100 unchanging rules for business success
Part 5 : The law of business
Everything that happens in life is rooted in specific laws.
In the business field, too,
the level of success at work
and career advancement is directly proportional to the agility
and ability to harmoniously apply business rules.
There is no denying
that the pace of change in business is fast and unbelievable.
In parallel with the tremendous growth
with billions of dollars in assets of successful companies,
business losses,
mergers,
acquisitions or changes in the business direction
of the companies occurred you are also more and more.
This incredibly rapid change has transformed modern business life
and impacted the lives of millions.
But this change also creates an opportunity
for you to grasp business rules
to contribute to the success
and development of the organization.
By applying the laws
and principles in this chapter,
your life and career will advance rapidly.
In just a short time,
you will make remarkable progress
that many others strive for throughout their careers.
I learned these business rules many years ago.
When I was ten years old,
I started my business selling soap.
This was followed by jobs selling newspapers,
mowing lawns,
decorating Christmas trees
and even working as an accountant in a grocery store.
I then went door-to-door to market office equipment
and then went on to sell hedge funds,
real estate,
cars,
advertising,
training and consulting services.
When I was 31 years old,
although I failed the high school graduation exam,
I was still approved to study a master’s program
in business administration
at a large university mainly
because of my many years of sales experience.
For three years in a row,
I had to work hard to pass undergraduate
and graduate courses in all areas of business
and business administration.
I finally “passed the course”
with a mind full of theoretical knowledge
and a desire to apply what I learned in real life.
After graduating,
an opportunity came
when I was accepted as a personal assistant
to the president of a corporation
with a fortune of $500 million.
By applying some of the laws of success mentioned in this chapter,
I helped that president set up,
manage,
run,
and raise tens of millions of dollars in sales of various products
and services.
In each stage of the company’s business,
I was guided by the chairman’s dedicated advice and experience
– the things that have made him one of the rich and famous.
Three years later,
I was hired as the CEO of a $265 million company
with a triple salary plus stock options.
In my new position,
I applied many of the lessons
I learned during my time with the first president.
As a result,
I was able to organize,
orient,
and redeploy the company’s entire staff within six months.
During my corporate reorganization,
I learned an essential principle of business:
any rapid change in business
will disrupt the current power structure,
and people will fight back fiercely to protect their privilege
and status even
when they know it will be harmful to the organization.
People often have a mentality of
not wanting to change nor like those who advise about change.
I fell victim to my own “bold change”
and soon I was unemployed again
and had to look for another job.
In my more than twenty-five years working,
selling,
and managing for twenty-two businesses large and small,
I have witnessed both success stories
and catastrophic failures.
I have also had the opportunity
to work with almost all types of entrepreneurs,
from those who are talented
and sensitive in the marketplace
to those who are inexperienced,
subjective and do not know how to grasp the times.
In addition,
I have also read a lot of books
and articles on many areas of business
and business administration,
but I still believe
that I have only reached the surface of the problem.
However, I have developed a few guidelines
that have helped me build a successful business for myself
and have also helped many clients rapidly improve their growth,
market share,
and profitability.
Any business organization can apply the rules outlined in this chapter.
The practicality,
simplicity and effectiveness of these rules
have also been proven by business practice
Regular application of these laws
will certainly make a difference,
leading to your long-term success.
To receive the title of “excellent salesman” you must identify the needs
and wants of the customer. —Zig Ziglar
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20. The law of purpose
The purpose of every business organization
is to attract and retain customers.
Most people think
that the main purpose of business organizations
is to make as much profit as possible.
In terms of the personal purpose of the person
who has started or invested in a business,
this thinking is correct.
But if you consider an enterprise as a whole,
with all relevant factors such
as position in the market,
reputation with customers,
organizational structure,
operational apparatus,
quality of products
or services,
people, etc. ,
profit is just one of the important goals
that businesses need to aim for.
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1st Corollary :
Profit is a measure of how effective a company
is in achieving its goals.
Much of a company’s time
and efforts are focused on attracting
and retaining customers.
The more customers you retain,
the higher your profits will be.
You can affirm that the customer is at the center
of all the activities of the company.
And profit is the measure of the level
and ability of each individual
and collective to contribute to the achievement of that goal.
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2nd Corollary :
Current profits are future costs.
A lot of people have a rather negative view of the role of profit
and the pursuit of profit.
They consider this to be quite ‘pragmatic’.
However, you need to see profits in many positive aspects.
It is the profits
that help the company cover salaries,
taxes,
investments in new products and processes,
research and development,
and improved customer service.
If the company’s business thrives,
employees will benefit a lot from jobs
with good salaries to promotion opportunities
for those with real ability.
Conversely, a business will lose money
when the profit earned is not enough to cover current costs
as well as to invest in the future.
