Running a business (following blue ocean strategy ERRC)

Nation building via learning and being the best in business

by a Little bit better

The writer seem to be have employed the ERRC matrix which comes from the Blue Ocean Strategy.

The writer,vlogger lists down 9 steps in running a business

1.  Idea ideation is practical.  Can you get somebody pay you for the product in 48 hours.  If not dont go.  Its just like having MVP (minimum viable product)  Dont sweat out the website or the business plan, or the office lay out,  You waste time.  Find out if the idea works, and if even would pay you for he product idea.  No go if it wont take off

2.  Positioning.  Dont just be the ordinary product   Dont go on price war

3.  Premium offer -  exceptional, outstanding, out of this world, that the prospect cant refuse

4.  Marketing -  no one has such a product  because you used ERRC -  you reduced cost under eliminate and reduce and increased value through raise and create

5. Sales -  you fix a problem when you know the pain.  You are like the doctor.   The author said that when she applies, she asks before the interview:   what are the problems of the manager, and how do you fix it.  95% of the time she gets the job

6.  Profit  - take it first, then the tax, expenses, and others 

7.  Buy back your time    Hire first  admin (accounting hr) delivery, marketing and then the core:   your

     main interest and expertise...  say baking or editing.

8.   You are not building a product  Your secret is a system:   Like McDonald.  You have uniformity.  Thre are no experts but plain people  so you build a system so that the process is repeatable

    How:  1. You video

              2.  You document via AI

  

             3.  Have a checklist

              4.  See if it works..

Resurrecting a what could be a dead deal

Nation building via learning and being the best in business

We walked out from a multi million deal, because it had forfeiture provision.   And margin was very thin, because of the amount involved we will get only 25% ROI on total amount invested -  definitely not a way to conduct business.   But lately I thought about this if it by adding income from two other activities, the ROI can be improved, and restructing the deal,  DP, and  JV on the rest for stress and risk free payment terms.

It is a long time.  The assistant assigned did not do anything about the undesireable provision.   And we inquired about revival possibilities .  The land has not be sold due to its vicinity to the  special use.   And the other one they did not like the term,  The other baka walang pera   

We could earn from the deal, about a  9 numbers.    Its just about reframing the deal, and changing the deal structure

The partner in the said island asked for the cash flow But definitely the deal I have in mind makes the project doable and less risky and a chance for the upside

Reviving a dead deal

Adverse and less friendly business environment

Nation building via learning and being the best in business

One of our units in NL   is facing multitude of additiona business expenses:   one a P2M fine with regulators (our fault for failing to attend to this promptly it would have been a tiny penalty)  and one an 11M tax slap on supposed back taxes for failure to reclassify the property.   The dp was ok, and period of repayment was 18 months but later reduced to 12 months and 11 months.   

To top it all the landowner, the jv partner did not have money and was balking on paying and or us getting the payment and paying the interest.

Certainly this is not the type of environment that we need to face... We can have better business elsewhere.  Killing or stepping on goose that pays the taxes?   

That explains why:   lesser FDI, unemployment , under employment is high, and GDP forecast is at 3.9% no longer 5 or 6%.    

We are looking at at least 3 business opportunities with a B potential revenues  in friendlier environmetn with better demographics and location

A cousin sees hope on inherited estate wherein she is all ready disinherited

Nation building via learning and being the best in business

A cousin recently called me about the inheritance the sibling had (and they are 5) and for which she is excluded.   She was quarreling with the rest of family, but I encouraged her to attend events of sis and brod and which she did.

She told me her sis who was almost 40% interest in the property approached her so that the same could be liquidated/sold and PHP divided. 

So I proposed:

    1  To have subidivided plots project

    2  I made three price points:   low mid and high with interest ranging from 6 to 9%

    3  Net proceeds after dev cost com amount to 4M2@ for low,  P5M @ for mid, and P6M for high

    She would earn ORC for marketing the project of up to 5% of gross and up to 3% of net amounting to about P700,000.  Wow.   Maybe counting the eggs early not yet  But we have to make estimate for motivation

From zero to something.    Entrepreneurs really create wealth

Elon Musk is the world's first trillionaire with Space X IPO

Nation building via learning and being the best in business

This was unthinkable a decade ago.   

