HOW A BOOK SELLER HAS BECOME WORLD’S RICHEST MAN

 The world’s richest man. Jeff Bezos!

Entrepreneur and e-commerce pioneer Jeff Bezos is the founder and CEO of the e-commerce company Amazon, owner of The Washington Post and founder of the space exploration company Blue Origin. His successful business ventures have made him one of the richest

Jeff is  a legend now…..

Interestingly….

  • Jeff Bezos hates PowerPoint, and holds meetings with silence and reading.
  • Jeff Bezos’s company owns 47% of the US eCommerce market but has no profits (the revenue is reinvested for market share).
  • Jeff Bezos started Amazon, which went from selling books to transforming into the Everything Store, providing web services, producing its own movies .
  • Some of Important quotes of this one of the richest persons

1: “If you double the number of experiments you do per year, you’re going to double your inventiveness.” – Jeff Bezos

2: “Life’s too short to hang out with people who are not resourceful.” – Jeff Bezos

3: “A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.” – Jeff Bezos

4: “One of the only ways to get out of a tight box is to invent your way out.” – Jeff Bezos

5: “What we need to do is always lean into the future; when the world changes around you and when it changes against you – what used to be a tail wind is now a head wind – you have to lean into that and figure out what to do because complaining isn’t a strategy.” – Jeff Bezos

JEFF’s SUCCESS TIPS IN HIS OWN WORDS

Amazon’s big ideas:

“We’ve had three big ideas at Amazon that we’ve stuck with for 18 years, and they’re the reason we’re successful: Put the customer first. Invent. And be patient.”

 Different vs better:

“One of the things we don’t do very well at Amazon is a me-too product offering. So when I look at physical retail stores, it’s very well served, the people who operate physical retail stores are very good at it…the question we would always have before we would embark on such a thing is: What’s the idea? What would we do that would be different? How would it be better? We don’t want to just do things because we can do them…we don’t want to be redundant.”

Always charging less:

“There are two kinds of companies, those that work to try to charge more and those that work to charge less. We will be the second.”

 Novelty:

“What we want to be is something completely new. There is no physical analog for what Amazon.com is becoming.”

 Profitability:

“We expect all our businesses to have a positive impact on our top and bottom lines. Profitability is very important to us or we wouldn’t be in this business.”

Customer-focus:

“If there’s one reason we have done better than of our peers in the Internet space over the last six years, it is because we have focused like a laser on customer experience, and that really does matter, I think, in any business. It certainly matters online, where word-of-mouth is so very, very powerful.”

Baking for the future

“Friends congratulate me after a quarterly-earnings announcement and say, ‘Good job, great quarter … And I’ll say, ‘Thank you, but that quarter was baked three years ago. I’m working on a quarter that’ll happen in 2021 right now.’”

 why Amazon forgoes profits for growth:

“If everything you do needs to work on a three-year time horizon, then you’re competing against a lot of people. But if you’re willing to invest on a seven-year time horizon, you’re now competing against a fraction of those people, because very few companies are willing to do that.

“At Amazon we like things to work in five to seven years. We’re willing to plant seeds, let them grow and we’re very stubborn. We say we’re stubborn on vision and flexible on details.”

Patience:

In some cases, things are inevitable. The hard part is that you don’t know how long it might take, but you know it will happen if you’re patient enough. Ebooks had to happen. Infrastructure web services had to happen. So you can do these things with conviction if you are long-term-oriented and patient

 Ambition:

“Amazon today remains a small player in global retail. We represent a low single-digit percentage of the retail market, and there are much larger retailers in every country where we operate. And that’s largely because nearly 90% of retail remains offline, in brick and mortar stores.”

On staying humble:

“I like treating things as if they’re small, you know Amazon even though it is a large company, I want it to have the heart and spirit of a small one.”

 Growth:

“Focus on cost improvement makes it possible for us to afford lower prices, which drives growth. Growth spreads fixed costs across more sales, reducing cost per unit, which makes possible more price reductions. Customers like this, and it’s good for shareholders. Please expect us to repeat this loop.”

 Efficiency vs Flexibility

“Wandering in business is not efficient … but it’s also not random. It’s guided…and powered by a deep conviction that the prize for customers is big enough that it’s worth being a little messy and tangential to find our way there. Wandering is an essential counterbalance to efficiency. You need to employ both. The outsized discoveries – the “non-linear” ones – are highly likely to require wandering.”

 competition:

“Your margin is my opportunity.”

 value creation vs advertising: 

“The balance of power is shifting toward consumers and away from companies… The right way to respond to this if you are a company is to put the vast majority of your energy, attention and dollars into building a great product or service and put a smaller amount into shouting about it, marketing it.”

 fact-based decision-making:

“The great thing about fact-based decisions is that they overrule the hierarchy.”

