Some Words (of Wisdom)

Seth Godin

EXPLORATION AND THE RISK OF FAILURE

People seem to be in one of two categories:

Those who seek stability, affiliation, work worth doing and the assurance it (whatever it is) will be okay.

Those who explore, need to know that failure is an option and quest to make a dent in the universe.

You can be in either category, the world needs and rewards both. But pick a brand and a job and a posture that matches your category, or you'll fail, and be miserable until you do.


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FOUNDATION ELEMENTS FOR MODERN BUSINESSES

When you sit down to dream up a new business, you can imagine a world without constraints. Or you can choose to build in fundamental pieces that will make it more likely your idea will pay off.

Here are some fundamental pieces of most new successful businesses. The goal is to build these elements into the very nature of the business itself, not just to tack them on. For example, the Scotch tape people at 3M can't do #5, because of the structure of retail distribution and the way they mass produce and can't track who is buying what.

You can live without some of these, but go in with your eyes open if you do:

Build in virality. Consider: Groupon.

Don't sell a product that can be purchased cheaper at Amazon.

Subscriptions beat one-off sales.

Try to create an environment where your customers are happier when there are other customers doing business with you (see #1).

Treat different customers differently.

Generate joy, don't just satisfy a need for a commodity.

Rely on unique individuals, not an easily copyable system.

Plan on remarkable experiences, not remarkable ads.

Don't build a fortress of secrets, bet on open.

Unless there's a differentiating business reason, use off the shelf software and cheap cloud storage.

The asset of the future is the embrace of a tribe, not a cheaper widget.

Match expenses to cash flow--don't run out of money, because it's no longer 1999.

Create scarcity but act with abundance. Free samples create demand for the valuable (but not unlimited) tier you offer.

Tell a story, erect a mythology, walk the walk.

Plan on obsolescence (of your products, not your customers).