5 worlds richest men

Have the recent political developments caused decline in business activities in the Philippines?

Nation building via learning and being the best in business

Early on, this post thinks no but the prolonged and deteriorating political situaiton have now caused fall in investor confidence, lack of focus among population and have divided the nation.   Its now affecting business.  

Risk management or being ultraconservative?

Nation building via learning and being the best in business

This post just show collapsed building at the cities in Southern Philippines which experienced magnitude 7.8 tremors recently.     Many have been injured many have died.

We had a project in Polomolok, a municipality 15 km from Gen San and we could have gone on investment spree at neighboring towns which now are very progressive.

But the recent earthquake may have pushed back progress by a couple of decades.  Maybe reconstruction will be quick.  The earthquakes have been strict building inspectors.   And clearly many have subscribed to lower magnitude of earthquake, or enforcement have not been up to par.

This post avoided investments in

    1.   Tagaytay (near Taal volcano)

    2.    Baguio (Punongbayan said that a lot of geological changes will take place in Baguio

    3     Pampanga and Zambales (due to Pinatubo)

    4.    Bulacan (it is sinking)

Is this post being ultraconservative or is this wise risk management?

What do you think of these disasters vs investments?

George Bockl, whose book on real estate I read many times warns of unchangeable faults (those that exist and cannot be remedied by repairs of human efforts.  Who can prevent damages from earthquake or volcanic eruptions? or collapse of property near a riverbank or sea?

What Patton did to Lt who stole from house of conquered civilians

Nation building via learning and being the best in business

The usual paradigm for the military is for victor to bring home the spoils.  Thus the Nazi loot, Yamashita gold.  But Patton was against that.   Patton did not want the victors to pillage.  There is no honor in fighting and killing others to be the same as the people whom you fought....

One of the things that conquerors must do is not to steal from the captured territory.

"No taking of captured, no looting"   Theft was  subject to court martial

Patton asked the Lt to remove his uniform and remove the bars of his rank.  He  was demoted to private

I took up reserve training and this does not seem to be the rule.   The organic officer seem to be stealing the uniform budget and even the patrol allowance.   Let us awaken the ghost of Patton.

Real estate has now become very expensive; how do you find shelter for the future generation

Nation building via learning and being the best in business

Early on this post tried very hard and entered into housing development in order to provide affordable housing for the working class.   The housing loans were P180K at most but land was cheap:   2 numbers and construction cost was still 4 digits.

But now raw land is in high 4 to 5  (in some areas this is 7 numbers) numbers and construction cost is in mid 5 numbers.     You cant reach their affordability  level.  And the wages, productivity are not keeping up.  

Are we in the same status as other countries where affordability, even rent is beyond the rich of the middle class (even In Japan, US, Europe) that is why citizens sleep in cars or tent (homelessness is up)

What happens to our childrens housing?  What can be the solution?   Capsule shelters, tents?

Our country's leaders are focusing on the wrong metrics; there is too much noise and confusion

Nation building via learning and being the best in business

There is too much noise and squid ink, and too much confusion.  We need clarity and be clear on what matters most

We talk about impeachment and numbers in Senate:   11 -13.    And who is going to jump

We forget about us not reaching our 6% GDP growth, 7.1% inflation.       Politicking is more important than stomach of our people

Being independent and being in control - the goal of an entrepreneur - how a former lawyer who was disbarred chose to work on her own instead of just being another employee

Nation building via learning and being the best in business

This post watched this video yesterday.  

This was a video regarding a waitress who was former lawyer associate but was disbarred due to a frame up by colleagues and had to make do as waitress.

During a signing of a contract, she noticed and saw through the documents of  poison pill which she authored and now buried deep into voluminous contract that says that all previosu legal liabilities would be passed on to the acquirer in the merger being made (We always insert -  there are no liabilities, real or contingent and the Vendor shall protect the VENDEE from any lawsuit or claim against whomsoever at the formers expense"

Maya  revealed that the poison pill will make the VENDEE liable  for a fine of $500 milliion in a $3.7 billion deal.    The Vendee must back out of a deal because of a potential half billion dollar loss.