 Benefits of Market Leadership:

“Market leadership can translate directly to higher revenue, higher profitability, greater capital velocity, and correspondingly stronger returns on invested capital.”

 culture:

“Part of company culture is path-dependent – it’s the lessons you learn along the way.”

 history: 

“The killer app that got the world ready for appliances was the light bulb. So the light bulb is what wired the world. And they weren’t thinking about appliances when they wired the world. They were really thinking about – they weren’t putting electricity into the home. They were putting lighting into the home.”

 inverting questions:

“The common question that gets asked in business is, ‘why?’ That’s a good question, but an equally valid question is, ‘why not?’”

 online scale:

“On the Internet, companies are scale businesses, characterized by high fixed costs and relatively low variable costs. You can be two sizes: You can be big, or you can be small. It’s very hard to be medium. A lot of medium-sized companies had the financing rug pulled out from under them before they could get big.”

 knowledge:

“If you don’t understand the details of your business you are going to fail.”

advertising (industry):

“I’m skeptical of any mission that has advertisers at its centrepiece.”

 advertising

“In the old world, you devoted 30% of your time to building a great service and 70% of your time to shouting about it. In the new world, that inverts.”

 Long-termism:

“My own view is that every company requires a long-term view.”

 novelty:

“A company shouldn’t get addicted to being shiny, because shiny doesn’t last.”

cultural evolution:

“A word about corporate cultures: for better or worse, they are enduring, stable, hard to change. They can be a source of advantage or disadvantage. You can write down your corporate culture, but when you do so, you’re discovering it, uncovering it — not creating it…..The reason cultures are so stable in time is because people self-select.”

 Impact & Legacy:

“… seek to build a community–to make better choices in the people with whom you partner–that’s the only way to have greater long-term impact on the world.”

 hiring:

“I’d rather interview 50 people and not hire anyone than hire the wrong person.”

 hiring superstars:

“During our hiring meetings, we ask people to consider three questions before making a decision…Will you admire this person?…Will this person raise the average level of effectiveness of the group they’re entering?….Along what dimension might this person be a superstar?”

 failure:

“I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret is not trying.”

 Predicting customer needs for the future:

“It is difficult for us to imagine that ten years from now, customers will want higher prices, less selection, or slower delivery. Our belief in the durability of these pillars gives us the confidence required to invest in strengthening them.”

 Customer Obsession:

”The most important single thing is to focus obsessively on the customer. Our goal is to be earth’s most customer-centric company.”

 building for Customer Needs

“Working backwards” from customer needs can be contrasted with a “skills-forward” approach where existing skills and competencies are used to drive business opportunities. The skills-forward approach says, “We are really good at X. What else can we do with X?”. However, if used exclusively, the company employing it will never be driven to develop fresh skills. Eventually the existing skills will become outmoded. …

Working backwards from customer needs often demands that we acquire new competencies and exercise new muscles, never mind how uncomfortable and awkward-feeling those first steps might be.”

 being Proactive

“One advantage — perhaps a somewhat subtle one — of a customer-driven focus is that it aids a certain type of proactivity. When we’re at our best, we don’t wait for external pressures. We are internally driven to improve our services, adding benefits and features, before we have to.”

 hosting customers daily:

“We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.”

 customer service:

“The best customer service is if the customer doesn’t need to call you, doesn’t need to talk to you. It just works.”

 aging customers:

“If your customer base is aging with you, then eventually you are going to become obsolete or irrelevant. You need to be constantly figuring out who are your new customers and what are you doing to stay forever young.”

 being competitor-focused vs customer-focused: 

“If you’re competitor-focused, you have to wait until there is a competitor doing something. Being customer-focused allows you to be more pioneering.

 pricing:

  • “I’m a big fan of all-you-can-eat plans, because they’re simpler for customers.”
  • “Our point of view is we will sell more if we help people make purchasing decisions.”
  • “You don’t want to negotiate the price of simple things you buy every day.”

banks:

“The one thing that offends me the most is when I walk by a bank and see ads trying to convince people to take out second mortgages on their home so they can go on vacation. That’s approaching evil.”

 Making Decisions:

On banks:

“The one thing that offends me the most is when I walk by a bank and see ads trying to convince people to take out second mortgages on their home so they can go on vacation. That’s approaching evil.”

On change:

“If you’re good at course correcting, being wrong may be less costly than you think. Whereas being slow is going to be expensive for sure.”

On intuition and analysis:

“All of my best decisions in business and in life have been made with heart, intuition, guts… not analysis.