The loss is a manifestation of a decrease in economic activities,
which easily lead to closure.
Losses are also a sign of an undirected future for employees.
And this will inevitably lead to a crisis in terms of personnel
when no one can accept to put their life in a place
with no clear future.
Approach each customer
with the idea of helping him or her solve a problem or achieve a goal,
not of selling a product or service. ― Les Brown
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21. The law of organization
A business organization is a group of people working together
for a common purpose of attracting and retaining customers.
A business organization is often formed
when many individuals want to come together
to form a strong association
that can effectively carry out customer acquisition and retention.
They want to expand the scope of work
and share responsibilities
so that each person can only focus on the parts
that can maximize their strengths.
This will create new positions
and activities to help the company develop its ability
to serve customers.
The development process will continue continuously
as the staff increases to satisfy more and more customers.
“Right or wrong, the customer is always right.” – Marshall Field
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22. The law of customer satisfaction
“The customer is always right!”
This is considered the “golden rule” in business.
We live in a market economy
where the customer is the center
and the driving force for all activities.
Never before have customers had
so much information and power.
Every company,
regardless of size,
must always find ways to satisfy customers more,
faster and more efficiently than competitors.
The most successful
and reputable companies are those
that consider customers as god
and build business structures based on this rule.
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1st Corollary :
All customer satisfaction comes from person
to person communication.
You can hardly satisfy customers simply
by providing products or services.
In addition to product quality,
customers also expect to receive a considerate,
welcoming service attitude,
professional demeanor,
prestigious warranty service, etc.
More specifically, communication
is an important factor determine customer satisfaction.
According to a Harvard University study,
68% of customers have changed their suppliers,
because of the indifference of one
or more individuals in the company.
That’s why the most successful companies have policies
that clearly define the business principles
that employees must follow
when interacting with customers.
All employees,
including the top management,
must commit to strictly following these customer service principles.
Every year, during the summer,
the Walt Disney Corporation hires thousands of students
to work at Disney theme parks.
These students are selected in mid-May
and receive professional training for about four to six weeks.
They will then officially work
during the peak eight weeks of summer
– when kids are on vacation
and theme parks are busiest.
When asked why Walt Disney had to organize such rigorous
and lengthy training courses
– 4 to 6 weeks
– for students so that they would only work for eight weeks
before returning to school,
the Disney executives explain
that anyone who works at Walt Disney,
whether a full-time employee
or a part-time student,
needs serious training on the job
in order to be able to perform the job at a professional level.
Highly professional and with a natural demeanor.
The students when being trained were more aware
of their responsibilities
and the nature of their work.
They begin to pay more attention to the seemingly small things
that determine the sympathy of customers
such as cheerful eyes,
radiant facial expressions,
skillful answers,
enthusiasm for tour guides,
how to treat customers delicate situation management,
intimate conversation with children, …
The answers of these executives have revealed a lot to us
about the customer care philosophy of Walt Disney
– the entertainment corporation in the largest mind in the world.
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2nd Corollary :
The best companies always have the best employees.
The ability to attract and retain talent
is crucial to a company’s success.
If you are an executive
or manager of a company,
whether small or large,
you need to spend a lot of time and effort on recruiting.
Be careful in both interviewing
and checking recommenders.
A wrong position can have many unintended consequences.
Fortunately, interviewing
and recruiting skills are not too difficult
for you to learn and apply in practice.
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3rd corollary:
The important role of managers
is to make the most of human resources
to satisfy customers.
With any job,
you have two choices:
either do it yourself
or have someone else do it.
Similar to a management position,
you can divide the work among many people
or do the work yourself.
The last important thing about the Law of Customer Satisfaction is
that employees will treat customers
the way their superiors treat employees.
If you find yourself being served wholeheartedly or received politely,
you know that there the manager also treats employees well and vice versa.
Never be satisfied with the quality of customer service,
but always seek to improve to the best of your ability.
Determine where your company stands in the following four levels
of customer satisfaction.
Then build an action plan to reach the highest levels.
• Level One – Minimum level to survive.
It is to meet customer expectations.
• Level Two – Exceeding what customers expect.
Additional service features can set you apart from the competition.
• Level three – Customers become interested.
You can bring surprises,
interesting beyond the expectations of customers.
• Level four – Customers are really surprised.
This is often seen in successful and highly reputable organizations.
The quality of service exceeds customers’ expectations so much
that they not only become your regular customers
but also recommend them to friends and family.
This is also a simple form of PR that is extremely effective.
“Unless you have 100% customer satisfaction,
you must improve.” – Horst Schulz
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23. The law of customers
Customers always seek to satisfy their interests
by choosing to buy products
or services in the greatest quantity,
best quality and at the lowest possible price.
Any customer calculates the economic value of his
or her choices
by making the most of every shopping opportunity
while minimizing possible costs.