So when the Vendee was about to sign, she said do not sign and the Vendor was angry.  The Vendee brought the waitress to their head office researched on her CV and found out:    

       1.   She was former law associate 

       2.   She was disbarred

 The Vendee was taking in Maya and Maya proposed a deal

     1.  They file a lawsuit vs the VENDOR a thin paper work which would mean the suspension of corporate papers and the clean up

      2  Or sign an agreemetn wherein:

          VendOR would surrender ownership for  $2B sale, and remaining  30% ownership

           and Vendees clean company do the clena up for  much lower amount and using their clean

           carbon credits

      In the deal, Maya saved the  Vendee, $1.5 billion in acquisition cost plus potentiallly $500 million in 

in clean up or $2 billion total

     Maya was offered a $600,000 a year pay, a senior management position plus a new car, and residence.    Maya knowing that the Vendee the employer would sooner or later disagree and fire her refused.!

     SHE WANTED INDEPENDENCE AS MOST ENTREPRENEURS WOULD!

     Instead she would:

    1.  Be a head of lawfirm and her fist client is the Vendee for $10.00 million engagement

    2   Strike a deal with the party that caused her disbarment so that she could be a lawyer again

From a lawyer to a waitress being humiliated and disbarred, being a white knight in a deal, and reestablishing her career as a lawyer.

Lessons:

1.  It pays to be patient (as Maya did being silent for a decade in her disbarment)

2.  Hire a good lawyer and accountant as you grow in size.

3  Your action change as you lower or higher your goal.  Being on your own rather than being rich made her change her decision

4.  Beware of poison pills  (as in the case of Lopez quarrel.  Family quarrels occur as I have experienced>)

         

   

You could create a new deal when you are the end of the wall and nothing would seem to work

Nation building via learning and being the best in business

This post had a meeting with a project officer and there was a business proposal:   the partner had a 1 hectare property in mind priced at P1,000.00 per sm so for a total of P10M.  However the proponent wants us to finance the project however we had alsmost a 50-50 deal and we shouldered the cost of goods sold and operating expenses and our margins were very minimal.  

The project looked doomed since it was one sided.  The other party was a former LGU head (they seem to share the same business behavior) and was used to a raw deal:   we finance the purchase, we get 50% -50% almost And we would landbank it he does not want us to get the project approved by the LGU - ilalandbank pa.    Lugi walang roi for the 10m.

So I did not like the raw one sided deal and participate no more in this kind of rip offs

I got a brilliant idea.

What Ecclesiastes talks about wealth?

Nation building via learning and being the best in business

Then he wrote one word to describe it all: meaningless. The book of Ecclesiastes is the most financially honest book in the Bible — and the one most pastors skip. It doesn't fit the prosperity sermon. It doesn't support "follow God's principles and get rich." It says the opposite. But hidden inside that brutal honesty are five financial principles more relevant today than when they were written 3,000 years ago. The 5 Principles: ▸ PRINCIPLE 1: Wealth never satisfies — the hedonic treadmill, described 3,000 years early ▸ PRINCIPLE 2: Diversify your investments — "give portions to seven, yes to eight" ▸ PRINCIPLE 3: Workaholism is vanity — one handful with peace beats two with exhaustion ▸ PRINCIPLE 4: Enjoy what you have now — the most surprising financial advice in the Bible ▸ PRINCIPLE 5: Fear God and keep his commandments — everything else is vapor If you've ever been sold a "biblical wealth code," this book is the antidote.

Examples of fund raising deals that were published at FB/sent to me by Viber

Nation building via learning and being the best in business

1.  Gold trading Joint Venture -  calls for a P15m investment in gold bullion purchase.    However the proponent was a mining company and the deal had no other details.  ROI was not discussed.    I answered pass for the uncertainity and I do not know the proponent.  Only the agent.  And I doubt if the agent knows the principal well.

2.  Grosvenor   based in UK by an educator and offers short to medium term investment  not longer than 24 mos, offering returns for 20-30% per annum, 10% on rental properties.  Maybe these are flipping deals.

3.  Jet Car -  Offers  20-30 margin on car flipping deals.   The details of the deal are not  clarified:  amounts returns, documentation, security,  The principals are not well identified.

