PREFACE
The next Bill Gates will not be able to build an operating system. Even next Zuckerberg will not be able to find new social media. It is quite impossible to learn new if anybody just copies them. You may go from A to N, but you should not go from Zero to one. If American companies cannot understand this, they will not get success in the future. Companies must invent untraveled path to enjoy success.
THE CHALLENGE OF THE FUTURE
When anybody thinks about the future, they hope for the development of the future. That development can move from one to two. Extensive or Horizontal development means following things that work- moving from 1 to N. It is easy to imagine Horizontal development as people already know what is similar to that. Intensive or vertical progress means performing new things that mean moving from 0 to 1. On the other hand, vertical development is difficult to imagine since it requires performing something nobody has ever done. You have to understand that you can make horizontal development if you take one typewriter and build 100. With your typewriter, if you build a word processor, you can make vertical development.
If you think from the macro level, the single word for horizontal development might be globalization- things might work somewhere and making them work for everywhere. The word for vertical development 0 to 1, development is technology.
New technology always comes with new hope and inspiration. The simplest illustration of this is negative: it is difficult to develop new ideas in the big institutions and it is quiet harder for a person to do himself. Sometimes, you will find that bureaucracy go ahead slowly and some people go away from risk. In the most dysfunctional institutions, signaling work is done with a better strategy for the career development than actual work and ability (if you find something like this, you should avoid your company)
On the other hand, a meritorious might invent classic work of art of literature, but he might not be able to build entire industry. It is found that startups work on the principle that you require to work with other organizations or people to find suitable people and advice. In this case, you need to stay small so that you can perform enough.
By real definition, a start ups is the group of people by which you can build a plan and build your future. The most important things for the new company is it’s new thinking. Even, it is more important than nimbleness (small size affords to think).
This book actually carries the questions that you ask to have success and to invent new things in your life. It is not actually manual or recorded knowledge, rather it is the invention of thinking as it is what the startups must do. The owner must receive ideas and rethink about the business from the search.
If you think from the macro level, the single word for horizontal development might be globalization- things might work somewhere and making them work for everywhere. The word for vertical development 0 to 1, development is technology.
New technology always comes with new hope and inspiration. The simplest illustration of this is negative: it is difficult to develop new ideas in the big institutions and it is quiet harder for a person to do himself. Sometimes, you will find that bureaucracy go ahead slowly and some people go away from risk. In the most dysfunctional institutions, signaling work is done with a better strategy for the career development than actual work and ability (if you find something like this, you should avoid your company)
On the other hand, a meritorious might invent classic work of art of literature, but he might not be able to build entire industry. It is found that startups work on the principle that you require to work with other organizations or people to find suitable people and advice. In this case, you need to stay small so that you can perform enough.
By real definition, a start ups is the group of people by which you can build a plan and build your future. The most important things for the new company is it’s new thinking. Even, it is more important than nimbleness (small size affords to think).
This book actually carries the questions that you ask to have success and to invent new things in your life. It is not actually manual or recorded knowledge, rather it is the invention of thinking as it is what the startups must do. The owner must receive ideas and rethink about the business from the search.
PARTY LIKE IT’S 1999
When I was with PayPal back in 1999, I was worried about my intellectual ability. It was not like that I did not believe my company, but because I thought that everyone in our country was ready to believe anything at all. Everywhere I looked, I found that people were starting, rising and falling with alarming situation. But, at last PayPal had a suitable grand mission.
It was our dream to invent a new internet currency to replace the U.S dollar and it seemed to us that the boom was going to an end. Even we did not think that our mission will be successful to survive with the coming cash. In that case we moved fast as much as we could. Within a short time we raised $100 million and closed the deal. As a result, we found the hope.
Some entrepreneurs stuck with Silicon Valley and after the PayPal’s growth, they perceived four big lessons from the breakdown of dotcom. Still, that direct the present business proprietor.
1. Make advance growth. Grand ideas, exaggerated the bubble so that they never become spoiled.
2. Try to stay lean and supple. Every company must be lean which is an unplanned code. You should never think what your business will do. Planning is always arrogant and impractical. Instead of this, you should try for new experiment and new thinking.
3. Go ahead with the competition and never try to create new market hastily. The best way you can start with your business with new customers. So that you can build your company by developing known products which are already offered by successful rivals.
4. Never try to focus on sales, but product. Advertising or salespeople are not enough to sell product rather technology is primarily needed for product development not with the distribution.