Customers always want their needs to be met in the fastest
and easiest way at the lowest possible price.
This is not a dilemma
but just a fact of business life.
Customers will choose to buy products
or services from whichever supplier can best meet their needs.
So, to retain customers and grow your business,
you need to satisfy every customer.
Sometimes this is not easy
because there are pleasant customers,
but there are also customers who are short-tempered,
temperamental,
and impatient.
These customers demand from you tactful behavior along
with certain business knowledge.
Many people confuse the two concepts
of practical obstacles and problems.
Practical obstacles are inevitable in life
and you have no choice
but to accept living together,
such as weather,
environment,
climate…
Things happen in specific situations
that you can handle.
When it happens,
do you check if this is an obstacle of reality or a problem?
If the problem is a practical impediment,
you should just determine what to do now,
not wonder what happened or who to blame
or regret you could have done differently.
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1st Corollary :
Customers are always demanding.
They elevate the companies
that serve them best to a higher position
and push the companies
that serve them badly to the brink.
Sam Walton once said:
“We all have the same master, the customer.
This owner can fire us at any time by deciding to look elsewhere.”
Really customers don’t care about your company’s problems.
They only care about the satisfaction
of their own needs rather than the success
or failure of the company.
I’ve seen many cases where a company lost money
or couldn’t cut prices to satisfy customers,
and customers quietly withdrew,
informed everyone of the situation,
and never came back.
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2nd Corollary:
Customers are always right
to follow the path of least resistance
to get what they want.
From the customer’s point of view,
the purchase is for the purpose of satisfying their own needs,
proving their personal status,
and improving their private lives.
Customers are inherently sensitive enough
to know what is in their best interests.
When entering a business,
you need to remember
that the fate of your company will depend on the customer.
Customers’ decisions are always rational from their point of view.
From the moment your product is conceived,
your customers determine your success.
Only by serving the needs
and satisfying the wants of your customers
can your business survive and thrive.
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3rd Corollary :
The right business plan always starts
with the customer being the center of attention and discussion.
Some companies tend to create products
or services from their own point of view
without regard to the thoughts,
feelings,
and needs of their customers.
By not listening to customers,
those companies are losing touch with real life on their own.
To avoid this,
put yourself in the customer’s shoes
whenever you discuss any plans
or activities related to the products
and services the company intends to launch.
Ask yourself:
If I were a customer,
what would I expect from this new product?
What does this new product need to improve to be more usable?
What conditions does the upcoming service need to meet
to attract a demanding customer like me?
To get customers,
you don’t have to deal directly with potential customers.
You need to understand “customer” more holistically.
Any individual has certain “customers”.
Your first customer is the one
who determines your salary and potential for advancement.
By this definition,
unless you are the business owner yourself,
your first customer will be your immediate supervisor.
How satisfied your boss is
with you will determine your career path.
If you are a manager and have a team of subordinates,
these people will also become your customers.
How you treat
and care for your employees will determine your level
of customer satisfaction.
If you work in an accounting
or administrative department,
your customers are the ones
who have to use what you create,
such as financial statements,
computer statistics or other information.
No matter what job you do,
you also have a certain “customer” audience.
And your mission is to satisfy these important customers
to the highest degree.
This will determine how successful your business will be.
“Choose to deliver amazing service to your customers.
You’ll stand out because they don’t get it anywhere else.” – Kevin Stirtz
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24. The law of quality
Customers always demand the highest quality at the lowest cost.
This Law of Quality is true for all customers.
Customers are always looking for the opportunity to buy goods
or services of the highest quality at the lowest cost.
Companies or suppliers
that meet this customer standard
to the highest degree will succeed in the marketplace.
In 1989, Toyota’s Lexus
and Nissan’s Infiniti were introduced to the US market.
Both automakers advertise their cars as cars of the future,
with luxurious,
modern features similar to those of expensive European cars
but up to $10,000, $20,000
or less 30,000 dollars Both Toyota
and Nissan are also committed
to customers about the prestigious quality of the car
when it is introduced into the US market.
And they have been successful
with annual sales consistently reaching millions of dollars.
Furthermore,
from 1991 onwards,
Lexus and Infiniti were consistently voted by customers
as the best vehicles,
both in terms of ride quality
and after-sales service,
out of a total of 557 car models sold in the US.
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1st Corollary :
Quality is what customers specify and are willing to pay for.
Customers are the ones
who can give the most accurate definition of the quality
of the service
or product they are in need of.
Sometimes this definition is not so clear,
but most customers vote for quality according
to the way they pay to own it.
Interestingly, more than 80% of purchasing decisions
today are made or strongly influenced by women.
In his book Quality without Tears,
Philip Crosby wrote:
“The quality of a product can be measured
as a percentage of the actual strength to the strength assigned
by the manufacturer.”