4.   A professor under the name of  Tursted Capital Services c/o Professor Natasha.   gmail:  drnatashakathleen@gmail.com  The reply at messenger asked me to gmail her directly introduce myself maybe she will invest if she likes the project

We asked the colleague to study the deals if ours were better or equal or worse.  

They did not follow up

Menu of options for raising funding for a start up /new venture

Nation building via learning and being the best in business

We normally  operate on a ITO format.    To start business raise capital build the infrastructure, to build the product to offer the customer    

Thus we put up the money build the building and later on look for customer to generate revenue.  And more often not the strategy fails.   

So early on in MBA subject entrepreneurship, we have the serendipity walk:   walk into a street crowded with business and look for other potential business that can be set up.  Cherches le craneu.  Look for hole in what appears to be a saturated market.  Do the cusotmer first approach.  Go find a problem - what pisses you off, look for the solution, make or build the solution (MVP minimal viable product).  You will find out that some successful ventures (as gathered from entrepreneur guests)  that Toby peanuts started from a P3,000 initial seed capital,  Splash from a drumful of acetenone funded by P10,000 wedding cash gift.  So what can be the menu:

1.   Follow the Richard  Branson of Virgin example.  Fund your business from deposits of dp of potential customer.  So this is what contractors printers do.  Programmers.   Ask for 50% dp to start the project   Dont use your own money   OPM.   

2.  Forget the ITO model ie of raising equity borrowing from bank or bombay, or going to a VC.  If you do this right you dont have to go to vc.   

For example a fresh graduate from MBA was planning to put up a logistics solutions company and contacted the billionaire for initial funding.  So he said, think of how you start your company without my help or VC. or going to a bank.   So he had to think hard.   He wrote 100 logistics company (gmail of course) offering solutions to a particular problem (he all ready has a solution)

His offer was if I solve your year long problem by Friday, you pay me $5,000.   Somebody accepted his offer and the problem was solved and he got his $5,000.    So he kept the $2,500 paid a programmer to have a working website/solution.    

He wrote again other prospects and offered $2,000 monthly lease subscription by using his software /solutions.   He got  6 subscribers.   Thats $12,000 x 6 =  $72,000

He met again the billionaire and was asked if he still needed help/financing.  Naw.  That was easy

So you have to train your mind to think out of seemingly helpless situation.

For a batch of trainees, the challenge was how to raise $100,000 in a month if you dont have a job.  And they did come out with fine surprising solutions/plan.  However the thought of having security from P16,000 monthly salary lulls them into complancency and that of dependency.

3.  "What is essential is invisible to the naked eye"

The real cash generator are not those that are visible to the naked eye.  This is the primary idea behind the free Its a bait to get the people get their foot in the door. Once inside the door, the real money can be made on higher margin products.  

     1.  Free coffee - to get people to come in buy snacks sandwhiches which have higher margins

     2.  Free haircut at Landers to buy their P700.00 membership card so that you will be a repeat customer  from whom you get sales and gp

     3.  Amazon Prime -   losing logistics membership thru which you get free delivery.  Now the same

          is offering livestreaming competing with Netflix.  

     4.  Buying a losing firm to get the talent to put up a system/sales platform -  like Jet Com bought

          by Walmart to get them on e commerce plat 

Its really a great deal and a blessing that we have people like Peter Thiel who writes about Zero to One.  Creating one from Zero.    That is the blessing from entrepreneurs.     Entrepreneurs create wealth and help build the nation.

Let us count our blessings, thank the Lord for that, and so that we may continue and be a blessing to less fortunate ones.   

Good better best (a Russian poker strategy) also works on closing a sales or a deal

Nation building via learning and being the best in business

Early on while taking MBA, a professor in Problem Solving emphasized a good better best strategy in nego or sales closing.  Some of our more experienced sales staff do that.

That means when it comes to a prize questior or size of the deal, you put up first the biggest deal or most expensive product in the hope of that making a choice narrows you down to his/her price point.

The best deal probably would be cheaper or smaller

So last Wednesday, we were in the meeting where the party was proposing an investment deal.  They initially had a 2x deal in the vicinity of 7 number which seemed to be just right for him at his current estimated status in life.  Why dont we deal him the good better best strategy.?  Why not propose or offer him first the big 8 number deal as strategic investor.   But larger returns.   Not Just 2x but 6x but for a longer period of time and with cash dividends on the fourth year.

