Jeff Bezos is the founder and CEO of Amazon, one of the most successful companies in history. He has built an empire by focusing on customer service, innovation, and efficiency. Here are 15 lessons you can learn from him.
Jeff Bezos is the founder and CEO of Amazon. In this article, I will discuss 15 business lessons that you can learn from him.
So, at the age of 49, what does it take to build the world’s biggest online retailer, acquire a personal fortune of over $25.2 billion, and rank among the world’s Top 30 Most Powerful people?
Let’s ask Jeff Bezos a question.
The business that began in a garage has now revolutionized the way we purchase books and just about everything else.
In the process, he’s created a $100 billion empire centered on books, eliminating small bookshops. Most people would think it’s terrible. However, others believe he is changing the whole business. Amazon is currently one of the top 100 businesses in the United States.
Founder and CEO of Amazon
I’ll tell you about Bezos’ incredible tale and life lessons that Fortune and Forbes didn’t tell you about in their cover article.
This is something you could immediately use to your own company.
If there’s one thing you should know about Bezos, it’s that he’s a customer-obsessed man.
“I can assure you that we’ve been doing this from the beginning, and it’s the only reason Amazon.com exists in any shape today. We’ve always prioritized our customers. When given the option of worrying about rivals vs obsessing over consumers, we always choose the latter.”
Amazon continues to flourish as a result of this passion, despite the fact that it began when the internet was still in its infancy. It revolutionized customer interaction and established a new standard for service quality and responsiveness.
“You could create an internet shop that would not be possible otherwise. Customers appreciate variety, so you could create a real superstore with an extensive selection.”
“The single most essential thing is to relentlessly concentrate on the consumer. Our ambition is to be the most customer-focused business on the planet.”
Amazon’s greatest advantage is that they take pleasure in their customer service:
“If there is one reason we have outperformed our Internet rivals over the past six years, it is because we have laser-like concentration on user experience.”
Bezos worked at Fitel, a start-up, after graduating from Princeton University with a degree in computer science and electrical engineering, and then at a Wall Street Investment Bankers Trust, where he rapidly ascended to the position of Senior Vice President.
During those times of professional advancement, he found that use of the nascent World Wide Web was growing at a rate of 2,300 percent each year. As a result, he started to do a strategic analysis of the top mail-order companies, with the knowledge that the web will soon replace the mail order.
He could see what was about to happen. And he saw the value of being ahead of the game. To be really successful, Andrew Carnegie, John D. Rockefeller, and JPMorgan had to create a whole industry, as did their predecessors (Andrew Carnegie, John D. Rockefeller, and JPMorgan).
“If you opt to do just what you know will work, you’ll be missing out on a lot of opportunities.”
If you do not take a chance on your dreams, they may never come true. If you’re willing to take a risk, you can get the ideas you need to transform your life.
But there’s another frequent misunderstanding about taking risks: we don’t just leap into anything without giving it any thought or consideration. This kind of thinking almost always results in failure.
Risk is something that good entrepreneurs dislike, therefore they try to avoid it whenever possible… Starting a business is risky enough, and then you have to systematically eliminate risk in those early days….you have to systematically identify risk, and then as the company grows and becomes more stable, you can start taking risks again, but in those early days, a lot of it is about ‘okay, I have a good idea, how do we reduce risk?’”
Bezos, for one, thought about it a lot and done his research. He is fully aware, though, that there is a possibility it will fail.
In 1994, Jeff Bezos had to choose between quitting his high-paying career as a hedge fund manager in New York City and starting an online bookshop that had the potential to be enormous or fail miserably.
He then developed the Regret Minimization Framework, which helped him understand that he didn’t want to regret not taking a risk on his idea in the future. So he decided to give it a go…
“I knew I wouldn’t be sorry if I failed, but I also knew the one thing I may be sorry for is not trying.”
“The structure I discovered that made the choice extremely simple was what I termed a ‘regret minimization framework,’ which only a geek would name it. So I wanted to see myself at the age of 80, looking back on my life and saying, “OK, now I’m looking back on my life.” I’d want to have had as few regrets as possible.’
Bezos launched Amazon.com in 1995 and instructed his hundreds of beta testers to spread the word. There was no advertising, and there was no press. The business has sold books in all 50 states and 45 countries within 30 days.
For the love of God, don’t try anything new if you don’t want to be ridiculed.
Human nature’s greatest incentive to learn is fear. As an entrepreneur, you’ll be OK if you’re prepared to accept failure as part of your job description.
John Trobough explains it this way: “All entrepreneurs must believe in themselves, but they must also be ready to lose everything.” Survival is the most driving factor.”
As an entrepreneur, you must expect to fail. So, as long as you don’t over-emphasize it in your everyday decision-making, you’ll never be scared to make the superior choice.
“We are prepared to walk down a lot of dark alleys in the hopes of finding something that works.”