For example,
you can measure the quality of a watch
by determining how long it accurately tells the time.
If the watch is running 100% of the time,
it will be rated 100% for quality.
Or the quality of a car is judged on how long it has been used
without needing to be repaired,
except for parts
that have a well-defined shelf life.
If the car runs
without problems 100% of the time,
it is rated as 100% quality.
Unfortunately, today about 25% of manufactured products
have to be reprocessed at the factory
because of quality defects.
In another book,
Quality is Free,
Philip Crosby concludes
that producing a high-quality,
defect-free product will actually save money
and increase profits both in the short and long term.
In the current period,
quality creates customers,
but in the long run,
a reputation for quality will retain the most important
and potential customers.
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2nd Corollary :
Quality is not just about the product
or service itself,
but also how it is delivered,
and warranted.
Customers not only wait for a product
or service they choose to buy
with durability in terms of use time
or high efficiency in usage,
but they are also interested in purchasing activities
such as service attitude,
warranty policy,
preferential regime,…
These are the factors
that differentiate
and compete among distributors
and are also an important factor to impress customers.
You can see an illustrative example
that belongs to the culinary field.
Nowadays,
customers often tend to go to a high-class restaurant
to enjoy delicious food;
be served enthusiastically and thoughtfully;
enjoy a pleasant relaxed atmosphere.
Customers are willing to spend a lot of money
to “own” these things
and they always rate these factors
as the “quality” of a restaurant.
Even an ordinary,
unremarkable product can be different if it is sold
and served with a cheerful and polite attitude;
contribute to increase the product value in the perception of customers.
Customer satisfaction is the core of quality.
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3rd Corollary :
The profits of companies are directly proportional
to the extent to which customers evaluate product quality.
The customer’s mind is always predisposed
to the classification of the quality ranking
of products of the same type.
Use market research to find out
where your company’s product quality stands compared to the competition.
The companies that rank in the first place are often the ones
with the highest profits and market share.
This is not difficult to explain
because the companies holding the top positions have met
the needs of customers for peace of mind
and certainty about product quality.
When having to choose
between a high-priced item
and a lower-priced item,
customers will often choose the high-priced product
because they know high price
is always associated with high quality.
High quality is associated
with customer perception of safety.
And this awareness will reduce the feeling of uncertainty
or risk when making purchasing decisions.
That’s why people often say,
“If you can afford to buy quality products,
you will never think about buying inferior things.”
There is almost always a direct relationship
between how much you pay
and the quality of the product
or service you will receive.
Rarely do you get good quality for a low price,
and it’s extremely rare
that you get something for nothing.
You always get what you paid for.
In a competitive society,
you can rest assured that high costs guarantee high quality and low risk.
Thomas Ruskin once warned:
“The joy of buying a low-priced item cannot defeat the bitterness
of buying a poor-quality product.”
No matter where the quality of your product is in your customer’s mind,
you must always be committed to putting quality first.
This commitment not only encourages
and motivates employees,
but also increases profits.
The companies with the highest quality products are also the ones
that make the most profits.
They represent the greatest opportunities of the future.
“Just having satisfied customers isn’t good enough anymore.
If you really want a booming business,
you have to create raving fans.”– Ken Blanchard
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25. The law of obsolete
What already exists will become obsolete.
The Law of Obsolete holds that everything
– from products,
services,
skills,
capabilities,
to advertising,
marketing strategies,
and business processes,
and more
– will all become obsolete over time.
Change is an inevitable
and inevitable part of life.
To survive and thrive,
your company must be up to speed
and mentally prepared to deal
with the constant changes that occur.
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1st Corollary :
Tomorrow will be different from today.
With today’s business realities,
those who hinder the trend of change
by being unable to adapt,
or adapting too slowly to the fierce competition that is happening,
will be the most likely to fail.
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2nd Corollary:
Innovation and continuous improvement are essential
for survival and development.
Innovation and improvement are not things you
only do when you have enough time and money.
If a company doesn’t offer a way of continuous innovation,
it is certain that its current business situation is shaky
and the future is uncertain.
They will be left behind by competitors,
even acquired or merged.
The most successful companies,
in most economic conditions,
are those that are constantly innovating
and introducing new products and services,
even when the business is not as good idea.
There seems to be a correlation
between the number of new ideas a company tries to implement
and its financial success.
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3rd Corollary :
The best way to predict the future is to create it.
Once, when Walt Disney was asked
if he was worried about others copying his ideas,
he did not hesitate to answer:
“Nothing! Our speed of creating new ideas is
so fast that it’s hard
for anyone to catch up to steal.”
This Disney quote can serve
as a business philosophy for companies:
the freedom to think of creative ideas
even if you don’t have enough time
or resources to implement all of them.