Surprisingly, initially he stayed with the initial offer and asked for more details:  computations, docs.

Did we do the right thing with good better best?

Strategizing, communicating but sometimes force is needed and a forceful leader

Nation building via learning and being the best in business

After mental exercises and various forms of communication team building strategy does not move and is in doldrums.  Sometimes you need forcefulness and bringing in a new personality who exhibits force and things get done.

It reminds me of the definition by  Roger  Enrico  (former head of Pepsi who propelled Pepsi to the top did the ads with  Michael Jackson) of leadership  who said "  It is taking a point of view and experessing this FORCEFULLY.  "

Compete on other areas: other areas that cant be copied by competitors; be aspirational in a mass market

Nation building via learning and being the best in business

Surprising move for Target vs Walmart

                                                    Michael Graves collection

1999

Walmart crushes Target on prices.    They cant compete. They are declared dead   Bob the boss says they compete on other areas.  The boss wants Target to be an aspirational go to store.   

Michael Graves -   design products for Target;  good design for every one.   ($40.00 that looks like $400.00)   then other designer product lines.   Clothing lines.    Luxury line.  Made is aspirational

Today, Target sales is $100 b

How do wealthy protect their wealth through art and paintings

Nation building via learning and being the best in business

So painters get rich if they have painter

1.  The wealthy buys commission the painter

2.   The wealthy pays the painter say P40 m for somethign that could be ugly

3.   Then the wealthy puts the painting at warehouse (a freeport)

4     Then they put up the painting for auction.   

      The purpose is to up the price.   The price goes up to P80M

5.  Then the wealthy person donates the art piece to a museum.

      The museum accepts the donation which is tax free

It is a financial weapon disguised as philanthropy or culture.

The art tax yield/write off

7 Torah laws that propel Jewish wealth for 100 generations

Nation building via learning and being the best in business

Maybe we do not know know or even disdain business principles of the rich like the Chinese or Jews.  But they are so rich.    In US there may be just 2% of total US population but control 30% of the wealth  At Israel, these rich fund the wars vs their neighbors.

They must be doing a lot of great things that MBA and Ivy Leagues do not know or not teaching (When I was teaching MBA, this post asked students to make report on Business and the Bible,   Money is mentioned 300+ times in the Bible.  Surely God wants us all to succeed.

Here are 7 principles mentioned by the author:

1.  Guard your reputation

     Your networth is your reputation.     

     Your reputation is the funnel where cash flow comes in

     Employ honest weight and measurement.  Be honest and truthful

     Be like the Chinese and the Jews who seal the deal with handshake

     Their words are the hardrock foundation of any deal

     Find in your business gaps where you are not keeping your word and correct this ASAP

2.  Do not muzzle your ox

    Share your earnings, your wealth with those contribute to your wealth building.  Chinese and

    Jews practice this.

    We practiced this through incentives and profit sharing.  But succeeding generations are not 

     practice these.

Be square honest and transparent in your deals....build for the long term, not cornering a smart one time deal

Nation building via learning and being the best in business

Be honest and square in your deals.   Not always gaining the upper hand.  No insider trading secret deals.

Be transparent with your customers and suppliers/sellers.  

Build a reputation.  Be transparent  Not a one time deal that favors you.   Be the one to to go because you are fair honest and minds others interest too.  Not yours alone

Think of long term  10- 20 years and even about your own death.    What will people tell you about you as  businessman  20 years down the road and even eulogy at your death.   

This concerns about a ROW issue with one  of the big landowner who let us pass through their properties.   About 3 decades back.    My successors had issue with them and filed cases in the court regarding an alleged mischief and destruction of property by the grantors of the right of way.  I was a signatory to the grant of right of way.

The court called me to testify.  What do I do:  side with my siblings who now run the corporation,  or side with the truth.?   What was the grant of right of way all about?  Did we have exclusive right to the property or did the grantor have equal right to the right of way.