These ideas have become belief in the beginning world. The people who will avoid this will get great crash . For these ideas, the opposite thinking might be more correct.
1. It is a better taking risk of boldness rather than triviality.
2. An inaccurate plan is better than no plan
3. Market with competition is harmful for the profit
4. Sales quality is always like product quality.
It is true that there was a huge growth of technology. The late 90 was like hubris. At that time people thought that they were going 0 to 1. There was a small number of start ups and many never went up.
Still, there is huge demand of new technology. Even we might need style of 1999. To establish the next generation of companies, we should avoid the dogmas emerged after the crash. You cannot think that opposite ideas are always true. Even you cannot reject them and cannot escape from the madness. Instead of these, you must ask yourself how much you have learned from the past mistake. The most important thing is that you should never oppose rather learn from the crowd and think about your business.
It was our dream to invent a new internet currency to replace the U.S dollar and it seemed to us that the boom was going to an end. Even we did not think that our mission will be successful to survive with the coming cash. In that case we moved fast as much as we could. Within a short time we raised $100 million and closed the deal. As a result, we found the hope.
Some entrepreneurs stuck with Silicon Valley and after the PayPal’s growth, they perceived four big lessons from the breakdown of dotcom. Still, that direct the present business proprietor.
1. Make advance growth. Grand ideas, exaggerated the bubble so that they never become spoiled.
2. Try to stay lean and supple. Every company must be lean which is an unplanned code. You should never think what your business will do. Planning is always arrogant and impractical. Instead of this, you should try for new experiment and new thinking.
3. Go ahead with the competition and never try to create new market hastily. The best way you can start with your business with new customers. So that you can build your company by developing known products which are already offered by successful rivals.
4. Never try to focus on sales, but product. Advertising or salespeople are not enough to sell product rather technology is primarily needed for product development not with the distribution.
These ideas have become belief in the beginning world. The people who will avoid this will get great crash . For these ideas, the opposite thinking might be more correct.
1. It is a better taking risk of boldness rather than triviality.
2. An inaccurate plan is better than no plan
3. Market with competition is harmful for the profit
4. Sales quality is always like product quality.
It is true that there was a huge growth of technology. The late 90 was like hubris. At that time people thought that they were going 0 to 1. There was a small number of start ups and many never went up.
Still, there is huge demand of new technology. Even we might need style of 1999. To establish the next generation of companies, we should avoid the dogmas emerged after the crash. You cannot think that opposite ideas are always true. Even you cannot reject them and cannot escape from the madness. Instead of these, you must ask yourself how much you have learned from the past mistake. The most important thing is that you should never oppose rather learn from the crowd and think about your business.
ALL HAPPY COMPANIES ARE DIFFERENT
It has been observed that the monopolist never tells the truth to protect themselves. They think that their monopoly will be observed, attacked and scrutinized. As they have huge demand in the market with monopoly profit, they do whatever they like and normally exaggerate their power with competition.
On the other hand, non-monopolist veil the reality: “we’re in an association of our own.” The entrepreneurs become biased to understate the gauge of competition, but that is the biggest mistake, which is made by a start up. The deadly lure is to label your market exceptionally limited so that you can control.
Monopolies moves for the development as the promise of the decades of monopoly profits offer powerful incentives to invent. Monopolies push the owner to keep inventing as huge profit assist them to create long-term plans and finance the high ambitious research project which a normal firm cannot dream.
Tolstoy has given his ideas in the book Anna Karenina by observing: “All happy families are alike; each unhappy family is unhappy in its own way.” But, in the case of Business it is totally opposite. All the profitable, happy companies are different: by solving a unique problem each one earns a monopoly. All unprofitable companies are alike: they failed to escape competition.
On the other hand, non-monopolist veil the reality: “we’re in an association of our own.” The entrepreneurs become biased to understate the gauge of competition, but that is the biggest mistake, which is made by a start up. The deadly lure is to label your market exceptionally limited so that you can control.
Monopolies moves for the development as the promise of the decades of monopoly profits offer powerful incentives to invent. Monopolies push the owner to keep inventing as huge profit assist them to create long-term plans and finance the high ambitious research project which a normal firm cannot dream.
