Classpass Founder: Quitting My 9-5 Led To A $1 Billion Business: Payal Kadakia
The episode features Pyle, founder of ClassPass, discussing her journey from conforming to societal expectations to building a billion-dollar company by pursuing her purpose. She shares insights on finding your "why," overcoming challenges, and balancing ambition with personal fulfillment.
Deep Dive Analysis
20 Topic Outline
Early Life Experiences and Drive
Discovering Purpose Through Dance
Navigating Cultural Identity and Expectations
The Emptiness of Living an Expected Life
Choosing Passion Over Corporate Career Demands
A Performance Review as a Turning Point
Rebelling for Purpose and Finding Community
Building Confidence Through Small Achievements
Methods for Discovering Personal Purpose
The Problem That Led to ClassPass
The Entrepreneurial Mindset and Taking the Leap
Overcoming Initial Product Failure and Pivoting
Finding Product-Market Fit and Variety
Sacrifices and Mental Health in Entrepreneurship
Intentional Goal Setting for Life Priorities
Evolution as a Leader and Delegation
The Decision to Step Away from ClassPass
The Impact of ClassPass's Billion-Dollar Valuation
Balancing Ambition with Romantic and Family Life
The Role of Therapy and Self-Reflection
4 Key Concepts
Rebelling for Purpose
This concept describes defying societal or personal expectations not out of mere defiance, but to pursue a deeper, intrinsic passion or mission. It involves fighting for something meaningful, often integrating different parts of one's identity that others might see as conflicting, to create something new and valuable.
Invisible PR
Invisible PR refers to the positive reputation one builds through consistent good work, even in roles one doesn't necessarily love. This unspoken positive impression on colleagues and superiors can open doors and opportunities later in a career, as people remember one's capability and dedication.
Mission Obsessed vs. Product Obsessed
Instead of becoming fixated on a specific product idea or initial hypothesis, an entrepreneur should be deeply committed to solving the core problem for their users. This mindset allows for flexibility and a willingness to pivot, change product names, or even discard entire product iterations if they are not effectively serving the overarching mission.
False Signals of Success
These are external validations such as press coverage, social media followers, or magazine features that can make an entrepreneur feel successful, even if the core product isn't working or customers aren't engaging. Such signals can be misleading and distract from the true measure of product-market fit and impact.
7 Questions Answered
Payal believes purpose is already inside you, and you need to be willing to listen to it. Start by asking what you loved when you were younger, what lit you up, who your role models are, and what you look at for a second longer. If you had all the money in the world, how would you spend your day tomorrow? Be willing to go down the path of exploring and trying new things.
Living a life expected of you, even if it means checking all the boxes and making others proud, ultimately leads to a feeling of emptiness. This can make your life feel small and leave you feeling hopeless because you haven't asked yourself what you truly want.
Confidence isn't built in one giant leap, but through a series of small steps. Achieving small successes, like putting on a well-received show for 150 people, then for a thousand, builds subjective evidence in yourself that you can do more, gradually leading to the confidence for bigger endeavors.
Doing good work consistently, regardless of your passion for the role, builds 'invisible PR' or a strong reputation. This reputation can lead to unexpected opportunities and support later in life, as people remember your capability and dedication when you decide to pursue your true calling.
Many entrepreneurs become too 'product obsessed' and romantic about their initial hypothesis, trying to force a square peg into a round hole. The mistake is not having the humility to pivot and discard past ideas, instead focusing on the core mission and what truly solves the problem for the customer.
It's crucial to bring partners along the journey and be highly communicative about priorities. Setting goals together as a family unit, alongside individual ambitions, and being flexible and adaptable to try new approaches when conflicts arise, helps ensure everyone's happiness and support.
After a decade of solving the problem with ClassPass, Payal felt it was time to unleash herself to solve other problems in the world. She believes being stuck in the past prevents welcoming new opportunities for the future, and her future is waiting for her.
14 Actionable Insights
1. Prioritize Purpose for Fulfillment
Focus on living a purpose-driven life, as it guarantees more fulfillment than chasing traditional markers of success like money or fame. When decisions align with purpose, even rebellion is a strong and justifiable force.
