Secrets of Highly Successful Entrepreneurs: Creating Sticky Products and Making Better Decisions

Glasp

Hatched by Glasp

Sep 08, 2023

5 min read

0

Secrets of Highly Successful Entrepreneurs: Creating Sticky Products and Making Better Decisions

Introduction:

In the fast-paced world of entrepreneurship, success is not just about having a great idea or being a hard worker. It's about understanding how to create sticky products that keep users engaged and making better decisions that can propel your business forward. In this article, we will explore the common points between successful entrepreneurs like Facebook's Sarah Tavel, billionaire investors Charlie Munger, Warren Buffett, Ray Dalio, and tech visionaries like Steve Jobs, Jeff Bezos, Reid Hoffman, Elon Musk, and Sara Blakely. By combining their insights, we can uncover actionable advice that can help entrepreneurs thrive in today's competitive landscape.

Creating Sticky Products:

Sticky products are those that users find hard to leave due to the accruing benefits and mounting loss they experience. Sarah Tavel, a prominent figure at Facebook and Evernote, explains that sticky products leverage the data users create while engaging with the product to make the experience even more engaging for them. This creates a cycle where the more users use the product, the better it gets.

To achieve this, successful entrepreneurs understand the importance of leveraging both explicit and implicit actions. By combining these two types of user actions, entrepreneurs can create strong accruing benefits. For example, platforms like Facebook allow users to accrue followers and experience the loss of leaving behind the investment they made in their followers. By focusing on identity and creating a sense of dependence, entrepreneurs can make their products sticky.

Making Better Decisions:

  • 1. Analyze what can go wrong: Billionaire investor Charlie Munger advises entrepreneurs to think about what can go wrong instead of solely focusing on what can go right. By considering potential pitfalls, entrepreneurs can take proactive steps to avoid failure. Munger suggests listing the ways a project could fail, assigning probabilities to each possibility, and prioritizing actions that can be taken to avoid failure. Being both pessimistic and optimistic is better than just being optimistic.
  • 2. Use checklists to avoid stupid mistakes: Warren Buffett believes that there are two types of mistakes: ignorant mistakes and stupid mistakes. Ignorant mistakes happen when you don't know better, while stupid mistakes happen when you do know better. Buffett attributes his success to avoiding stupid mistakes by religiously following basic tenets and ideas he knows will work. By using checklists, entrepreneurs can ensure they don't overlook important details and make avoidable mistakes.
  • 3. Learn how to think independently: Ray Dalio, another billionaire investor, emphasizes the importance of thinking independently to outsmart the competition. By becoming the best in one core area and continually investing in it over time, entrepreneurs can develop a competitive edge. Dalio advises entrepreneurs to build deep relationships with people who have accomplished their goals, learn from other fields, and develop an analytical advantage. By accessing the 'dark net' of information that exists in people's heads, entrepreneurs can gain valuable insights and think independently.

Creating Compelling Vision:

Successful entrepreneurs understand the power of storytelling to make their vision more compelling. Steve Jobs, co-founder of Apple, believed that storytelling could transport others into a whole other world and significantly alter their beliefs. By telling stories that evoke emotions and reduce the ability to detect inaccuracies, entrepreneurs can paint a vivid picture of their vision. This goes beyond mission-speak on a corporate website and captures the essence of what the company aims to achieve.

Investing in What Will Not Change:

Jeff Bezos, founder of Amazon, advises entrepreneurs to invest in what will not change instead of solely focusing on what will change. By identifying fundamental human needs and desires that remain constant, entrepreneurs can build businesses that can withstand the test of time. Bezos highlights the importance of constantly improving customer experience by delivering products cheaply, easily, and quickly. By focusing on what will not change, entrepreneurs can build a strong foundation for their businesses.

Building Deep Relationships:

Reid Hoffman, founder of LinkedIn, believes in the power of building deep, long-term relationships. Hoffman suggests that in the information age, building a network is more valuable than simply being better at searching online. Accessing the 'dark net' of information from people who have accomplished what you aspire to achieve can provide valuable insights and help entrepreneurs think independently. Hoffman advises entrepreneurs to be picky about whom they spend time with and invest the time to build strong relationships.

Making Better Decisions with Decision Trees:

Elon Musk, co-founder of SpaceX and Tesla, emphasizes the use of decision trees to make better decisions. Decision trees can help entrepreneurs avoid risky bets that are unlikely to succeed. By considering all potential outcomes and assessing the probability of success, entrepreneurs can make informed decisions. Musk warns against taking risks that could destroy everything and emphasizes the importance of avoiding "Russian roulette" risks.

Embracing Failure:

Sara Blakely, founder of Spanx, encourages entrepreneurs to train themselves to love failure rather than fear it. Blakely believes that failure holds hidden gifts and nuggets of wisdom that can propel entrepreneurs forward. By reframing failure as an opportunity for growth and learning, entrepreneurs can overcome setbacks and keep moving towards success.

Conclusion:

In conclusion, successful entrepreneurs understand the importance of creating sticky products, making better decisions, crafting compelling visions, building deep relationships, investing in what will not change, using decision trees, and embracing failure. By incorporating these insights into their entrepreneurial journey, aspiring entrepreneurs can increase their chances of success. Actionable advice derived from these insights includes analyzing potential pitfalls, using checklists, thinking independently, storytelling, focusing on what will not change, building networks, using decision trees, and reframing failure. By implementing these strategies, entrepreneurs can navigate the challenges of the business world and achieve their goals.

Hatch New Ideas with Glasp AI 🐣

Glasp AI allows you to hatch new ideas based on your curated content. Let's curate and create with Glasp AI :)