Tolstoy has given his ideas in the book Anna Karenina by observing: “All happy families are alike; each unhappy family is unhappy in its own way.” But, in the case of Business it is totally opposite. All the profitable, happy companies are different: by solving a unique problem each one earns a monopoly. All unprofitable companies are alike: they failed to escape competition.
THE IDEOLOGY OF COMPETITION
Creative monopoly represent new products that help everyone and provide sustainable profit for the inventor. Competition in the market means there is no profit for anyone and fighting to survive. It is still strange that people believe competition healthy. Competition does not always mean economic concept. Still, people consider Competition as an ideology which pervades the human society and destroy the free thinking ability. People preach competition shows its necessity and enact it. As a result, people bind themselves within it. Even though there is more competition and less gain.
In the real world what is the actual meaning of competition? We can take Microsoft and Google for an example. One invented operating system and other built revolutionary search engine. What was the actual fight between these two? At the beginning each one wanted to prosper independently. But, as they gradually grew, they started to focus each other. Google became rival for Microsoft and vice verse. The result become - Bing vs. Google Search, Windows vs. Chrome OS, Surface vs. Nexus, Office vs. Docs, Explorer vs. Chrome.
Just like war cost the Capulets & Montagues their offspring . In the same way Microsoft and Google cost their dominance: coming along in the market, apple overtook them all. Apple’s market capitalization was $500 billion in January 2013, while Google and Microsoft jointly earned $467 billion. Google and Microsoft were more valuable than Apple. This proves that war is a costly business.
In the real world what is the actual meaning of competition? We can take Microsoft and Google for an example. One invented operating system and other built revolutionary search engine. What was the actual fight between these two? At the beginning each one wanted to prosper independently. But, as they gradually grew, they started to focus each other. Google became rival for Microsoft and vice verse. The result become - Bing vs. Google Search, Windows vs. Chrome OS, Surface vs. Nexus, Office vs. Docs, Explorer vs. Chrome.
Just like war cost the Capulets & Montagues their offspring . In the same way Microsoft and Google cost their dominance: coming along in the market, apple overtook them all. Apple’s market capitalization was $500 billion in January 2013, while Google and Microsoft jointly earned $467 billion. Google and Microsoft were more valuable than Apple. This proves that war is a costly business.
LAST MOVER ADVANTAGE
Still, PayPal needed time for profit, but the revenue of it was growing 100% year after year in March 2001. At present, PayPal keeps continuing its growth 15% annually and discount rate has become lower than decade ago. It can be predicted that most of the company's profit will come from 2020 and beyond.
Even in Silicon Valley, the irresistible significance of future incomes is counter intuitive. A company must endure and grow to be valuable, but most of the entrepreneurs only focus on short-term growth.
Instead of focusing short-term growth, if anyone focus on near-term growth people will question whether the business will continue until decades come. It does not matter how many kinds of business do you possess rather you must think about the quality of your business.
Every kind of monopoly business possesses unique characteristics. However, they usually share the following features:
· Network effects: As more people user pr Network, it make products more useful. To illustrate, if you find that all your friend use Facebook, it will inspire you to join Facebook too. Choosing a different network will make you eccentric.
· Economies of scale: As the monopoly business gets bigger, it becomes stronger. The fixed cost of producing products can be spread out in large quantities for sale. Software start ups can get dramatic economies of scale as producing another copy of products is close to zero.
Branding: By definition, a company possesses monopoly on its own brand. That’s why generating durable brand is a process to enjoy a monopoly. At present, Apple has become the sturdiest tech brand for its eye-catching looks and carefully chosen materials for the products iPhone and MacBook. It became unique for price positioning , Jobs’s personal charisma which contributed a category of their own.
You must hear about the first mover advantage. If you enter into the market at the beginning, you will be able to capture a larger amount of market share while your competitors face difficulties to start. Moving first is not a goal, but tactics. Moving fast means generating cash flows in the upcoming days. So, it does not mean whether you are a first mover. It is matter whether you have made enough profit. It might be better to be the last mover to enjoy specific market and to enjoy a monopoly profit. In this way, you can dominate a small niche and turns from their towards ambitious long-term vision.
Even in Silicon Valley, the irresistible significance of future incomes is counter intuitive. A company must endure and grow to be valuable, but most of the entrepreneurs only focus on short-term growth.
Instead of focusing short-term growth, if anyone focus on near-term growth people will question whether the business will continue until decades come. It does not matter how many kinds of business do you possess rather you must think about the quality of your business.
