Are you a business man seeking the secrets of many successful businesses out there? Here are 10 business lessons you must learn from Jeff Bezos
Jeff Bezos, founder, chairman, and CEO of Amazon, is one of the most inspiring entrepreneurs of our time. In addition to Amazon , Jeff Bezos founded Blue Origin, a commercial space company that plans to be the first private company to land on the moon. The capital of Amazon exceeded the threshold of one trillion US dollars, which exceeds the value of Google and Microsoft, and Jeff Bezos’ fortune is about 170 billion US dollars, making him the richest person in the world, even in the modern era. What are the tips Jeff Bezos and the summary of his experiences?
Read Also: 3 most important secrets of e-marketing
10 business lessons you must learn from Jeff Bezos
There are many lessons that we can learn from this unique personality, not only in business, investment and management, but also in everyday and personal life. We’ll show 10 of Jeff Bezos’ most important lessons and tips that can be learned from him, drawn primarily from Jeff Bezos’ annual letters to shareholders, an essential reference for the company’s employees, in which the founder and CEO of Amazon reveals some of the insights behind the successes of his pioneering company. Over the years, his speeches have become an important reference for entrepreneurs across the world.
1. Be stubborn in your visions and goals, flexible in details
According to Jeff Bezos, business people – and people in general – should be stubborn and resilient at the same time. Bezos says of Amazon’s philosophy:
We are stubborn in our vision, but flexible in the details.
You should stick to the vision and the desired goal, but at the same time you should be flexible in the methods and approaches to downloading the vision and achieving the goals, according to “Jeff Bezos”:
If you are not stubborn, you will soon give up experimentation and innovation. And if you’re not flexible, you’ll hit your head against the wall, and you won’t see another solution to the problem you’re trying to solve.
Easier said than done, applying this principle is not always easy, because the challenge is knowing when to be stubborn and not to compromise, and when to be flexible. A successful businessman is the one who knows how to differentiate between the things that he should be stubborn and stick to his opinion and ideas, and the things that he should be open to change and opposing opinions.
It is said that leaders are stubborn by nature, keen to take charge and get things done their way. This may be true when it comes to the vision and grand goals, but in terms of details, they are flexible and open to new ideas, and they do not hesitate to review themselves if they see that the path they are taking to their goals is impassable.
2. The Pizzatin’s Law
Advice from Jeff Bezos| The Pizzatin’s Law
One of Jeff Bezos’s advice is that small, independent teams are best (it may be rooted in his earlier work as a startup CEO). He believes in the “two pizza rule,” which means teams should be small enough for two pizzas. Practically, this means that the number of people should be between 5 and 7 people in the team.
Jeff Bezos believes that big teams are usually less efficient, and this lack of efficiency weakens team results and achievements and leads to waste. Therefore, he calls for the work teams to be small, and to be given the freedom to work and experiment.
We can see that such an approach has a problem, especially in large companies, because in a large company with hundreds or thousands of employees, the base of the two pizzas will necessarily lead to the creation of a very large number of teams, which may reach hundreds, and this raises the problem of controlling and directing those difference, as well as coordination between them. But if Amazon can implement this rule, which employs more than half a million employees, I think that the rule will be better for smaller companies and projects.
3. Constant innovation and experimentation
Lessons from Jeff Bezos| Constant innovation and experimentation
Some beautiful quotes from Jeff Bezos:
If you double the number of experiments you do annually, you will double your creativity.
Most CEOs would agree that experience is essential to their business, as it is the incubator and source of new innovation, and an important competitive advantage in the marketplace. Experience is indispensable in business. Auto companies are constantly experimenting with new technologies and designs, food companies are experimenting with new flavors, and pharmaceutical companies are experimenting with new drugs; As for technology companies, they are in constant pursuit of something new, and encourage their employees to innovate and experiment. For example, Google gives its employees 20% of their time at work to try new things and work on side projects.
The philosophy of “Jeff Bezos” has been reflected on Amazon, it is enough to take a look at the great diversity of products and services that Amazon offers, part of that is due to Bezos’s philosophy of experimentation and rapid innovation. From this perspective, “Jeff Bezos” can be considered a contrast to Steve Jobs , as the Apple company he founded only offers a few products, unlike Amazon, which offers dozens.