This post sided wth the truth because no one would like to do business with me anymore if I twisted the truth

Principle from Torah in business dealing - Genesis 14 - that you made people rich not the other way around

Nation building via learning and being the best in business

This was the principle that one of the Rotschild, Mayer employed in dealing with his customers as a finance expert.  He gave the best term to one of the  customers a prince:    lower interest rate, flexible repayment terms so that later on he was the go to person when finance was involved.    Lest it not be misunderstood that the customer made him rich, it was the other way around

This post thought that when he was in the finance business it was the goal of the company to make the customer prosperous, not bleed him/her dry.    But to make him grow rich and prosperous so that both of the businesses grow.    And any business.  We solve customers problems.  We make him gain, remove pain.   

You cant maximize.  You   have to make it fair.    If you make money, let others make money too.  It is their right and opportunity to profit from your ideas and the deal you are closing.     Being too greedy makes it hard and leaves a negative feeling at the other end.  Making money flow into the others coffers make it equally easy to let money flow freely end lessly into yours.

If the others are unhappy with the deal or sale, return the money.  Make amends.

If your goal is to gouge your customer you are nothing more than a thief or pirate or a govt tongpats.  Flood control expert...

Genesis:    14 - 18-20

¹⁸ And Melchizedek king of Salem brought out bread and wine. He was priest of God Most High.
¹⁹ And he blessed him and said, “Blessed be Abram by God Most High, Possessor of heaven and earth;
²⁰ and blessed be God Most High, who has delivered your enemies into your hand!” And Abram gave him a tenth of everything.

Wrong system will reward the wrong ones like decreasing customer retention

Nation building via learning and being the best in business

Customer retention is more profitable but the system rewarded speed vs Customer Service.     So the reward system has to be changed.  Employees can be blamed for the wrong behavior because the system rewarded this.   

Continuing business is the goal of every business.   So that has to be encouraged...

Rewarding customer service; overhauling the incentive system

Increasing the likehood of repeat business/visit at restaurant

Nation building via learning and being the best in business

The likehood of a customer getting back is less than 40% but the % can be increased.   

Market for more visit (3)

1.   First customer  -   free  special rib dinner with a card  (just $4 vs $1,200)

2.   2nd visit -   chicken dish

3.   3rd visit  -   free cheesecake  percentage is 70%+

How can we translate this into our business.?

Better than media marketing.   

Marketing restaurant for the 3rd visit

7 Great Books to read when making difficult decision

Nation building via learning and being the best in business

• Good to Great by Jim Collins

Disciplined thoughts, action (execution) confronting brutal facts. Placing the right person in place

One week executive can destroy executive

• The Effective Executive by Peter Drucker

There are are urgent activities confronting executive. What truly matters now.?

Focus is needed. Asking what the situation needs

• The 77 Laws of Great Leaders by Phon Piseth

Management enters the architecture of power and authority. (what happens when people start looking

at the leader. Judged also on emotional weight of the authority. If they hesitate. Weakened by

wrong delivery. Authority is not merely exercise of power Can people move despite decision. People are sensitive to signals. Emotional architecture under pressure

Silence carries enermous authority. (Many words strike differently) Defending early too many words

weakens the executive

• Execution by Larry Bossidy and Ram Charan

Execution follows meeting KISFREK Who now owns the decision

• Team of Rivals by Doris Kearns Goodwin

Disasgreements : how do they affect decisions. Do you want comfort or clarity after disagreements

Talk about Abraham LIncoln on how he navigaged disagreeements

• The Hard Thing About Hard Things by Ben Horowitz

• The Outsiders by William Thorndike

Long horizon thinking, delayed decisions. Capex Quiet decisions not noisy decisions.

Live with strong leaders.

Fortunate to have read 3 of the 7 books in my life as a businessman

4 Important business principles from MIT Monk learned in 20 years

Nation building via learning and being the best in business

This can help numerous would be, entrep wannabees:

Most of what is being written is learn to avoid so that we 

Principle1: Avoiding Ghost Towns Principle 2: The Passion Dilemma

Principle3: Understanding Business DNA

Principle 4: Building High Walls

Principle1: Avoiding Ghost Towns

This challenge is the result of the University system. We live a real life of divergence but the University is convergence. Questions are preformed and no one dare question the question. Sometimes we solve problems no one needs. And there companies financed by VCs, 48% of them dont return money. So many put up restaurants in ghost town..

