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 to. 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.
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