Jeff Bezos likes to describe his employees as pioneers and creators a lot, in addition to being an inventor and innovator himself, he is the founder of the space company Blue Origin , and he also holds some patents for some of his innovations, such as the airbag system for phones, or the solar fireplace he invented as a child And let’s not forget his most important innovation, the giant Amazon.
If you want to be a successful entrepreneur, no matter what field you work in, you should not be afraid to try new things, innovate and be creative . Innovation and innovators are driving the world forward.
4. Long-term thinking
about Amazon’s revenue growth, he didn’t remember the exact rate of growth, which is rare for a CEO, and when asked about it, he said:
I’m thinking a few years ahead. I have already forgotten these numbers.
Amazon has been around since 1994. At the time, computers were slow, and the internet was in its infancy, but Bezos has known since then that there will come a time when people buy what they need online. Jeff said those were some of the hardest days of his life. He was striving to raise a million dollars to found Amazon, and it was very difficult. He said he spoke to 60 people, and 22 of them answered, and they collected $50,000 for him.
But why was that so difficult? People then did not know what the Internet was.
“The first question most of these investors were asking was what is the Internet?” Bezos said.
To take advantage of Jeff Bezos’ advice, think about it for a moment, most people back then didn’t know what the Internet was. Nevertheless, Bezos was able to predict that in the future people would buy the products they needed from him, a lesson in long-term thinking.
Avoiding doing something early or a promising idea because it is bad in the short term is one of the mistakes many entrepreneurs make. Some ideas will not come to fruition immediately. Focus on long-term thinking and you will achieve better results, because short-term results are an unreliable indicator of long-term results. How many ideas stumbled at the beginning and received neither support nor expected success, and then succeeded.
5. Obsession with consumers
From Jeff Bezos’ consumer obsession
On Amazon, there is a famous saying:
Start with the clients, then work backwards.
Jeff Bezos says:
We are not obsessed with competitors, but we are obsessed with customers. We start with the customer, then work backwards.
Working backward is to start with the customers, their needs and their problems. This is in contrast to what some companies do, where they look for ideas, create products, and then hope customers will love them.
Here are some examples of Amazon focusing on the customer, prioritizing them, and sometimes even putting the customer’s interest above its short-term profits:
Helping customers avoid unintended duplicate orders
Amazon has noticed that some of its customers mistakenly order products that they have already purchased, so Amazon decided to help its customers by placing an alert on the pages of products that the customer has already purchased. After Amazon did its calculations, it noticed a drop in sales, but that didn’t stop it from continuing to help its customers avoid buying products they had previously bought by accident, as it believed that this would lead to increased customer loyalty to the company.
Allow competitors to advertise on your site
Another example of Amazon putting its customers’ interest over short-term profits is Jeff Bezos’ decision to allow competitors to advertise on Amazon and promote their prices. At first glance, this seems strange (perhaps because it is really strange), allowing competitors to advertise their prices on Amazon could weaken its competitive position, but Bezos insisted on that anyway, because he thought it would be better for customers. In this he says:
The decision was controversial within the company. There was great concern about him.
Offer more to customers without asking
When Amazon introduced Amazon Prime, a premium subscription-based service, it was in high demand, Bezos wrote in his 2012 letter, that customers were happy when Amazon added new features to the service, like movies and books, without costing them anything extra. This has made customers more loyal to the company.
Amazon gives its customers a great priority, and puts them above all considerations, and it even reached the point that it was giving compensation for goods whose prices fell after customers requested them, and perhaps this obsession with customers is what made Amazon what it is today, a giant company whose market value exceeds all economies Arabia.
6. Build your strategy on the things that won’t change
Base your strategy on the things that won’t change
One of the most important tips Jeff Bezos said at re: Invent 2012 “People often ask me the following question: “What will change in the next 10 years?” This is an interesting question and we hear it often. But no one asks the question: “What won’t change in the next ten years?” The second question for me is more important than the first, because you can base your strategy only on fixed things…
In the digital commerce space I work in, we know that customers want low prices, and I’m sure that won’t change 10 years from now. They want fast delivery, and they want variety. And I can’t imagine that 10 years from now, a customer will come to me and say,
“Jeff I love Amazon, but I’d prefer the prices a little higher, or I love Amazon, but I hope they deliver more slowly. It is impossible to imagine that in the future. So the efforts we’ve put into these things we know will pay off 10 years from now. When you are sure that something will not change in the long term, you can invest in it and build your strategy on it.”