Every kind of monopoly business possesses unique characteristics. However, they usually share the following features:
- Proprietary Technology: Proprietary technology is an important characteristic as it is difficult to make your products replicate. For instance, Google’s search algorithms bring results better than anyone else’s. It was quite impossible for anyone to do what Google did in the early 2000s as a search engine.
· Network effects: As more people user pr Network, it make products more useful. To illustrate, if you find that all your friend use Facebook, it will inspire you to join Facebook too. Choosing a different network will make you eccentric.
· Economies of scale: As the monopoly business gets bigger, it becomes stronger. The fixed cost of producing products can be spread out in large quantities for sale. Software start ups can get dramatic economies of scale as producing another copy of products is close to zero.
Branding: By definition, a company possesses monopoly on its own brand. That’s why generating durable brand is a process to enjoy a monopoly. At present, Apple has become the sturdiest tech brand for its eye-catching looks and carefully chosen materials for the products iPhone and MacBook. It became unique for price positioning , Jobs’s personal charisma which contributed a category of their own.
You must hear about the first mover advantage. If you enter into the market at the beginning, you will be able to capture a larger amount of market share while your competitors face difficulties to start. Moving first is not a goal, but tactics. Moving fast means generating cash flows in the upcoming days. So, it does not mean whether you are a first mover. It is matter whether you have made enough profit. It might be better to be the last mover to enjoy specific market and to enjoy a monopoly profit. In this way, you can dominate a small niche and turns from their towards ambitious long-term vision.
YOU ARE NOT A LOTTERY TICKET
You can predict future certain or uncertain. If you can predict the definite future, you can shape the future in your own way. But, if you have indefinite future, you cannot go further long way and that cannot shape your future. You can predict the future, whether it will be worse or better. Pessimists fear the future on the other hand optimist welcome the future. The combination of these two produce 4 views:
Indefinite pessimism – This type of people always think about the black future, but he does not know how to face that problem.In 1970s, whole Europe faced such situation for the lack of knowledge, but today the whole Europe is going towards slow motion crisis and there is no charge of anybody.
Definite pessimism – This type people know that the future can be known. As it is dangerous, he must take preparation to face it. At present, probably China is the most definitely pessimistic place. While whole the world is amazed by China’s growth and people are thinking that it is going to take over the world. But, China is the only country who thinks that she won’t.
Definite optimism –This type of people always regards future better than present if he can take a plan to make it successful. From the 17th Century, definite optimists are leading the western world.
Indefinite optimism – This type of optimist knows that future will be better they don’t know how exactly. As a result, they cannot make a specific plan. He dreams to make profit from the future, but does not know how to design the future.
A start up is the huge endeavor in which you can have definite mastery. You can contribute by it not over your life, but a small contribution for the whole world. It actually begins with the rejection of the lottery and chance and you are not a lottery.
Indefinite pessimism – This type of people always think about the black future, but he does not know how to face that problem.In 1970s, whole Europe faced such situation for the lack of knowledge, but today the whole Europe is going towards slow motion crisis and there is no charge of anybody.
Definite pessimism – This type people know that the future can be known. As it is dangerous, he must take preparation to face it. At present, probably China is the most definitely pessimistic place. While whole the world is amazed by China’s growth and people are thinking that it is going to take over the world. But, China is the only country who thinks that she won’t.
Definite optimism –This type of people always regards future better than present if he can take a plan to make it successful. From the 17th Century, definite optimists are leading the western world.
Indefinite optimism – This type of optimist knows that future will be better they don’t know how exactly. As a result, they cannot make a specific plan. He dreams to make profit from the future, but does not know how to design the future.
A start up is the huge endeavor in which you can have definite mastery. You can contribute by it not over your life, but a small contribution for the whole world. It actually begins with the rejection of the lottery and chance and you are not a lottery.
FOLLOW THE MONEY:
This chapter will present about when you follow the money you will find that how the power law become visible: the investor tries to make profit from the venture capital. But, in this case, a few companies earn more than other companies. From some statistics it has been found that in 2005 Facebook returned more than all other investors. Palantir was the second best investor. In the venture capital the biggest secret is that the most successful investor becomes equal to the entire rest of the other investors.
Actually the power law is not an important matter for the investor rather it is noteworthy to everyone as everyone is a financier. An industrialist invest huge amount of time working on his start up. So, an entrepreneur must think about the success of his company. Every individual person is an investor. Like, when you select your career, you believe that the work you are performing will be more valuable in the near future.