After you have an idea,
you are just beginning to consider all the possibilities
to choose the ideas
that have the highest probability of success at the time
and put them into practice.
Be open to everyone’s ideas.
Creative ideas do not stop at executive management
or design departments
but can come from any individual.
Sometimes this personal idea can revolutionize the company
as well as the industry.
You probably already know the story
of a 3M Company researcher in Minnesota.
This researcher had difficulty attaching bookmarks
to his half-reading bible pages,
so he tried to experiment with many types of glue
to find an adhesive that would stick
but when Removing it still does not affect the surface
or lose its stickiness.
After a lot of research,
he created an adhesive
that has now been developed into the office Notes paper.
3M now dominates the world market for adhesive Notes,
and annual sales
for this product run into the hundreds of millions of dollars.
The researcher himself became a rich man
because he received a portion of the profits.
“When you serve the customer better,
they always return on your investment.” – Kara Parlin
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26. The law of innovation
Every breakthrough in business stems from innovation,
from bringing to the existing market something better,
cheaper,
faster,
newer or more efficient.
In his book Innovation and Entrepreneurship,
Peter Drucker discusses the seven main factors
that create innovation in business.
He explains a few factors you can use
to transform the way you live both for yourself
and for your business,
including unexpected success and unexpected failure.
In any case you have to carefully analyze what happened to decide
if a potential breakthrough occurs.
Critical thinking “the tip of the iceberg”
is especially useful in examining successes,
failures,
or any unexpected events.
Whenever something out of the ordinary happens,
answer the following question:
Is this a single event or is it the tip of the iceberg?
Is this the start of a trend
or a sign of a dramatic market move?
Many major breakthroughs in business are achieved
through market acumen.
If the company recognizes a new trend
is about to happen in the market,
the company will find a way to launch a new product
that responds to that trend.
Or conversely,
if the company finds
that the situation does not appear
to be favorable for the product or service,
the company will immediately take action to minimize the damage
and develop other products
or services replace while there is still time.
Perhaps the most important trend of our time is the influence
of personal computers and the Internet.
When the first personal computer was developed,
IBM conducted a survey about the product’s future.
IBM consultants have come to the conclusion
that the entire world market for personal computers
is only 300 to 400 sets per year.
The company decided to focus on manufacturing central computers.
Today, more than 50 million personal computers are sold each year,
and the central computer has taken a step back
in the computer revolution.
IBM missed the tip of the iceberg!
To attract more money,
you must be attractive, in the sense
that people will want and prefer your products
or service over those of your competitors. — Jack Canfield
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27. The law of successful factors
The success or failure of every business organization is measured
and determined by a few key success factors.
The success factors
that are vital in business can be likened to the vital functions of the body,
such as heart rate,
breathing rate,
blood pressure,
electrocardiogram, etc.
These functions are the sign
and measure of an individual’s overall health and existence.
Lack of any function,
even for a moment,
can be dangerous.
Companies also have success factors
that measure their prosperity and survival.
Many factors are quite familiar and common,
but there are also some specific elements
that other organizations do not have.
The most important success factors in business are leadership,
product quality,
service,
sales,
marketing,
manufacturing,
distribution, accounting and finance.
Each of these factors must be implemented synchronously
in order for the company to reap the highest results.
Underperformance or failure
to perform any factor may threaten the existence of the company.
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1st Corollary:
Each individual has his
or her own determining success factors,
and these factors determine
that individual’s future business.
In order to perform excellently at work,
each individual must have certain key skills
or core competencies.
Weakness or failure in any important skill
can undermine your entire competence
and ability to perform effectively.
To minimize this,
first recognize the critical success factors of your job,
assess your strengths and weaknesses,
and then develop a plan to become proficient in those areas
that can help you the most.
For example,
problem solving
and decision making are critical success factors
for people in business.
These are key competencies
that are at the heart of every business.
If your health is not good
or you suffer from emotional shocks,
you certainly cannot make smart and informed decisions.
In this case, if everyone depends on your decision,
then the problem will be risky.
A department,
a group or a collective can completely be affected
by the weakness of a decisive success factor
of an individual holding an important role.
In each separate field,
there are decisive success factors.
For example, in sales,
a lack of training can reduce an employee’s sales effectiveness,
causing him or her to sell only a fraction of what he
or she is capable of.
In many companies,
the sales force has little or no specialized training.
This explains why the revenue level is not
what the management expected.
Therefore, companies should focus their investments
on a specific critical success factor,
typically sales training,
to double or even triple employee sales.
On your personal side,
to identify your critical success factors,
you need to answer two questions.
The first question:
“Why am I getting that salary?”.
More specifically,
“What jobs and tasks do I get paid for?”.
Whatever your answer to this question is,
it’s something that you need
to spend a lot of time thinking about.
