Who is Jeff Bezos?
Jeff Bezos Full Name is Jeffrey Preston Bezos born January 12, 1964. Is a First Centi-Billionaire in Forbes Wealth Index, Bezos has been the world’s richest person since 2017. He is best known for CEO and President of Online Retail Company Amazon. In September 2018, Forbes described him as “far richer than anyone else on the planet” as he added $1.8 billion to his net worth when Amazon became the second company in history to reach a market cap of $1 trillion.
15 Things to Learn From Amazon CEO Jeff Bezos
1. Be Obsessed about your Customers
Successful businesses sometimes have one factor in common, each worker is keen on making positive expertise for his or her customers. As an associate ideology, client obsession suggests that recognizing that those who have direct contact together with your customers on a commonplace square measure nearest to their success and their failures.
“I constantly remind our employees to be afraid, to wake up every morning terrified. Not of our competition, but of our customers. Our customers have made our business what it is, they are the ones with whom we have a relationship, and they are the ones to whom we owe a great obligation. And we consider them to be loyal to us — right up until the second that someone else offers them a better service.” – Jeff Bezos
It is attributable to this obsession that Amazon continues to thrive though it started method back once the net was still new. It modified the method customers interacted with and sets the benchmark of service quality and response.
2. In lean times, build a cash moat
Focusing on free income or otherwise giving your business some kind of money trench (whether through outside equity, debt stakes, or tight operations) can facilitate outride troublesome times once customers aren’t shopping for and/or finance has dried up.
If you’re able to maintain equanimity whereas others fall, you’ve got the chance to return out ahead and capture a way larger market share.
“The year 2001 will be an important one in our development. Like 2000, this year will be a year of focus and execution. As a first step, we’ve set the goal of achieving a pro forma operating profit in the fourth quarter. While we have a tremendous amount of work to do and there can be no guarantees, we have a plan to get there, it’s our top priority, and every person in this company is committed to helping with that goal. I look forward to reporting to you our progress in the coming year.” -Jeff Bezos
3. Measure your company by your free cash flow
Because “a share of stock represents a share of that company’s future cash flows,” free cash flow is the best possible metric for understanding financial success as a business.
Free cash flow should be prioritized because it is pegged to your company’s value both today and in the future.
“Why focus on cash flows? Because a share of stock is a share of a company’s future cash flows, and, as a result, cash flows, more than any other single variable, seem to do the best job of explaining a company’s stock price over the long term.” -Jeff Bezos
4. Build your business on your fixed costs
Companies driven by technology have an incredible advantage because much of their value hinges on fixed costs.
If you want to provide the best possible customer experience and the lowest possible prices in your industry, it’s only possible if you can make much of your customer experience expenses fixed.
“One of our most exciting peculiarities is poorly understood. People see that we’re determined to offer both world-leading customer experience and the lowest possible prices, but to some this dual goal seems paradoxical if not downright quixotic. Traditional stores face a time-tested tradeoff between offering high-touch customer experience on the one hand and the lowest possible prices on the other. How can Amazon.com be trying to do both?” -Jeff Bezos
5. Long-term thinking is rooted in ownership
If you wish to create a victorious company in the long run, build a corporation of householders.
With the mentality of a service supplier, you’ll ask for short-run gains and sacrifice future growth.
With the mentality of an owner, you’ll continuously act within the best interests of your customers and your team. In the end, the work you are doing acting as an owner can coincide with the interests of your shareholders
“Long-term thinking is both a requirement and an outcome of true ownership. Owners are different from tenants. I know of a couple who rented out their house, and the family who moved in nailed their Christmas tree to the hardwood floors instead of using a tree stand. Expedient, I suppose, and admittedly these were particularly bad tenants, but no owner would be so short-sighted. Similarly, many investors are effectively short-term tenants, turning their portfolios so quickly they are really just renting the stocks that they temporarily ‘own.’‘ -Jeff Bezos
6. Free cash flow enables more innovation
Prioritizing free income can enable you to experiment and initiate quickly, as capital won’t be pledged in investments that might be tangential by the time they’re paid off. In today’s fast-moving business setting, this can be essential to stay from falling behind.
“Though some may find it counterintuitive, a company can actually impair shareholder value in certain circumstances by growing earnings. This happens when the capital investments required for growth exceed the present value of the cash flow derived from those investments.” -Jeff Bezos
7. Don’t get fixated on short-term numbers
Some choices will be created with information, however several of the necessary business choices will solely be created with judgment.
Many opportunities with fantastic upper side won’t be within the short — to spot these, you’ve got to deem what makes the foremost sense for your customers.
