As we already discussed the world’s richest person of 2019 according to Forbes Jeff Bezos the founder of Amazon the largest online product selling website. Jeff Bezos is an American investor and entrepreneur and his current net worth is 12,110 crore USD and he is the richest man in the world.
As we all know Jeff Bezos had a great experience in management because he started his business by a small garage and now he is the world’s richest person. So here we are discussing the top 15 business lessons by Jeff Bezos which every business should apply in their business or startups.
1- Sell the solution to a need
When designing his business model Jeff built down the shopping into the basics he released wasn’t a business is what you are selling but rather proving a service selling he explains that “we are not making the money when we sell the products or thing but we make money when we help the customer make purchasing decisions” making money is no longer just about selling thing, selling time or service but it becomes about making people lives easier. Amazon helps the customer to cut the marketing noise and make a purchasing decision.
2- Don’t stall on making decisions, Decentralize and move fast
One thing Bezos can be accused of its stalling. He can change direction on time and this has been the strength of Amazon and what leads to his market domination how he achieves that a business management structure that is decentralized. Cutting out the red tape is allowed the businessman, expert, and innovator to honor the company’s passion for pioneer and inventing. According to Jeff Bezos ” This decentralized distribution of invention throughout the company- not limited to the company’s senior leaders- is the only way to get the robust, high-through innovation.
3- Don’t get caught up in the small decisions.
Hire experts and give them power to make them for you. What Jeff was today because he believes in the policy of Don’t sweat the small stuff and in this fast world decisions need to be made quickly. Bezos has a policy of not deliberately meaninglessly decisions that are irreversible this freeze up him and top management to make a big decision that matters with methodical and careful research.
However irreversible decisions are few and far between according to the Bezos who see most decisions as to ardor as he explains that these decisions can and should be made quickly by high judgment individuals or small groups.
Also Read : Business lessons from Elon Musk
4- Be stubborn but flexible
Bezos is kind of a man that has an entrepreneurial spirit for leads to be an innovation success. Innovation takes a lot of experimentation and experimentation requires a decent helping of stubbornness to see through without it innovators with simply give up to soon but this stubborn superpower made the balance of flexibility. According to Jeff that’s the difference between true visionary breakthrough and doing the same thing again and again out of stubbornness. A flexible mindset will help you achieve this.
5- Be your own biggest competition
It is better to create a new product that vibes out all your old product then to intellectual competitors do it for you. Jeff doesn’t plan on resting and stated that “he is constantly in pursuit of how to move with the market” It’s his passion to push innovations that allow Amazon to stay on the top. So you have to update your product or service in a market.
6- Built where there is improving infrastructure
When Jeff Bezos founded amazon began with selling the books online and in that era the internet is slow, home computer saturation is low and online payments were complicated but he knew that infrastructure is improving after some time and in 1999, he is predicting this growth.
He also says that “Further improvement will lead to always-on access which I expect will be a strong boost to online shopping at home, as opposed to the office and we will significant growth in non-PC devices and wireless access and we have market size unconstrained opportunity in an area where the underlying foundational technology we employ improves every day. That is not normal.”
7- Self-service is the mother of invention
If you want to allow a true innovation according to Bezos you need to move the gatekeeper that slow innovation his platform is fast but in no way is in militant approach to buyers or sellers. The seller field is important to have the right consumer allowing sellers to innovate their self-service nature and probable ideas to be tried at little or no cost.
8- Experiment and then experiment again
Bezos has a strong experience of experimentation. He count as an imperative business model. According to Bezos “If you doubled the number of experiments you do per year are going to double your inventiveness.” He doesn’t see something to do because all the top tech companies do it. He sees it integral to business access.
Also Read : Interesting facts about Jeff Bezos
9- Cash is king
In the world of equity and bitcoin it is easy to forget the value of loyalty cash. But according to Bezos cash flow is the greatest indicator of company stock price over the long term. Bezos focused on the importance of cash earlier on so it usually had to access innovation cycles or market down terms. In 2001, he took a bold first step to achieving a proforma operating profit he got everyone on board to see the vision through.
10- Share values of your shareholders
From earlier on the days of amazon on Bezos was the clear set the values to find his business and guided his approach his emphasis on long term growth helped to make the decisions that are seen in amazon’s current success. The most important measurement of their success is customer & revenue growth. By this long term vision of Jeff Bezos he makes the amazon company the world’s largest online selling website and his customers are always satisfied with him and their shareholders also.
11- Find your profit in your fixed costs
You think that the business like amazon would be fixed in it valuable cost but Jeff believes in building businesses based on fixed cost. Valuable costs are costs associated with sales. So amazon’s case this is delivery cost, labor packing cost and transactional cost, fixed cost, and items like software and office rentals, insurance, and interest. Amazon can offer high service by focusing on fixed cost like software development, a website which increases customer satisfaction.
12- A new race for space is underway and Jeff is hoping to win
It’s no surprise that Bezos has gravitated towards space exploration by now maybe he feels like the richest man in the world is some limited his need to expand beyond the current frontiers being realized to his space travel company “Blue Origin” he aims to manufacture world rotating to create the artificial gravity with centrifugal force to put it simply giant floating glass things fabricated worlds with colonies of people living and working inside them. It’s a race try to win and he was neck in neck with Elon Musk. Musk has his eye on mars as the end goal for the second earth civilization.
Also Read : Success story of Jeff Bezos
13- Think long term in terms of the numbers
When it comes to the numbers think long term. When Bezos considered the numbers he thinks long term if it’s the decision might be seen daring at first but he believes his customer and shareholders love it then he signs for the long term. In his words, Math based decision command wide agreement whereas judgment base decisions are widely debated and often controversial at least in practice and demonstrated.
14- Work backward from your customers needs
Amazon is a model around the customer’s needs in fact sometimes they seem to know about what we need before we do. We didn’t until we realize we need delivery on the same day until he had it and now it is indispensable kind of like the way realize we needed the marvelous. But thanks to amazon prime, because they follow the skills forward approach in a market where customers can easily move along.
15- Don’t wait for crises to improve
Jeff Bezos is suddenly humble in his approach to the customer he realizes that they are loyal only in a better service on offer He understands it is a great privilege they are loyal and feels a great oblige to continue to serve them as best as he can. Amazon adds values, features, and benefits as they improve there service to customers.
Also Read : How Jeff Bezos strongly built Amazon