After you have answered the first question,
continue to the second question
“What can only I do and if I do well,
the company will have obvious differences?“.
To answer this question, think about tasks
or responsibilities that only you can handle
and no one else can replace.
And if you’re dedicated to getting the job done,
you’ll make a big difference to
both the company and to yourself.
Any employee should find the most satisfactory
and accurate answers to these two questions.
This is a way to ensure that each person is focusing his
or her absolute efforts on the individual’s critical success factors.
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2nd Corollary:
The critical success factor you are weakest in determines
how proficient you are at using all of your other skills.
Personal strengths and core competencies are the factors
that help you get to the current position.
It is also the foundation to establish your status
and determine your income.
On the contrary,
personal weaknesses will create barriers
that prevent you from reaching the top.
The critical success factor
that you are weakest at will determine the speed
and length of the distance you are going.
This factor is similar to a brake holding back your potential.
To move forward faster,
you must be absolutely honest
with yourself in identifying
and facing your weaknesses.
What are those weaknesses?
What skills,
when effectively developed and leveraged,
will have the most positive impact on your career?
Regardless of the answer,
it is also the basis
for you to start taking action for yourself.
This is also the place
that will help you get the most out of your self-improvement.
Every successful businessman in this world,
he started his career with a goal. — George Matthew Adams
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28. THE LAW OF MARKET
A market is a place where buyers
and sellers meet to set prices
and decide the distribution of money,
labor, raw materials,
and other factors of production.
The market is an imaginary place
that doesn’t really exist but is everywhere.
Markets represent millions of buying
and selling decisions at all levels of society
and in every type of public and private enterprise.
The sum of these buying
and selling decisions determines the price
of almost anything in a free-trade market.
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1st Corollary:
In a free market,
resources will be allocated in a perfectly efficient manner,
and prices will accurately reflect the current situation
of supply and demand.
This consequence is often applied
in the stock market sector,
demonstrating
that the entire stock price
at the close of each day will accurately reflect all information
about the present
and future prospects of the participating company
of stock exchange.
This corollary also states
that knowledge of the factors affecting prices
will spread very quickly
to those interested in economics.
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2nd Corollary:
The free market is the most efficient way
to meet the needs of millions of people
at the lowest possible cost.
The free market
is perhaps one of the most important human advances.
Free markets are constantly forming
and operating spontaneously almost everywhere
without government intervention in economic activities
or economic decisions.
The freer the market,
the more vibrant the economy,
creating more products,
services and business opportunities for everyone.
For example,
nearly every activity in Hong Kong is unaffected
by government regulations,
except in the areas of traffic safety and security.
The highest income tax rate is 20%,
for both individuals and business entities.
Hong Kong was formerly a British colony,
with a small area and no natural resources.
However, Hong Kong has quickly risen
to become one of the world’s most vibrant economies
due to the absence of government intervention.
This small peninsula has produced countless millionaires and billionaires.
Thanks to the free market,
Hong Kong is so prosperous
that it has always faced the problem of a labor shortage.
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3rd Corollary:
The freer the market,
the greater the supply of goods and services,
and the more prosperity it brings to everyone.
Every year,
the Heritage Foundation publishes a Index of Economic Freedom,
which ranks the countries of the world
according to the “economic freedom” index.
Through years of research and comparison,
the organization has shown that health,
physical wealth,
general prosperity,
and economic opportunity
of an individual will be directly proportional to the degree
of market openness
and the freedom to do business
without government intervention or strict regulations.
Any government intervention in the free trade of the market
is often justified by the sounding rationale
that it is all in the public interest.
But in reality,
this is a matter of interests and politics.
Each government intervention usually ends up raising prices
or reducing supply,
leaving consumers at the expense of paying
more for a product or service
than if the market were unrestricted.
In other words,
market intervention rarely results in a discount
to anyone,
for any product
or service in the long run,
for which the purpose of intervention is often the opposite.
Business success depends on market penetration
and healthy competition.
The free market allows a person
with nothing but ideas,
energy and ambition
to build a big business.
A confident and professional image is sure
to help you achieve a lot of success in work
as well as in life. — George Matthew Adams
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29. The law of specialization
What you expect
with all confidence will become your own wish-fulfilling prophecy.
When you intend to design a new product
or service to bring to market,
you must clearly define the audience, purpose,
and use of that product
or service.
Do not try to create a product
that can satisfy all customer needs
because that is not feasible and useless.
If customers do not understand the specific use
or application of the product,
they will switch to another product.
Consequence:
Business organizations will fail
when their products
and services are no longer specialized
and do not serve a sufficient number of customers
in a cost-effective manner.
Specialization is the starting point for successful marketing.
You must clearly define what product you are providing
and to which customers.
This is an extremely important factor determining the success
of your company.