2. Uncover Your Inner Purpose
To find your “why,” reflect on what you loved when you were younger, what made you light up, who inspires you, and what topics or people you linger on. These internal pulls reveal your true purpose, which is already inside you.
3. Challenge Societal Expectations of Success
Do not let society’s definition of success (e.g., get this job, get married, get a house) make your life feel small or lead to emptiness. Instead, define your own expectations for a fulfilled life, even if it means rebelling against conventional paths.
4. Embrace Failure as a Data Point
View failures not as an end point or a sign of inadequacy, but as valuable data points that provide deeper insights and force you to think creatively to solve problems. This mindset is crucial for true entrepreneurship and innovation.
5. Build Confidence Through Small Steps
Recognize that confidence for big dreams is built incrementally through a series of small successes. Take tiny steps, like putting on a small show or trying a new class, to gather subjective evidence in yourself that you can do more.
6. Cultivate a Supportive Community
Actively seek out and embrace new communities that make you feel whole and shine, especially during transitional periods in your life. Do not let fear of losing an existing community keep you trapped in an unfulfilling situation.
7. Prepare for Your Leap of Faith
Before taking a significant leap towards your dreams, earn your “stripes” by consistently doing good work and building a strong foundation (e.g., saving money, acquiring skills). This preparation allows you to focus on your mission without peripheral constraints.
8. Be Mission-Obsessed, Not Product-Obsessed
When building a company or project, stay deeply focused on solving the core problem for your customers, rather than getting romantically attached to your initial product idea. Be willing to pivot, change names, or throw away past work if it doesn’t serve the mission.
9. Talk to Your Customers Directly
Avoid getting stuck behind technology or assumptions; actively engage with real people and customers to understand their needs, fears, and motivations. This direct feedback is essential for discovering true product-market fit.
10. Practice Intentional Goal Setting
Regularly set clear goals across all areas of your life (professional, personal, health, relationships) to ensure your priorities reflect the human you want to be. Writing down these dreams, even on a post-it note, can lead to their accomplishment.
11. Delegate to Focus on Your Magic
As a leader, learn to delegate tasks that others can do, reserving your time and energy for the “magical” things only you can accomplish. This allows you to focus on high-impact work and build big things effectively.
12. Bring Your Partner into Your Journey
Actively involve your romantic partner in your ambitions and career journey, allowing them to experience the process with you. This shared experience can strengthen the relationship and foster mutual support.
13. Prioritize Family Happiness Collectively
Regularly communicate with your partner to define what happiness looks like for each of you individually and as a family unit. Be flexible and adaptable, trying new approaches to resolve conflicts and ensure everyone’s well-being.
14. Consider Therapy for Mental Blocks
View therapy as a tool for mental fitness, similar to how a trainer works on physical strength. It can help identify and overcome mental roadblocks or feelings of being out of orientation, especially during challenging life transitions.
9 Key Quotes
If you go towards purpose, I guarantee your life will be more fulfilling.
Payal
I spent half a million dollars building a product that didn't work.
Payal
The day I failed was the day I became an entrepreneur because that was the day I really had to think deeper about creating something in the world that didn't exist.
Payal
I think society goes, success is get this job, get married, get a house. What does that do to you? It just really makes your life feel small.
Payal
To be mission obsessed, not product obsessed.
Payal
It's not about that, right? It's about solving the problem in the world and moving towards that and your mission.
Payal
The people you surround yourself with are your choice.
Payal
I want to make sure my priorities are more reflective of the human I want to be in my life.
Payal
I think when you don't have a why, you go aimlessly and you, you know, I think you start living life thinking that you want money, thinking you want to be famous, thinking you want power. And instead of thinking about like love and passion and purpose.
Payal
1 Protocols
Method for Discovering Your 'Why' / Purpose
Payal- Ask yourself what you loved when you were younger.
- Reflect on when you truly 'lit up'.
- Identify your role models and inspirations.
- Notice what things you look at for a second longer.
- Consider who you want to talk to for a few minutes more, and why.
- Imagine you had all the money in the world: how would you spend your day tomorrow?
- Be willing to go down the path of exploring and trying new things.