Before starting your own company, you have to think the power law to conduct your company well. The most important things is that one market will be better than others. Time and decision making follow power law. You cannot accurately frame your ideas for you and you cannot trust the power law. In the power law world, you will not be able to understand where your action will fall.
SECRETS
The most familiar ideas at present was totally unknown and unsuspected once. The mathematical bond between a triangle was a secret for the millennia. At present, Pythagoras’s theorem has been a convention, which we teach to the school students. A conventional truth is essential to learn basic mathematics, but it won't give you any border and its not a top secret.
Still, there is a lot of stuff which we cannot understand, even some of these things may be unachievable to figure out. To explain, you will not be able to test it whether it is true. Very few people can understand its application and that’s why it is difficult. You cannot achieve impossible things rather you can achieve difficult things.
There is still some valuable company which has not yet been built. Something unknown and important, something difficult, but doable. Probably, there are many world changing companies will be started, if there are many secrets left in the world.
In the world there are two sorts of secrets: secrets about people and the secrets of nature. All around us natural secrets exist. To discover them, one must study some undiscovered things of the natural world. On the other hand, secrets about people are different. Sometimes, people don’t know about themselves or they hide something as they never want to show its others. Before going to build the company, there are two important questions to ask: what secrets is not told by the nature and what secrets are not told by the people.
Still, there is a lot of stuff which we cannot understand, even some of these things may be unachievable to figure out. To explain, you will not be able to test it whether it is true. Very few people can understand its application and that’s why it is difficult. You cannot achieve impossible things rather you can achieve difficult things.
There is still some valuable company which has not yet been built. Something unknown and important, something difficult, but doable. Probably, there are many world changing companies will be started, if there are many secrets left in the world.
In the world there are two sorts of secrets: secrets about people and the secrets of nature. All around us natural secrets exist. To discover them, one must study some undiscovered things of the natural world. On the other hand, secrets about people are different. Sometimes, people don’t know about themselves or they hide something as they never want to show its others. Before going to build the company, there are two important questions to ask: what secrets is not told by the nature and what secrets are not told by the people.
FOUNDATIONS
Every big and famous company is unique. There are some things which every company should have at the beginning. As a founder, it is your first duty to have the first things right as you cannot make a big company on the floating foundation.
Founding matrimony – Before going to start a company, the most important thing you should consider that whom you are going to start with. Selecting a co-founder is like getting married and conflict among the founder is like an ugly divorce. Founders should share their previous history otherwise will fall in trouble and the business will not find the ray of hope.
Ownership, possession & control – You should differentiate among these there concepts:Ownership: who lawfully owns a company? Possession: on the day to day basis who actually conducts the company? Control: who officially operate the company’s vital associations?
On the bus or off the bus – As a common rule, the people you relate with your company need to be related full-time. Now and then, you have to stay away from these rules as it normally make sense to employ people from outside. But, the person who does not draw regular salary from your company is misaligned.
Cash is not king – Cash is always regard as attractive things. Since it offers original opting like you receive your paycheck and you do anything what you like to do with it. High cash compensation teaches the workers to demand value from the company. Worker consider cash bonus better than the cash salary. Even some incentives pay encourages short-term thinking. Any kind of cash is better at present than the future.
Vested interests – Start ups need not pay high salaries as they are able to offer something better like partially ownership of the company. Equity is regarded as one of the compensation of the company and that equity can encourage people to create value in the future.
Extending the founding – Founding moment of the company just occur at the begging. At the beginning you can set the rules that will encourage people to create value in the near future.
THE MECHANICS OF MAFIA
The founding team is always regard important as any company culture. A start up is a group of people who fight for the challenge of a mission. On the contrary, a good culture is the inside culture of the corporate company. A company does not possess culture, it is itself a culture.
If you look from the outside, you will find that every worker in your company is different in the same way. The early PayPal team worked together fantastically as they possessed same kind of spirit. Most of the team members were obsessed with the digital currency that would be regulated by the individual not by the governments. For the company it does not matter what people look like or from where they have come rather it is a matter whether they are obsessed with same spirit of the company.