Just a small change
or shift in your platform
or customer focus can have a huge impact on your revenue,
either up or down.
Take the car market as an example.
Every year hundreds of different car models are launched
into the market.
Each car model is designed for a specific customer,
in accordance with unique tastes,
experiences,
incomes,
interests and needs.
Companies such as Toyota, Ford,
and Daimler Chrysler have enjoyed remarkable success
because they design models
to satisfy the specific needs
of each of the major car market segments.
Other automakers struggled to compete
and lost money
because they failed to specialize products
for a particular customer market.
Similarly, we see the success of specialization
in Internet breakthroughs,
through which companies
with big ideas are privatized at sky-high stock prices.
Within a few months,
these companies can become large corporations,
even giants,
to the extent that they have specialized
to attract a sufficient number of customers.
“Freedom is the only thing money gives you,
because you don’t have to worry about it anymore.”- Johnny Carson
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30. The law of different
To be successful in a competitive market,
a product or service must have a competitive advantage
or a unique feature
in order to stand out in some respect
from its competitors’ products or services.
In order to attract the attention
and acceptance of customers,
your product must have special advantages
or qualities that are superior to similar products
of the same type or substitute products
of the company competitors.
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1st Corollary:
Identifying a Unique Selling Proposition (USP)
is the starting point for successful advertising and sales.
You need to summarize in just one
or two sentences the most salient points about your business,
what makes your product
or service unique
or different from the competition.
Ford asserts: “Quality Is Job One”.
BMW proudly calls its cars “The Ultimate Driving Machine”.
IBM advertising
and marketing content is based on “Quality
and Customer Service” criteria.
Nordstrom is famous and profitable
because of its reputation for “Service”
and Coca-Cola as “The Real Thing”…
Unique product advantages like these have made Communicate clearly
and effectively
what sets your company apart from the competition.
The best marketing,
advertising,
and sales strategies should be built
around a unique product advantage
that can deliver the most meaningful message
to potential customers.
So what is your company’s unique product advantage?
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2nd Corollary:
To be successful in the marketplace,
a product or service must have a distinct advantage
over competing products and services.
Determining your competitive advantage
is perhaps the most important sales
and marketing decision every company must make.
Without determining the competitive advantage of the product
or service provided,
a company will quickly fail in the market
because it does not orient its business path.
The job of marketers and promoters is
to create a meaningful competitive advantage
to give potential customers a good reason to buy that product,
not another product.
Products here are not only consumer goods,
meeting life needs,
but can be “spiritual products”
such as newspapers,
magazines or “human products” such as a political candidate. .
Jack Welch, CEO of General Electric (GE),
has said that he wants GE to be number one
or number two in the field in which he competes.
If it can’t reach number one
or two within a reasonable time,
GE will pull out of the market
and focus its resources on another area
where it has the potential to dominate.
“If you don’t have a competitive edge,
don’t compete,” he said.
Internet business companies such as Amazon,
America Online, Yahoo,
eBay, Priceline, … succeed
because they know how to make the most of their websites
with outstanding designs and features.
Distinctive features
or unique product advantages can change over time
to keep up with the rapidly changing market.
For example,
for many years,
local restaurants still compete
with each other in terms of food quality,
service style,
affordable price.
and convenient location.
However, Tom Monahagn’s Pizza Domino appeared
but did not compete on the usual factors.
To attract customers in a market already occupied by Pizza Hut,
Pizza Domino has focused on its competitive
advantage of “Home Delivery”.
Today Pizza Domino has become a successful
and thriving brand on a global scale.
Those who know the simple rules of deciding to make a lot of money,
he will have a lot of money. ― George Clason
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31. The law of market segments
A company must target specific customer groups
or market segments
if it wants to achieve significant revenue.
Today, the most successful companies are those
that have the ability to see specific market segments
in order to design products
and services to suit tastes and uncover unmet needs customers
while enhancing competitor awareness.
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1st Corollary:
If the company is wrong in market segmentation,
all efforts of the company in investing
in product design
and market penetration will be futile.
Many companies focus all their product promotion efforts
on a well-defined market segment.
But the end result the company gets is
that the product has attracted the attention
and buying interest of another market segment.
For example,
minivans were originally designed
for people doing construction work
and transporting materials in small quantities.
After that, they were extremely loved by young people
and chosen as a means of sports to go
for a walk in the coast and mountains.
For years, Germany’s Lowenbrau beer
– a high-priced import
– has struggled to compete
with American brewers such as Budweiser and Miller,
but has been unable to break into the US market,
which is already established dominated by large breweries.
Finally, Lowenbrau changed its marketing strategy
and started targeting high earners with the ad:
“When you run out of champagne,
order Lowenbrau”.
By placing champagne on an equal footing with low-priced beers,
Lowenbrau has built a new perception in the minds of customers
that imported beer is a beer that can only be enjoyed by consumers.
by the sophisticated and well-to-do.