“Math-based decisions command wide agreement, whereas judgment-based decisions are rightly debated and often controversial, at least until put into practice and demonstrated. Any institution unwilling to endure controversy must limit itself to decisions of the first type. In our view, doing so would not only limit controversy — it would also significantly limit innovation and long-term value creation.” -Jeff Bezos
8. Nurture your seedlings to build big lines of business
New business lines begin out as seedlings. Often, they won’t meaningfully contribute to revenue for several years. however if you’ve got the patience to nurture those seedlings, you’ll find yourself with powerful new revenue lines.
“In some large companies, it might be difficult to grow new businesses from tiny seeds because of the patience and nurturing required. In my view, Amazon’s culture is unusually supportive of small businesses with big potential, and I believe that’s a source of competitive advantage.” -Jeff Bezos
9. Missionaries build better products
When you’re making an attempt to create one thing completely new, rent missionaries.
Missionaries — those that square measure impassioned and sympathetic concerning product — square measure perpetually reaching to be higher equipped to disrupt existing incumbents.
“We started by setting ourselves the admittedly audacious goal of improving upon the physical book. We did not choose that goal lightly. Anything that has persisted in roughly the same form and resisted change for 500 years is unlikely to be improved easily. At the beginning of our design process, we identified what we believe is the book’s most important feature. It disappears. When you read a book, you don’t notice the paper and the ink and the glue and the stitching. All of that dissolves, and what remains is the author’s world.” -Jeff Bezos
10th of 15 Things to Learn From Amazon CEO Jeff Bezos
10. Work backwards from customer needs to know what to build next
Some corporations understand what to create next by puzzling over what they’re already smart at doing nowadays — a decent approach in some cases, Bezos says, however not continuously.
If you wish to thrill and amaze your customers and develop recent lines of business, want|you would like|you wish} to assume backward from what your customers need.
“’ Working backward’ 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?’ That’s a useful and rewarding business approach. However, if used exclusively, the company employing it will never be driven to develop fresh skills.” -Jeff Bezos
11. Focus on inputs — the outputs will take care of themselves
When you’re setting goals for a business or a product, target inputs you’ll management, not on money outputs.
Over the future, investment your effort within the components of the client expertise that you just will manage is what generates success for your company financially.
“Senior leaders that are new to Amazon are often surprised by how little time we spend discussing actual financial results or debating projected financial outputs. To be clear, we take these financial outputs seriously, but we believe that focusing our energy on the controllable inputs to our business is the most effective way to maximize financial outputs over time. . . . Our goal-setting sessions are lengthy, spirited, and detail-oriented. We have a high bar for the experience our customers deserve and a sense of urgency to improve that experience.” -Jeff Bezos
12. R&D should pervade every department
Software is ingestion of the planet, which implies that technology ought to infuse everything that you simply do as a corporation, in spite of your core ability.
With the speed at that technology advances and improves, investment in changing into a technical school company can allow you to move abundant quicker than your competition.
“And while many of our systems are based on the latest in computer science research, this often hasn’t been sufficient: our architects and engineers have had to advance research in directions that no academic had yet taken. Many of the problems we face have no textbook solutions, and so we — happily — invent new approaches.” -Jeff Bezos
13. Self-service platforms unlock innovation
A platform that others will use to get worth can perpetually be additional powerful than a controlled, walled garden that you simply manage and populate together with your own content.
Incentivize folks to use your self-service platform, and you’ll be able to build a way larger business than you’ll as a well-meaning gatekeeper.
“I am emphasizing the self-service nature of these platforms because it’s important for a reason I think is somewhat non-obvious: even well-meaning gatekeepers slow innovation. When a platform is self-service, even the improbable ideas can get tried.” -Jeff Bezos
14. Surprise and delight your customers to build long-term trust
In the short term, pocket money to deliver price higher than what your customers may fairly expect appearance bold — within the end of the day, it may be your competitive advantage.
Proactively transportation prices to your users and delighting them to build attachment and trust. Build enough of it, and you produce a reference to your customers that becomes laborious to interrupt.
“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. We lower prices and increase value for customers before we have to. We invent before we have to.” -Jeff Bezos
15. Decentralize decision-making to generate innovation
Innovation comes from distributed decision-making. top-down groups square measure effective at optimizing existing processes and implementing the completion of labor, however solely localised, bottom-up groups will systematically generate new concepts.
“We have the good fortune of a large, inventive team and a patient, pioneering, customer-obsessed culture — great innovations, large and small, are happening every day on behalf of customers, and at all levels throughout the company. This decentralized distribution of invention throughout the company — not limited to the company’s senior leaders — is the only way to get robust, high-throughput innovation.” -Jeff Bezos
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