In another word, every individual will be sharply considered by her work. The thing which I did for the PayPal was to make the people responsible to perform just one thing. Evey worker had one unique thing and they knew that I would evaluate them by that one thing. I started that things just to simplify the task of controlling people. After few days , I found some deeper result that is defining roles lessened argument. Most of the fight in the company happens when the worker compete for the similar types of job and accountability. In this situation, start-ups face difficulty in the early stages. Avoiding competition makes it easier for anyone to make the type of long-term bondage that becomes more professional.
Founding matrimony – Before going to start a company, the most important thing you should consider that whom you are going to start with. Selecting a co-founder is like getting married and conflict among the founder is like an ugly divorce. Founders should share their previous history otherwise will fall in trouble and the business will not find the ray of hope.
Ownership, possession & control – You should differentiate among these there concepts:Ownership: who lawfully owns a company? Possession: on the day to day basis who actually conducts the company? Control: who officially operate the company’s vital associations?
On the bus or off the bus – As a common rule, the people you relate with your company need to be related full-time. Now and then, you have to stay away from these rules as it normally make sense to employ people from outside. But, the person who does not draw regular salary from your company is misaligned.
Cash is not king – Cash is always regard as attractive things. Since it offers original opting like you receive your paycheck and you do anything what you like to do with it. High cash compensation teaches the workers to demand value from the company. Worker consider cash bonus better than the cash salary. Even some incentives pay encourages short-term thinking. Any kind of cash is better at present than the future.
Vested interests – Start ups need not pay high salaries as they are able to offer something better like partially ownership of the company. Equity is regarded as one of the compensation of the company and that equity can encourage people to create value in the future.
Extending the founding – Founding moment of the company just occur at the begging. At the beginning you can set the rules that will encourage people to create value in the near future.
THE MECHANICS OF MAFIA
The founding team is always regard important as any company culture. A start up is a group of people who fight for the challenge of a mission. On the contrary, a good culture is the inside culture of the corporate company. A company does not possess culture, it is itself a culture.
If you look from the outside, you will find that every worker in your company is different in the same way. The early PayPal team worked together fantastically as they possessed same kind of spirit. Most of the team members were obsessed with the digital currency that would be regulated by the individual not by the governments. For the company it does not matter what people look like or from where they have come rather it is a matter whether they are obsessed with same spirit of the company.
In another word, every individual will be sharply considered by her work. The thing which I did for the PayPal was to make the people responsible to perform just one thing. Evey worker had one unique thing and they knew that I would evaluate them by that one thing. I started that things just to simplify the task of controlling people. After few days , I found some deeper result that is defining roles lessened argument. Most of the fight in the company happens when the worker compete for the similar types of job and accountability. In this situation, start-ups face difficulty in the early stages. Avoiding competition makes it easier for anyone to make the type of long-term bondage that becomes more professional.
IF YOU BUILD IT, WILL THEY COME?
Superior distribution and sales generate monopoly environment without product differentiation. It does not matter how excellent your product is even if it is an established in the market. You have to still support it with the best distribution plan.
For the effective distribution two metrics set the limits. The net profit which you generate from the customer must exceed the amount that you spend to get a new customer. It is normal that if your products have higher price, you have to spend more for sale.
Complex sales – You need close personal attention if your sell become average 7 figur. To develop complex sell you need a few months to develop relationship. This type of sale you can have once in every year or two. It might be hard to sell, but complex sale is the only way to sell valuable products.
Personal sales – Most of the sales are not complex. Average deal sizes might be between $10,000 to $100,000 and the CEO need not do all the selling himself. It is not a challenge how to make particular sale, rather it is challenge to establish a process by which a modest size of sales team sends the product to the larger audience.
Distribution doldrums – There is a dead zone in between conventional advertising and individual sale. You need personal sales effort to sell $1000 products, but for this price you simply don’t have the resources to send a person to talk with the customers. Advertising is regarded as general and it is not enough for the targeted audience. At the end you will find that you are stuck in the sales dilemma.
Marketing and advertising – For the low priced products advertising and marketing is needed and this product can appeal mass people, but there is lack of viral distribution. To reach the end user, a company need to produce tv commercial, print coupons in the newspaper,etc. to attract the people.
Viral marketing – When a product functionally encourages the people to invite their friends to use that the products become viral. In this way PayPal and Facebook grew quickly. Every moment people invite or share this link with their friends to join the network. It is not only cheap but also fast. When a new users works to add additional user that create chain reaction for the dramatic growth.