“If you can make a decision with analysis, you should do so. But it turns out in life that your most important decisions are always made with instinct and intuition, taste, heart.”

On scaling failures:

“As a company grows, everything needs to scale, including the size of your failed experiments. If the size of your failures isn’t growing, you’re not going to be inventing at a size that can actually move the needle. Amazon will be experimenting at the right scale for a company of our size if we occasionally have multibillion-dollar failures.

“The good news for shareowners is that a single big winning bet can more than cover the cost of many losers.”

 Innovation:

On the anti-fragility of innovation:

“Because, you know, resilience – if you think of it in terms of the Gold Rush, then you’d be pretty depressed right now because the last nugget of gold would be gone. But the good thing is, with innovation, there isn’t a last nugget. Every new thing creates two new questions and two new opportunities.”

On being misunderstood:

“I believe you have to be willing to be misunderstood if you’re going to innovate.”

On being disruptive:

“Invention is by its very nature disruptive. If you want to be understood at all times, then don’t do anything new.”

On stubbornness and flexibility:

“If you’re not stubborn, you’ll give up on experiments too soon. And if you’re not flexible, you’ll pound your head against the wall and you won’t see a different solution to a problem you’re trying to solve.”

On balancing stubbornness and flexibility:

“The thing about inventing is you have to be both stubborn and flexible. The hard part is figuring out when to be which.”

On evolving:

“What’s dangerous is not to evolve, not to invent, not to improve the customer experience.”

On frugality:

“I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out.”

On being misunderstood:

“I believe you have to be willing to be misunderstood if you’re going to innovate.”

On growing a business: 

“There are two ways to extend a business. Take inventory of what you’re good at and extend out from your skills. Or determine what your customers need and work backward, even if it requires learning new skills. Kindle is an example of working backward.”

On experiments:

“It’s not an experiment if you know it’s going to work.”

On uncertainty:

“If you decide that you’re going to do only the things you know are going to work, you’re going to leave a lot of opportunity on the table.”

On serendipity:

“There’ll always be serendipity involved in discovery.”

On stubbornness and flexibility:

“If you’re not stubborn, you’ll give up on experiments too soon. And if you’re not flexible, you’ll pound your head against the wall and you won’t see a different solution to a problem you’re trying to solve.”

life (and prioritization):

On resourcefulness:

“Life’s too short to hang out with people who aren’t resourceful.”

On working for others:

“I don’t want to use my creative energy on somebody else’s user interface.”

On regrets:

“The framework I found which made the decision incredibly easy was what I called – which only a nerd would call – a ‘regret minimization framework’.

So I wanted to project myself forward to age 80 and say, ‘Okay, now I’m looking back on my life. I want to have minimized the number of regrets I have.”

Thinking Long-Term

On long-term thinking and invention:

“I don’t think that you can invent on behalf of customers unless you’re willing to think long-term, because a lot of invention doesn’t work. If you’re going to invent, it means you’re going to experiment, and if you’re going to experiment, you’re going to fail, and if you’re going to fail, you have to think long term.”

making money in the long-term:

“You can do the math 15 different ways, and every time the math tells you that you shouldn’t lower prices because you’re going to make less money. That’s undoubtedly true in the current quarter, in the current year.

But it’s probably not true over a 10-year period, when the benefit is going to increase the frequency with which your customers shop with you, the fraction of their purchases they do with you as opposed to other places. Their overall satisfaction is going to go up.”

 long-termism in life:

“Another thing that I would recommend to people is that they always take a long-term point of view. I think this is something about which there’s a lot of controversy. A lot of people — and I’m just not one of them — believe that you should live for the now.

I think what you do is think about the great expanse of time ahead of you and try to make sure that you’re planning for that in a way that’s going to leave you ultimately satisfied. This is the way it works for me. There are a lot of paths to satisfaction and you need to find one that works for you.”

 long-termism in company culture:

“You need a culture that high-fives small and innovative ideas and senior executives [that] encourage ideas. In order for innovative ideas to bear fruit, companies need to be willing to “wait for 5-7 years, and most companies don’t take that time horizon.”

 getting long-term minded people: 

“If you’re very clear to the outside world that you’re taking a long-term approach, then people can self-select in.”

 product missionaries:

“I strongly believe that missionaries make better products. They care more. For a missionary, it’s not just about the business. There has to be a business, and the business has to make sense, but that’s not why you do it. You do it because you have something meaningful that motivates you.”

 being counted on

“I think one thing I find very motivating — and I think this is probably a very common form of motivation or cause of motivation — is… I love people counting on me, and so, you know, today it’s so easy to be motivated, because we have millions of customers counting on us at Amazon.com. We’ve got thousands of investors counting on us. And we’re a team of thousands of employees all counting on each other. That’s fun.”

 success:

“The keys to success are patience, persistence, and obsessive attention to detail.”

