10 Lessons from Great Businesses | The Generalist

Kazuki

Hatched by Kazuki

Aug 18, 2023

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10 Lessons from Great Businesses | The Generalist

In the world of business, there are certain lessons that can be learned from the greats. These lessons can provide valuable insights and guidance for entrepreneurs and leaders looking to make their mark. From recruiting to customer obsession, incentives to differentiation, here are 10 lessons from great businesses that can help pave the way to success.

Lesson 1: Be a painfully persistent recruiter

One of the key factors that set successful companies apart is their ability to hire the right people. Patrick Collison, the co-founder of Stripe, emphasizes the importance of being patient when it comes to recruiting. Stripe took six months to hire its first two employees, and the company has even taken three or more years to recruit certain individuals. Being persistent in the recruitment process can ensure that you find the best talent for your team.

Lesson 2: Obsess over pleasing your customers

While most companies care about serving their customers, very few are genuinely obsessed with pleasing them. To truly please your customers, you must obsess over them. This means going above and beyond to understand their needs, wants, and desires, and constantly striving to exceed their expectations. By doing so, you can build stronger customer affinity and improve customer retention.

Lesson 3: Start with incentives

When it comes to organizing your company and optimizing performance, incentives play a crucial role. Charlie Munger, the vice chairman of Berkshire Hathaway, once said, "Never, ever, think about something else when you should be thinking about the power of incentives." By aligning incentives with desired outcomes, you can motivate and reward your employees for their hard work and drive success within your organization.

Lesson 4: Think of your company as a nation-state

As technology continues to permeate every aspect of our lives, companies and protocols are acting as pseudo-nation states with significant impact and scope. Thinking of your work at a state or civilizational level may sound grandiose, but it can offer valuable comparisons and clear lessons. By considering the broader implications and consequences of your actions, you can make more informed decisions and drive meaningful change.

Lesson 5: Embrace innovation in storytelling

With online marketing becoming saturated, finding innovative ways to advance your brand's story is becoming increasingly valuable. Companies like OpenSea have recognized the importance of preserving optionality and building long-term value. By focusing on hosting a wide range of assets rather than owning a specific use-case, OpenSea has positioned itself for success in a rapidly evolving market. Finding unique ways to differentiate yourself and tell your story can set you apart from the competition.

Lesson 6: Focus on your strengths and outsource weaknesses

Great businesses understand the power of focus and prioritization. Rather than trying to do everything, they concentrate on intensifying their most pronounced advantage. Tiger Global Management, for example, outsources its due diligence to consulting firm Bain, allowing them to focus on their strengths: moving quickly and leveraging their extensive knowledge of successful business models. Red Bull takes a similar approach by outsourcing the production of its beverages, allowing them to focus entirely on marketing. By deepening your advantages and outsourcing commoditized operations, you can enhance your competitive edge.

Lesson 7: Define yourself by what you're not

Sometimes, the best marketing strategy is to define yourself by what you're not. Telegram, for instance, has positioned itself as a user-friendly private alternative to Facebook's surveillance state. This counter-positioning became even more effective once WhatsApp was acquired by Facebook, allowing Telegram to extend the same argument to its most direct competitor. By highlighting what sets you apart from the competition, you can attract a unique audience and carve out your own niche.

Lesson 8: Embrace reinvention and disruption

Great businesses never sit still. They are constantly in a state of reinvention and internal disruption. By embracing change and constantly seeking new opportunities, you can stay ahead of the competition and protect against displacement. This mindset allows companies to explore new markets, develop innovative products and services, and adapt to evolving customer needs.

Lesson 9: Identity dispersion in the digital age

As we navigate the digital age, the concept of identity is undergoing a transformation. Balaji Srinivasan, a technology entrepreneur, envisions a future where individuals have control over the creation, separation, and unification of their multiple online selves. This identity dispersion allows individuals to experiment with pseudonyms and engage with various communities. It also provides a platform for marginalized individuals to find communities that embrace their unique identities.

Lesson 10: The value of pseudonymity

As pseudonyms become more verifiable in the web3 era, they gain value. Pseudonyms can verify inventory and history, making them valuable assets in the digital world. However, it's important to acknowledge that pseudonymity also enables trolls and opens up new challenges. Striking a balance between anonymity and accountability is essential for creating a pseudonymous future that fosters meritocracy and allows individuals to express their ideas freely.

In conclusion, these 10 lessons from great businesses offer valuable insights into the strategies and mindsets that drive success. From recruiting to customer obsession, incentives to differentiation, embracing innovation to embracing reinvention, there are actionable takeaways for entrepreneurs and leaders looking to make their mark. By incorporating these lessons into your own business journey, you can position yourself for success and drive meaningful impact in the ever-evolving business landscape.

Actionable Advice:

  • 1. Prioritize patience in the recruitment process and be willing to take the time to find the right talent for your team.
  • 2. Go above and beyond to understand and exceed your customers' expectations, cultivating stronger relationships and improving customer retention.
  • 3. Embrace innovation in storytelling to differentiate yourself in a saturated market, finding unique ways to advance your brand's story and capture attention.

Sources:

  • "10 Lessons from Great Businesses | The Generalist"
  • "When we design our identities from scratch"

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