned from this approach and the importance of having a strong sales team to build relationships with potential clients. This segment underscores the critical role of sales in driving business growth in the freight forwarding industry.
"providers and I just in general in terms of your revenue like I'm curious about how how the sales cycle works for you how how it happens yeah so flex port got to two hundred million dollars in revenue..."
In this segment, Ryan discusses the challenges of building trust with clients, especially when transitioning from legacy providers. He emphasizes the importance of demonstrating reliability and providing visibility into the shipping process. This segment highlights the complexities of client relationships in freight forwarding and the need for transparency to foster trust.
"my stuff when is it gonna arrive more data what you've shipped we're the single best view into all the economic activity inside your own company yeah how do you create trust like that in the beginning..."
Ryan shares a pivotal moment when Flexport adapted its product based on client feedback, showcasing the importance of customer-driven development. He recounts how a major client’s request led to significant changes in their user interface, illustrating the value of responsiveness in business. This segment emphasizes the need for flexibility and innovation in meeting client demands.
"anyways let's pull it forward and so we did that for the head of supply chain for a major watchmaker okay and we went down white boarded it with him showed him he white boarded it for us this is what ..."
Ryan discusses Flexport's growth trajectory, revealing that they have surpassed major competitors in the freight forwarding space. He outlines their ambitions to capture a larger market share and the challenges of scaling operations effectively. This segment provides insights into the competitive landscape of freight forwarding and Flexport's strategic goals.
"so it took a couple of months we went back in one is business and then it's kind of like lots and lots of those cycles we won't build custom software for anybody but if your idea is normal is like som..."
In this segment, Ryan explores the potential for automation in the freight forwarding industry, emphasizing the need for better data management and customer interfaces. He discusses how automation can streamline operations and improve efficiency, while also acknowledging the complexities involved. This segment highlights the transformative impact of technology on logistics and supply chain management.
"and if so if they want to go to 20% share and they don't have any technology driving scale and efficiency what you end up with is 600,000 employees and these are knowledge workers these are not these ..."
Ryan shares his approach to identifying new business ideas, emphasizing the importance of recognizing 'schlep blindness'—the tendency to overlook annoying problems. He discusses how he keeps a list of potential solutions to everyday frustrations, illustrating a proactive mindset for entrepreneurship. This segment encourages aspiring entrepreneurs to seek out and address real-world challenges.
"instantly queryable so your customer can get the answer to whatever question they want instantly yeah of like having to find the right expert and talk to them on the phone so do you when you talk abou..."
Ryan discusses the significance of customer feedback in validating business ideas. He reflects on how his initial conversations about the phone booth concept revealed a strong demand for the product. Petersen stresses the importance of talking to potential customers and understanding their needs to ensure that a business idea is viable and has market potential.
"so that I would ask that question what are the problem and so example the office phone booth I think offices are way too loud and I'd get really annoyed by all the people talking and I want a quiet pl..."
In this segment, Ryan shares insights on how to de-risk new business ventures. He advises entrepreneurs to validate their ideas through customer interactions and to avoid relying solely on investor funding. Petersen emphasizes the importance of building a business that can thrive independently of external investment, encouraging founders to seek profitability and sustainability from the outset.
"finding what you know if it's not something that's annoying you you got to really talk to your customers and what's what's annoying you talk to potential customers right and yeah just another like bec..."
Ryan critiques the venture capital model, arguing that it often pressures entrepreneurs to create businesses that require funding rather than those that can succeed independently. He shares his own experience of building successful ventures without initial VC backing, highlighting the importance of focusing on profitability and sustainable growth rather than chasing investment.
"venture whatever it might be and you know you can only do it to such an extent but I'm just wondering if you have Pro tips I it takes some sense like some people have you got to not believe your own B..."
Ryan reflects on the concept of compounding success in entrepreneurship. He explains how small wins can accumulate over time, leading to significant breakthroughs. Petersen draws parallels between financial compounding and the incremental successes in business, advocating for an agile approach that celebrates small achievements as a foundation for future growth.
"and then earn the credibility success compounds like build up you know or use your own money to fund it because and there's plenty of businesses like it started consulting firm to help people with SEO..."
In this concluding segment, Ryan shares key lessons learned from his journey with Flexport. He emphasizes the importance of being agile, celebrating small wins, and ensuring that all stakeholders benefit from the business model. Petersen encourages aspiring entrepreneurs to focus on creating value and to remain adaptable in their approach to building successful ventures.
"all of a sudden the investors align up totally all right do we uh we're almost out of time but you've now been doing flex sport for quite a while we have a lot of early founders that listen to this po..."