It’s all part of Amazon’s corporate culture. Here are some of Amazon’s blunders:
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“It’s alright, however, if you’re ready to be misunderstood for a long time, if you’re willing to fail, then you may increase your pace of experimenting. So successful innovations are those that consumers are interested in. It’s really very simple to come up with fresh products that consumers don’t care about. But if you want to do a lot of successful invention, you basically have to increase your rate of experimentation, which you can think of as a process – how do you go about organizing your systems, people, all of your assets, your own daily life and how you spend time to increase your rate of experimentation? Because not all of your experiments will be successful.”
In other words, you must consider the potential advantages in terms of years or decades. How long do you believe it took Amazon to become profitable? Several months? Is it really a year?
It took more than six years for Jeff Bezos and Amazon.com. Despite this, the firm only earned a $5 million profit on a roughly $1 billion investment.
Obviously, long-term thinking requires an ocean’s worth of patience. However, Bezos was not in a rush to earn a fast profit since he wanted to keep prices low and reinvest as much profit as possible.
In 2011, Bezos told Wired, “If everything you do has to function on a three-year time horizon, then you’re competing against a lot of people.” “However, if you’re prepared to spend over a seven-year period, you’re only competing against a fraction of those individuals, since very few businesses are willing to do so.”
This is no simple task, particularly if you’re the CEO of a Fortune 500 corporation with investors on your tail. It necessitates you being misunderstood over an extended length of time.
“Being misunderstood is something we’re used to. We’ve got plenty of opportunities to practice.”
In the near term, this delayed gratification approach irritated investors, but it paid off handsomely when Amazon survived the dot-com boom and began reporting higher profits year after year.
We can’t reach our full potential as individuals or businesses unless we prepare for the long term.
“The problem with creating is that you have to be obstinate and adaptable at the same time.”
Great entrepreneurs, according to Bezos, need these two conflicting qualities in order to thrive. Most people believe it is difficult to be both obstinate and adaptable at the same time, yet Amazon has done just that. Amazon CEO Jeff Bezos explains:
“If you’re not tenacious, you’ll abandon experiments much too quickly. You’ll pound your head against the wall if you’re not adaptable, and you won’t see a new approach to an issue you’re attempting to solve.”
Stubbornness and adaptability, like Yin and Yang in Chinese philosophy, are conflicting energies that may be very strong if they can co-exist. Everything in life is essentially the same. Anti-matter is required for matter to exist, and so forth.
Bezos didn’t have a marketing budget when he launched Amazon. His firm could only stand out if they gave their customers a cause to tell their friends about them.
And what better way to do it than to provide a fantastic and memorable experience that entices consumers to share and tell others about it?
“If you provide a fantastic experience, consumers will tell their friends about it. The power of word of mouth is enormous.”
How do you boost both your productivity and your creativity at the same time? We’ll utilize Jeff Bezos’ famous “two pizza rule” to determine the size of a team. Bezos claimed he believed in “two pizza teams”: a team was too large if it couldn’t be fed with two pizzas.
The reality is that organizations may suffer from a condition known as “groupthink,” which means that they lose each individual’s originality as a result of agreeing with one another.
According to a Wall Street Journal feature,
At an offsite retreat where some managers recommended that workers start talking more with one another, Mr. Bezos jumped up and said, “No, communication is horrible!” according to one former executive. He desired a decentralized, if not chaotic, organization in which individual ideas would triumph over groupthink.
Bezos’ school of thinking is based on the basic premise that big teams are inefficient. It may be due to a number of reasons, including a weak link, a self-proclaimed leader who lacks team acceptance, or even a reliance on one another.
The idea is to keep teams small enough so that they may focus on individual brilliance and innovation.
Companies are often searching for methods to increase profits by reducing costs and increasing pricing. However, Amazon’s success has always been the consequence of Bezos’ personal preoccupation with putting his customers’ needs ahead of his own.
If Amazon raised prices tomorrow, it would make more money, but instead, Bezos is looking for methods to reduce expenses and improve cost-effectiveness so that he can charge his consumers even less.
“There are two types of businesses: those who strive to charge higher prices and those that strive to charge lower prices. The other will come in second.”
- When the expense of television advertising became too high for Bezos’ consumers to justify, he dropped it, despite the fact that the commercials increased sales.
- They provided “Free delivery” on purchases of $25 or more since they understood that the expense of shipping was preventing many consumers from buying online. While it was clear that doing so would harm them, the flip side was that they had unintentionally boosted consumer loyalty. They couldn’t quantify or measure it, but the logic and rationale were there, and the consequences speak for themselves now.
- The Grand Design of Amazon Prime: According to WIRED, “every Prime member is roughly 8 times as valuable to Amazon as a non-Prime member.” That is, Amazon earns so much money from Prime subscribers that the business would still make money even if the fees were slashed by hundreds of dollars.
“Not evolving is the most hazardous thing you can do.”
Amazon began as an online vendor of e-books, but it has never stopped growing horizontally since then.
The polar opposite of Apple is Amazon. Rather of concentrating on a few core items, like Apple does, Amazon sells almost everything.
By attempting to construct a 10,000-year clock with $42 million of his own money, Bezos may be viewed as attempting to do so in many aspects of his life and company. Blue Origin is one of his other side ventures (a super secretive aerospace company)
It is clear that Bezos’ school of thought is focused on long-term planning, which would need innovation. You can gain a peek into the thinking of a Maverick if you read about his side ventures carefully.
