How Basecamp's CEO Lost 30% of His Team, Faced Backlash, and Came Back Stronger | Jason Fried | E153

Jason Fried didn’t follow the startup rules most founders swear by. He rejected venture capital, refused to chase growth at all costs, and chose to stay small on purpose. What started as a scrappy web design agency turned into Basecamp, a multi-million-dollar business built on profitability, simplicity, and conviction. In this episode, Jason joins Ilana to challenge everything you think you know about scaling a business. He also opens up about how a single leadership decision caused 30% of his company to quit overnight, and how staying principled ultimately made the company stronger. Jason Fried is the co-founder and CEO of 37signals, the company behind Basecamp and HEY. For over 27 years, he has grown Basecamp into a multi-million dollar business without ever taking venture capital or chasing aggressive growth targets. In this episode, Ilana and Jason will discuss: (00:00) Introduction  (03:18) Lessons from Selling Stereo Equipment as a Kid (06:58) Starting 37signals from Scratch (14:13) Pivoting to Software Through Basecamp   (16:41) The Perks of Being a Small Company (27:24) The Policy That Made 30% of the Company Quit  (31:45) Surviving the Backlash and Rebuilding the Team (39:21) Building Thicker Skin as a Leader (42:43) How to Incorporate AI Without Getting Carried Away (45:15) How Basecamp Is Reinventing Itself with Version 5 (48:56) Why Jason Won’t Advise His Younger Self (54:07) Q&A: How to Decide Your Next Career Move Jason Fried is a co-founder and CEO of 37signals, the makers of Basecamp. He is a bestselling author of Rework and It Doesn’t Have to Be Crazy at Work. Known for his contrarian approach to entrepreneurship, Jason emphasizes simplicity, profitability, and long-term thinking. For over 27 years, he has grown Basecamp into a multi-million dollar, fully profitable business without ever taking venture capital or chasing aggressive growth targets. Connect with Jason: LinkedIn: linkedin.com/in/jason-fried  X: https://x.com/jasonfried Resources Mentioned: Jason’s Books:  Rework: https://www.amazon.com/Rework-Jason-Fried/dp/0307463745 It Doesn't Have to Be Crazy at Work: https://www.amazon.com/Doesnt-Have-Be-Crazy-Work/dp/0062874780  37signals’ Website: https://37signals.com  Basecamp’s Website: https://basecamp.com  Leap Academy: Ready to make the LEAP in your career? There is a NEW WAY for professionals to fast-track their careers and leap to bigger opportunities.  Check out our free training today at https://bit.ly/leap--free-training