People might think that sales don’t work, we make up our own mind. But, it’s a totally wrong idea. Everybody has the ability to sell the product not matter whether you are a founder or an employee or an investor. Even, if your company consists of your computer and you. In that case just look around, if you don’t find any sales person, you are the salesperson.
MAN AND MACHINE
Most of the people believe that computer will do a lot in the future. There might have question will there have anything left for the people to do? Kessler explain that to enjoy great productivity you should get rid of people. Forbes asked people will a machine replace people?
Futurists always think the answer is Yes. On the contrary some people believe that computer and technology cannot replace human worker rather computers are the complement for the humans, not substitutes. The most important business in the near future will be to empower people rather try to make them obsolete. Humans and computer is not just a macro-scale fact rather it is the way to build a great business.
You might think about the present professional today. In several different ways a lawyer must find the solution of the critical problems according to client, judge and opposing counsel. Doctors should have ability to communicate with the non-expert patients. Good understanding of the disciplines cannot make a good teacher, rather a good teacher must know how to make pupils understand with proper learning style. Computer can perform some of these task, but they cannot accumulate them properly. Better technology in education, medicine and law cannot be substitute for the skilled person, rather it permits them to carry out more.
SEEING GREEN
What was the reason for the failure of Cleantech? When green energy became essential for the government, it became poisoned. But there were some wonderful reasons for taking energy a priority. Most of the companies crashed as they neglected some crucial questions which must be answered properly:
1. The Engineering Question – Is it possible to generate advance technology instead of incremental developments?
2. The Timing Question – Is it the right time to begin specific business?
3. The Monopoly Question – Have you started with a large share of a minor market?
4. The People Question – Have you fixed the right team?
5. The Distribution Question – Do you have a proper way to deliver your product?
6. The Durability Question – Will you survive in the market in the next 10 to 20 years?
7. The Secret Question – Have you invented an exclusive prospect which is invisible to others?
Every great business should address above questions. If you don’t find the perfect answer, you will face bad luck and your business will fail.
THE FOUNDER’S PARADOX
Are all founders rare people? The more important thing is what kind of personalities really matter in a founder? Most of the successful founders are both insiders and outsiders. When they become successful, they attract both infamy and fame.
From where the strange combination of the traits comes from? They could be inherited from birth or acquired from an individual environment. Some people regard them as extreme,but actually they are not.
Is Branson just a mere businessman or is he born with genius to manipulate the journalist in the right way? It is hard to say- may be he possesses both. Without any founder a business cannot exist. We need to be more tolerant for the strange and extreme founder as we need unusual people to conduct a company. People should not overestimate their own power.
CONCLUSION: STAGNATION OR SINGULARITY?
If a founder cannot predict or take a plan for the next 20 to 30 years, he cannot say anything about the distant future. Nobody can specify the future but at least we can predict. Philosopher Bostrom present 4 possible ideas for the future humanity.
The ancient people saw all the history between ruin and prosperity. But in the recent modern age people have dared to hope that we might escape misfortune forever and still there is possibility to wonder whether we might get stability will last.
Conventional wisdom predict that the world will converge to a plateau of progress to the richest country today. In this case, the future will be like the present.
By this interconnected geography it can be asked that larger –scale social disaster may occur. That is the fear that for that collapse we might not survive.
The last of the four possibilities is that it might accelerate toward much healthier prospect and that is hard to visualize.
The fourth scenario is most dramatic whose outcome is singularity, a ray of hope for the new technology. According to Kurzweil, “the Singularity is near,” it’s inevitable, and all we have to do is prepare ourselves to accept it.
Out main duty is to searching singular way to create new things that will not only make a difference but also make better to go from 0 to 1.
For the effective distribution two metrics set the limits. The net profit which you generate from the customer must exceed the amount that you spend to get a new customer. It is normal that if your products have higher price, you have to spend more for sale.
Complex sales – You need close personal attention if your sell become average 7 figur. To develop complex sell you need a few months to develop relationship. This type of sale you can have once in every year or two. It might be hard to sell, but complex sale is the only way to sell valuable products.
Personal sales – Most of the sales are not complex. Average deal sizes might be between $10,000 to $100,000 and the CEO need not do all the selling himself. It is not a challenge how to make particular sale, rather it is challenge to establish a process by which a modest size of sales team sends the product to the larger audience.