His presentation at re: invent;
Always position yourself and wait for the wave, rather than chasing the hot thing. And the way to accomplish it is to choose a subject that you are enthusiastic about. That is the most important piece of advise I would offer to someone who wants to establish a business or a new venture inside a larger one. Make sure it’s something you’re enthusiastic about and something you’re interested in. Missionaries create superior goods… I’d rather be a missionary than a mercenary. Mercenaries want to flip the business and make a lot of money, whereas missionaries want to create a wonderful product or service – and one of the ironies is that missionaries typically make more money in the end…….pick something you care about.”
“There are two methods to grow a company. Make a list of what you’re excellent at and see where your abilities may take you. Alternatively, figure out what your consumers want and move backwards from there, even if it means acquiring new skills.”
Bezos continues, “This has become the touchstone of how we create things,” citing the Kindle e-book reader as an example.”
After all, Amazon was an internet store. But, seeing that Amazon’s customers needed a method to read the e-books they were buying, he and his team chose to go backwards to fulfill that demand. Finally, they had to figure out how to create an electrical mobile device, which was no simple task.
In 2007, when Amazon finally launched the first generation Kindle, it sold out in less than six hours. Kindle continues to dominate the e-reader industry, with weekly sales exceeding a million dollars.
You’re a fool if you don’t understand both your adversary and yourself. The Art of War by Sun Tzu.
“We keep an eye on our rivals, learn from them, see what they’re doing for consumers, and replicate as much as we can.”
“Good artists borrow; great artists steal,” according to a quote attributed to Pablo Picasso. If you’re wondering how it’s possible, the answer is that it is.
A brilliant artist may take someone else’s concept and make it better than the original. “Good artists copy, great artists steal,” remarked Steve Jobs.
If you believe in your idea as much as Jeff Bezos did in 1994, there will always be others who don’t understand it. Maybe your concept is simply too revolutionary, in which case you’ll need a lot of patience and perseverance to see it through.
Did you realize that Amazon has been in business for almost two decades? Do you recall how things were with computers and the internet back then? Would you have known that the World Wide Web was becoming worldwide back then? I’m afraid not.
Back then, Bezos could see that people would be using the internet to purchase goods and place orders. He has said that they were some of the most difficult times in his career as an entrepreneur. He was attempting to raise $1 million in order to launch Amazon. At times, getting that $1 million felt impossible.
He said that he would speak with dozens of individuals and that just a handful would offer him a total of around $50,000.
What was the source of the difficulty? People were unaware of the internet’s existence. “The first thing most of them [investors] had was, ‘What is the internet?’” Bezos remarked. Consider this: most people have no idea what the internet was. Bezos did, and he understood that millions of people would be shopping on the internet. That was how certain he was of his vision.
“Think about the long period of time ahead of you and make sure you’re preparing for it in a manner that will leave you pleased in the end.”
“I am often asked, ‘What is going to happen in the next ten years?’ And it is a fascinating topic, as well as a pretty frequent one. I virtually never am asked, “What will not change in the next ten years?” And I believe the second issue is the more significant of the two, because you can create a company strategy around things that are stable over time….with our retail sector, we know that consumers desire cheap pricing, and I know that will be true in ten years. They expect quick delivery and a large variety. It’s hard to picture a consumer approaching you ten years from now and saying, “Jeff, I love Amazon, but I wish the pricing were a bit higher [or] I love Amazon, but I wish you delivered a little slower.” [Imagining such future] is impossible. So the work we put into those things, spinning them up, we know that the energy we put into it now will pay us rewards for our consumers in ten years. You can afford to invest a lot of energy into something you know is true, even if it is for the long term.
Bezos was perhaps one of the most underappreciated CEOs a decade ago. He is now one of the most well-liked people. Because Steve Jobs was present at the time, he probably doesn’t receive enough credit for what he does. But it seems that the throne of the crown has finally fallen to him. Jeff Bezos, who was named Fortune’s 2012 Businessperson of the Year and was also named one of Forbes’ America’s Best Leaders, is a pro-customer, risk-averse risk-taker, and visionary who will be remembered for his work.
There is so much more we can learn from him that I couldn’t possibly list it all, so please leave a comment if you have anything to contribute regarding his ideas, ideals, or suggestions. I’m looking forward to a nice discussion on one of the world’s greatest mavericks.
Jeff Bezos is the founder and CEO of Amazon. He has been in the business for over 20 years, and he has learned a lot in that time. Here are 15 lessons you can learn from him. Reference: jeff bezos inventions.
Frequently Asked Questions
What are the five important strategies for lessons from Jeff Bezos?
There are many strategies that Jeff Bezos has taught, but these five are some of the most important. 1) Focus on whats important to you 2) Learn from others 3) Be a serial entrepreneur 4) Think big picture 5) Build a great team
What was Jeff Bezos business idea?
Jeff Bezos is the founder and CEO of Amazon.com, which he started in 1994. He had a business idea to sell books online and revolutionize retail.
What was Jeff Bezos inspiration for Amazon?
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