Why FreshBooks Launched a Competitor to Itself

After realizing his accounting and invoicing company FreshBooks wasn't innovating fast enough, Mike McDerment had to take extreme measures.
Why FreshBooks Launched a Competitor to Itself
Image credit: FreshBooks
Entrepreneur Staff
Editor-in-Chief
1 min read

This is an episode of our podcast Problem Solvers. Each week, an entrepreneur reveals how they overcame an unexpected problem in their business -- and were happier and more successful as a result. The show is hosted by Entrepreneur’s editor in chief, Jason Feifer. Listen below, or subscribe on iTunesGoogle PlayStitcher, or wherever you get your podcasts.

Mike McDerment saw the future, and it wasn’t bright. His accounting and invoicing company, FreshBooks, was doing well with customers, but behind the scenes, its software code was a mess, and it wasn’t able to innovate as quickly as it needed. But fixing this problem was tricky. If he ordered his team to hit pause and fix the code, years could go by and Freshbooks would lose ground to its competitors. And if his team did manage to create a better Freshbooks in the process, customers might be annoyed by the sudden change. So his solution was radical: He launched a competitor to his own company.

Listen to this week's Problem Solvers to see how McDerment did it and what he learned along the way.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur