Over 20 years ago, Tobi Lütke’s passion for snowboarding inspired him to start an online store selling snowboarding gear. He called his business Snowdevil but faced early hurdles, including having to send notarized passport copies to American Fork, Utah, to obtain the API keys needed for credit card payments.
Instead of being discouraged, Tobi found the process intriguing and realized that many others might be facing similar struggles in building their own online businesses. “The software I created for myself worked really well. Maybe others could benefit from it too,” he says, which eventually led to the creation of Shopify.
Much has evolved since the days of Snowdevil. To mark Shopify’s 20th anniversary, Tobi sat down with Shopify Masters to reflect on his entrepreneurial journey and offer valuable advice for new business owners navigating today’s competitive market.
Turn Your Passion Into a Business
Although online selling is much simpler today compared to Tobi’s early days, new entrepreneurs still face obstacles when launching their ventures. If taking the first step feels intimidating, Tobi recommends using your personal passions as a source of motivation. “The key is to find your calling early, refine it into a craft, and then share it with others,” he suggests.
Beyond skill-building, Tobi acknowledges that developing the confidence to turn your passion into a business can be a challenge. However, he believes anyone can succeed as an entrepreneur. “Eventually, you realize that everything around us was created by people who aren’t necessarily smarter or more talented than us,” he says.
Don’t Wait for the ‘Eureka’ Moment—Start Taking Action
Entrepreneurship is often portrayed in popular culture as a dramatic moment of inspiration. But Tobi stresses that true success comes from continuous, small improvements.
“People think of innovation as a sudden ‘eureka’ moment, but it’s really about making steady, incremental improvements to the things we care about,” Tobi explains.
While innovation is commonly seen as disrupting industries or creating groundbreaking products, Tobi believes that entrepreneurs can have just as much impact by making small, meaningful changes. By improving everyday products or solving common problems, entrepreneurs can create lasting value.
“It’s about creating shoes that last longer,” Tobi says. “It’s about making everyday objects more beautiful and functional.”
Harness the Power of AI for New Opportunities
Tobi sees artificial intelligence (AI) as a game-changer for entrepreneurship, offering new growth opportunities for business owners.
“This is the most exciting technological shift in my career,” he says, comparing AI’s potential impact to the arrival of the internet years ago.
As AI makes programming more accessible to a wider range of people, Tobi is excited by the possibilities it unlocks.
“This will make it easier to determine the next steps in whatever you’re working on… AI simplifies learning and problem-solving,” Tobi explains.
Ultimately, Tobi believes AI can make entrepreneurship more accessible to a broader audience, removing many of the barriers that have traditionally made it challenging to start a business.
These are just a few of the insights from Tobi’s two-decade journey with Shopify. For more, watch his full interview on Shopify Masters.