Distribution doldrums – There is a dead zone in between conventional advertising and individual sale. You need personal sales effort to sell $1000 products, but for this price you simply don’t have the resources to send a person to talk with the customers. Advertising is regarded as general and it is not enough for the targeted audience. At the end you will find that you are stuck in the sales dilemma.
Marketing and advertising – For the low priced products advertising and marketing is needed and this product can appeal mass people, but there is lack of viral distribution. To reach the end user, a company need to produce tv commercial, print coupons in the newspaper,etc. to attract the people.
Viral marketing – When a product functionally encourages the people to invite their friends to use that the products become viral. In this way PayPal and Facebook grew quickly. Every moment people invite or share this link with their friends to join the network. It is not only cheap but also fast. When a new users works to add additional user that create chain reaction for the dramatic growth.
People might think that sales don’t work, we make up our own mind. But, it’s a totally wrong idea. Everybody has the ability to sell the product not matter whether you are a founder or an employee or an investor. Even, if your company consists of your computer and you. In that case just look around, if you don’t find any sales person, you are the salesperson.
MAN AND MACHINE
Most of the people believe that computer will do a lot in the future. There might have question will there have anything left for the people to do? Kessler explain that to enjoy great productivity you should get rid of people. Forbes asked people will a machine replace people?
Futurists always think the answer is Yes. On the contrary some people believe that computer and technology cannot replace human worker rather computers are the complement for the humans, not substitutes. The most important business in the near future will be to empower people rather try to make them obsolete. Humans and computer is not just a macro-scale fact rather it is the way to build a great business.
You might think about the present professional today. In several different ways a lawyer must find the solution of the critical problems according to client, judge and opposing counsel. Doctors should have ability to communicate with the non-expert patients. Good understanding of the disciplines cannot make a good teacher, rather a good teacher must know how to make pupils understand with proper learning style. Computer can perform some of these task, but they cannot accumulate them properly. Better technology in education, medicine and law cannot be substitute for the skilled person, rather it permits them to carry out more.
SEEING GREEN
What was the reason for the failure of Cleantech? When green energy became essential for the government, it became poisoned. But there were some wonderful reasons for taking energy a priority. Most of the companies crashed as they neglected some crucial questions which must be answered properly:
1. The Engineering Question – Is it possible to generate advance technology instead of incremental developments?
2. The Timing Question – Is it the right time to begin specific business?
3. The Monopoly Question – Have you started with a large share of a minor market?
4. The People Question – Have you fixed the right team?
5. The Distribution Question – Do you have a proper way to deliver your product?
6. The Durability Question – Will you survive in the market in the next 10 to 20 years?
7. The Secret Question – Have you invented an exclusive prospect which is invisible to others?
Every great business should address above questions. If you don’t find the perfect answer, you will face bad luck and your business will fail.
THE FOUNDER’S PARADOX
Are all founders rare people? The more important thing is what kind of personalities really matter in a founder? Most of the successful founders are both insiders and outsiders. When they become successful, they attract both infamy and fame.
From where the strange combination of the traits comes from? They could be inherited from birth or acquired from an individual environment. Some people regard them as extreme,but actually they are not.
Is Branson just a mere businessman or is he born with genius to manipulate the journalist in the right way? It is hard to say- may be he possesses both. Without any founder a business cannot exist. We need to be more tolerant for the strange and extreme founder as we need unusual people to conduct a company. People should not overestimate their own power.
CONCLUSION: STAGNATION OR SINGULARITY?
If a founder cannot predict or take a plan for the next 20 to 30 years, he cannot say anything about the distant future. Nobody can specify the future but at least we can predict. Philosopher Bostrom present 4 possible ideas for the future humanity.
The ancient people saw all the history between ruin and prosperity. But in the recent modern age people have dared to hope that we might escape misfortune forever and still there is possibility to wonder whether we might get stability will last.
Conventional wisdom predict that the world will converge to a plateau of progress to the richest country today. In this case, the future will be like the present.
By this interconnected geography it can be asked that larger –scale social disaster may occur. That is the fear that for that collapse we might not survive.
The last of the four possibilities is that it might accelerate toward much healthier prospect and that is hard to visualize.
The fourth scenario is most dramatic whose outcome is singularity, a ray of hope for the new technology. According to Kurzweil, “the Singularity is near,” it’s inevitable, and all we have to do is prepare ourselves to accept it.
Out main duty is to searching singular way to create new things that will not only make a difference but also make better to go from 0 to 1.