What are the things that will not change for your project and your clients over the next 10 years? Take Bezos’ advice, focus on those things, and you will reap the rewards of your efforts in the future.
7. Start now so you don’t regret later
One of the worst feelings that a person can feel is regret. When Bezos was thinking about building Amazon, he had to make an important decision about whether to start his own business and found his own company, or keep his good job on Wall Street. Jeff Bezos based his decision on a concept he called, the Regret Minimization Framework.
It helped him realize that if he didn’t try and build his business, he’d regret it later. This fear of regret is one of the main reasons behind the decision to go ahead and start an Amazon business. Jeff Bezos said that when he wanted to make this difficult decision, he imagined himself at the age of eighty, he said that he knew then that he would not regret trying to establish his own company, and experimenting with his idea in this strange thing – then – called the Internet, and said that he did not regret Even if he fails, he may regret it if he never tries.
Read Also: 5 Reasons you should be Self Employed
8. If you wait and need people to support you in every decision you make, you will not succeed
If Jeff Bezos was waiting for people to support him in all his decisions, he would not have founded Amazon, at that time, the idea of creating a website for commerce on the Internet was a strange idea, and it seemed that it could not succeed, so that he found it very difficult to convince investors to fund his project . However, Bezos did not despair, and his resolve did not weaken simply because he did not receive the support his idea deserved, and he continued to dream, and quit his comfortable position.
If you wait and need people to support you in every decision you make, you will not succeed
One of the lessons and advice from Jeff Bezos that you can learn from him in a practical way is to look at it from this perspective, if all of your ideas are accepted by people, and they see them as logical, and they support them, then most likely those ideas will not make drastic changes, and will not open up new horizons, so what As long as people support it, a lot of them will probably beat you to it. And you will find fierce competition for it, but on the other hand, if you have an idea that seems strange to people, and they hesitate to support it, and you are convinced of its success, then perhaps that idea will change your life, and perhaps change the world, as many have done, such as Jeff Bezos and Mark Zuckerberg, founder of Facebook, Larry Page and Sergey Brin, founders of Google, and many others.
This does not mean that the traditional ideas that people support are not necessarily good, on the contrary, many of them are viable. What I mean here is that you have to chase your dreams, even if people see them as distant, or impossible, if you believe in them and you are sure of the success of the idea, So start and trust God Almighty.
9. Hold yourself and those around you to high standards
Sometimes it can be tempting to lower our standards to the standards of the customers we serve. If they are satisfied with a good or service we provide, we may see that that is sufficient, and there is no need to search for something better, or sometimes you may say that you do not have to do everything to the required standard, or always stick to the delivery time, customers will understand your mistakes and your mistakes.
If you add someone to a team that works to high standards, that person will adjust to those standards. And vice versa, if you add someone to a team with low standards, they will adapt and adopt those standards.
Even people with generally high standards must have weaknesses. Therefore, you must constantly raise your standards, always try to improve yourself, enhance your skills, and fix your frequent mistakes. For example, if you notice that you do not meet the deadlines in most of your projects, then fixing this should be a priority for you and your team.
10. Save yourself for the irreversible decisions
One of Jeff Bezos’ most valuable advice is that slow decisions kill innovation, writes Bezos in his 2015 letter. Learn to distinguish between choices that will lead you to the point of no return, and choices that can be reversed. Don’t waste too much time making reversible decisions, you can change course later if necessary.
Bezos says that an in-depth analysis of all decisions, as if they were all equal, can dissuade you from taking risks and experimenting. Focus your efforts on those choices that will take you in one direction and cannot be reversed later.
Be bold, have the courage, take a risk and don’t wait for the future to overwhelm you, but be involved in creating it yourself. This may be the most important Jeff Bezos tip we can learn from the richest man in modern history.
hope you learned a lot, share with friends.
Get a Quick link to all episodic stories Click here