This is exemplefied by a wall to where we bike frequesntly built in the middle of nowhere and surely this is a failure. This often happens.

Principle 2: The Passion Dilemma

Follow your passion and you dont to have to work the rest of your life. So says Steve Jobs to follow passion but that does not necessarily work. Follow your effort

For passion its mostly about art. And there are numerous artists painters and actors. And since there are many the value of the talent goes down.

Principle3: Understanding Business DNA

The business DNA:

1 The product they physical goods. The cash trap You need plenty of cash. Supply chain in

investment

2 The software use massive amount of cash for the development. Ai helps this. Build the MVP

before taking massive investment. Convince yourself that you have buyers.

3. The service use of time and talent New product types and can run without you

4. Marketplace (trading ) Hyperfocus on one niche

5 Media you are selling attention. You have to keep on running. Build direct connections vs

having yourself on a platform

6. Capital DNA - renting money: banks, hedge funds. Trap: one bad investment. can wipe you

out

7. Asset DNA investing requires massive amount of cash.

Be sure you and your busienss DNA match. If the business is the right vehicle for you

Principle 4: Building High Walls the walls, the moats you need to build so that the competition cant get into you. The franchise

1. Economies of scale barrier. If you have large purchase

2. Network - every new user add value to existing network. Like VISA - plenty of merchants and

user Even if I introduce of new card (but zero user and merchant)

3. Dominate a niche rather than entire ecosystem.

The illusion of free

Nation building via learning and being the best in business

The illusion of the free.

What if you are renting hotel at $150.00  and the competitor drops to $120.00  and he plans to drop to $110.00  The consultant stops the hotel owner. and suggests:     $180 hotel room  with free meal.   worth $`100.00 (which cost only $25.00)

So you make:     $80.00  +   (100 - 25) 75  =   $155.00 much more than if you sell room at $150.00

So you keep your hotel full, and the restaurant full.  Additionally, the hotel occupants order desert or cocktail   and pay the $30.00 extra.  How many times you spend more on the free.    The free is a custom built ATM for you

See how they tempt you at casinos while riding buses with free $50.00 gambling credits and above the WD free dining and drinks 

Free meal with hotel

Oft repeated theme to sell and create value - scarcity

Nation building via learning and being the best in business

Tycoon apology

Being scarce creates demand; discount tells you are commodity and that you are desperate.

The moment you discount, the more you appear desperate.  Walk away and be scarce and unavailable.

Create a waiting list.

Scarcity creates value.   Being desperate does not.  

So the jeweller instead of 70% discount was advised to close the store and allowed sales by invitation only  Thats scarcity.  

Being scarce makes you valuable

Forceful and smart selling advise by Machiavelli

Forceful and smart selling advise by Machiavelli

The sales advice was probably adopted from the lines taught at Machiavellis Prince

There are 5 tactics:

The Illusion of Choice Technique (advanced closing strategy) ✔️ How to create scarcity and urgency in sales ✔️ The power of psychological triggers in marketing ✔️ Narrative control and authority positioning ✔️ The Strategic Retreat Method (reverse psychology in selling)

1. The illusion of choice

Control the choice. Do not give the customer unlimited choice

But actually the choice has been made. By employing the good

better strategy. Good is the more expensive and then presenting the

more affordable. It is often a used word: decision becomes inevitable

2. Creating scarcity:

Fear sells. It is better to be feared rather than loved

Either by telling shortage in inventory, or time frame. When there is risk or danger, a person rush to make decision We are adopting this in Temu marketing promos beginning March 16. Limited promo items, and campaigns running 4 weeks at most.

FOMO (fear of missing out)

3. Psychological triggers

Mask of authencity. Perceived authencity. Skill appears trustworth.

One who can give a good advice to build trust.

Appear to be one with them, but actually pushes own agenda

4. Narrative control of authority

Ask question vs defending. Stay on offense.

Appear to be the expert

5. Strategic withdrawal

Dont be desperate. Appear to be not needing tthe agent.

1. Now is not the best time

2. Maybe you need to have more research

Do you appear to be manipulative? But are you not selling everyday. ?

Machiavellis thought on selling