Play your cards one at a time

Everything in business is unpredictable. You cannot predict whether you’ll win or lose until the end. So don’t play your cards before you have to. Save you best cards for when you need them, rather than fritter them away assuming you’ll already won. Everything is a long game. Don’t rush. Play your cards one at…

Read More

Are you a leader or a boss?

A leader is someone that people follow because they want to. A boss is someone that people follow because they have to. A leader asks the opinions of her team before making a decision. A boss doesn’t care for the opinions of her team. A leader never leaves a man behind. A boss thinks of…

Read More

You can’t fight the market

Back in the 80’s, Nintendo had 90% share of the video games market. They completely dominated, with  Sony bringing up the rear by a long shot. But then CD’s came along. All the game developers preferred making games on CD’s. But, instead of adopting CD’s for their game consoles, Nintendo insisted on persisting with cartridges-only….

Read More

How to prioritise what matters

* From Farnam Street There are two types of decision: Irreversible and inconsequential The latter are a great training ground for decision-making. Mistakes don’t hurt, so you can delegate and give your team opportunities to make their own decisions. The former require time, effort and focus. Before making irreversible decisions, spend time gather evidence and information….

Read More

Don’t judge your future by your past

Just because you’ve always had 5% bad debt, doesn’t mean you’ll have 5% bad debt going forward. Just because you’ve always had 50% sales growth, doesn’t mean you’ll have 50% sales growth going forward. Just because you’re always been a winner, doesn’t mean you’ll be a winner going forward. Extrapolating future results based on history…

Read More

Don’t create false hope

Don’t lend money to people who can’t pay you back. Don’t give a job to someone who can’t do the job. Don’t give a training certificate to someone who hasn’t learnt the skills. All you’re doing is creating false hope, and false expectations. At the very least you’re going to hurt the other person, at…

Read More

Do you have velocity or speed?

Velocity and speed are different things. Speed is the distance traveled over time. You can run around in circles with a lot of speed and cover several miles that way, but you’re not getting anywhere. Velocity measures displacement. Velocity is direction-aware. You need to be focusing on velocity, not speed. Think about the direction you…

Read More

Too many options can be bad

Don’t give your customer too many options. Too many options necessitate selection, and hence frustration. It can lead to mental fatigue, and the brain will decide it’s unnecessary work and rather walk away. Customers want options, just not too many.

Read More

Don’t give away your product

Giving away your product makes it less desirable. It creates the impression that it has no value. Giving it away initially makes it virtually impossible to charge for it later. Better to attach value to your product from day one. The consumer will disrespect your product if he/she thinks its worthless. PS: this doesn’t apply…

Read More

Admit negatives upfront

Admitting negatives up-front leads to better communication. It immediately creates a favourable impression with the counter-party as he/she sees you as not trying to hide bad news. Much better to lead with humble admission of weaknesses, than to start with bolshy bragging of strengths. The other person will open up and listen more.

Read More

Ignorance begets confidence

“Ignorance more frequently begets confidence than does knowledge.” Munger So beware confidence. When you feel like you know exactly what is going on, that’s the time when you’re most likely to be ignorant of what you don’t know. Much better to remain in a mental state of doubt. Keep asking questions, keep illuminating your mind,…

Read More

The power of price

The price of your product influences perception of your product. A pharmaceutical company recently did some testing on different groups, with the same drug. When told that the drug cost $2.50 per dose, nearly all of the subjects reported pain relief. When told that the drug cost $0.10 per dose, only half of the subjects…

Read More