On changing the world:

“I want to see good financial returns, but also to me there’s the extra psychic return of having my creativity and technological vision bear fruit and change the world in a positive way.”

Word-of-Mouth:

On great experiences:

“If you do build a great experience, customers tell each other about that. Word-of-mouth is very powerful.”

customer happiness:

“You know if you make a customer unhappy, they won’t tell five friends, they’ll tell 5,000 friends. So we are at a point now where we have all of the things we need to build an important and lasting company, and if we don’t, it will be shame on us.”

On physical vs internet comments:

“If you make customers unhappy in the physical world, they might each tell 6 friends. If you make customers unhappy on the internet, they can each tell 6,000 friends.”

 Branding reputation

“Your brand is what other people say about you when you’re not in the room.”

On earning reputation

“A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.”

Jeff Bezos’ favourite Emerson quote

“To laugh often and much; to win the respect of intelligent people and the affection of children; to earn the appreciation of honest critics and endure the betrayal of false friends; to appreciate beauty; to find the best in others; to leave the world a bit better, whether by a healthy child, a garden patch, or a redeemed social condition; to know even one life has breathed easier because you have lived. This is to have succeeded.” – Ralph Waldo Emerson

Jeff Bezos’ favourite quote on doing hard things: 

“We choose to [do these things], not because they are easy, but because they are hard.” – John F Kennedy, Rice Stadium Moon Speech

If you’re good at course correcting, being wrong may be less costly than you think.” — Jeff Bezos American entrepreneur Jeff Bezos is the founder and chief executive officer of Amazon.com and owner of ‘The Washington Post.’ His successful business ventures have made him one of the richest people in the world.

Love him or hate him, Jeff Bezos is one of the greatest success stories in entrepreneurial history. The man saw a need for books to be sold online, then burst through the door and turned Amazon into something much, much bigger. Today, Amazon is ubiquitous and its digital footprint is among the largest on the Internet.

Jeff Bezos was able to build Amazon into a titan because he rooted the concept for his business in principles of success. Herein, I share the five principles that turned Bezos into a billionaire, and perhaps provided you with “free” 2-day shipping on everything from bestselling books to HD televisions.

I decided I had to give it a shot. I didn’t think I’d regret trying and failing. And I suspected I would always be haunted by a decision to not try at all. After much consideration, I took the less safe path to follow my passion, and I’m proud of that choice.”

Recognize the importance of the choices you make. You’re always in control

…The difference between gifts and choices. Cleverness is a gift, kindness is a choice. Gifts are easy — they’re given after all. Choices can be hard. You can seduce yourself with your gifts if you’re not careful, and if you do, it’ll probably be to the detriment of your choices.”

We have the choice everyday to live by our values, or to fall victim to the numerous distractions that exist around us. If we have a clear game plan, which involves defining success and setting measurable goals, we just need to steel our mind to work hard and execute. We have that choice everyday, in both good times and bad.

Make the best, swiftest decisions

“Make high-quality, high-velocity decisions”

Bezos learned that if he ever wanted to get ahead in the rapidly evolving Internet age, he had to make quick, intelligent moves. One of his brilliant decisions was starting Amazon Web Services, then expanding further into advertising.

He could have stuck with the basics of selling goods, but Bezos saw the demand and the market for much more. He didn’t sit around. He struck while the iron was hot.

 Be Stubborn, but Be Flexible

“If you’re not stubborn, you’ll give up on experiments too soon. And if you’re not flexible, you’ll pound your head against the wall and you won’t see a different solution to a problem you’re trying to solve.”

The balance of staying the course, while knowing when to modify your approach, is the genius of every great businesswoman or man. You have to believe in yourself. You have to stick to your guns. But you also must be willing to change and shift course, or time will waste you. Bezos has built Amazon into an empire because he has incorporated both stubbornness and flexibility into his arsenal.

Know Who You’re Really Working For

“The thing that motivates me is a very common form of motivation. And that is, with other folks counting on me, it’s so easy to be motivated.”

You’re always working for yourself, but you’re also working for the people that mean the most to you. When there’s no safety net, there’s greater motivation and need to move forward with expediency and efficiency. Always keep in mind the people you support (your family) and the people who work for you (your employees). Put their interests first, and you’ll have raving fans and customers.

There’s a lot to learn from Bezos’ life story and the success of Amazon. These five principles help provide the framework for how and why one of the world’s richest men is where he is today. You can implement these exact same principles into your life and find tremendous success.

Thats why look at them……..for inspiration my friends

 

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