This advertising program changed the entire imported beer market in the US.
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2nd Corollary:
The ideal market segment should have customers
for whom a competitive advantage in products
is the most important factor
in meeting their most pressing needs.
In other words,
if you sell food,
sell it to housewives who prepare family meals.
If you are in the real estate business,
find people who are in need of housing.
If you sell time management systems,
sell to managers because for them,
time is a very important and necessary factor…
The most effective market segment
is one that includes people
who have a need for your product,
and those needs are proven and well-defined.
Jeffrey J. Fox in his book How to become a rainmaker said:
“Focus where there are many big fish to catch”
with the implication that the success of the sale
is reflected in the volume
of fish in a fishing session.
The overall purpose of market research is to identify
and segment the market
so that the company can access it
with the highest level of efficiency
and lowest possible cost.
The more accurate your target audience is,
the more precise your market focus efforts will be
and the more likely it will be to succeed.
You should never regret anything in life.
If it’s good,
it’s wonderful.
If it’s bad,
it’s experience. — Aysa Angel
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32. The law of concentration
Success comes from focusing your efforts on which
customer segments can most
and quickly benefit from the unique features of the product
or service you offer in your area of expertise.
Going back to the Lexus and Infiniti example.
These two automakers compete in a specific market segment,
and they focus all of their marketing efforts on customers
who can afford a luxury car for
between $35,000 and $35,000. 55,000 dollars.
The common characteristics of these customers are high income,
living in urban areas,
high education level,
working with mind.
They are also people who admire high-end cars like BMW
and Mercedes-Benz
but can’t afford to buy them.
Lexus and Infiniti know
that the more they lower their prices,
the more customers they can win in this large
and potential market segment.
While BMW and Mercedes compete for customers,
Lexus and Infiniti decided to lower prices
while positioning their products on a par
with premium cars in the US.
And their strategy has yielded remarkably successful results.
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1st Corollary:
The most effective strategy to gain the most profit is
to dominate a particular market segment
with the best product for the customers in that segment.
The Cross Pen Company is an example of a strategy
to dominate a particular market segment.
The Cross brand has entered the minds of the American business class
as a top-notch and high-quality business pen.
The company has a wide range of pens,
from low-priced black models to affordable silver models
and even luxury pens made of 18K gold.
Although other well-known pen brands
such as Parker and Mont Blanc tried to enter the market,
Cross retained a dominant position in this segment
of the business market.
This dominance has helped Cross Firm rise
to become one of the most successful
and profitable companies in the world.
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2nd Corollary:
A focus on highly profitable market segments
with profitable products
and services will yield the highest revenue
and return on investment.
To reap the most profits,
companies must succeed in providing the highest-grade products,
of the best quality,
and at the highest cost to market segments
with high profit potential.
They focus on dominating their markets
and are constantly looking for ways to innovate
and improve their products and services.
American car companies are the best example of this effect.
Chrysler was extremely profitable with its Imperial cars,
Ford with its Lincoln Continentals,
and General Motors with its Cadillacs.
The way to gain a good reputation is to endeavor
to be what you desire to appear. — Aysa Angel
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33. The law of excellence
You will be rewarded by the market in proportion
to your business efforts
as well as the outstanding quality of the products
and services you provide.
Customers always want to spend the least money
but get the most.
They expect the product
or service they buy to be of high quality
to satisfy more of their needs
and have fewer problems after purchase.
Companies that already have customer trust in terms
of quality can charge higher prices
and earn more revenue.
A commitment to excellence in product
or service quality is the safest
and most predictable strategy for business success.
Consequences:
The market rewards average rewards for average results
and below average rewards for below average results.
The main market is a fair
and reasonable custodian
and accurately reflects customer judgments
that are reflected in purchasing behavior.
Companies that provide the goods
and services the market wants,
at prices the market is willing to accept,
will always be well rewarded.
Conversely, companies
that do not meet the requirements
for goods and prices will be rejected
by the market by not accepting those products.
The key to achieving outstanding rewards in your work
is completing the most important tasks you’ve been entrusted with.
The key to your business success is building a reputation
for excellence in everything you do.
It is better to focus on one big goal
by divide your goal into dozens of small pieces. — George Matthew Adams
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5 laws for business success
There are many different paths to success,
but collectively,
they all meet in the following five big “rules”:
First, the product or service must be ideally suited
to the current market and to the needs, wants,
and cost brackets that people are willing to pay.
Products and services that do not fit
or are not adapted to current needs need
to be quickly adjusted
and changed,
or risk disappearing from the market.
Next, the company must focus all its mind
and resources on marketing,
promoting and distributing products
to customers in order to find
highest source of profits.
This is the most important factor determining the success
or failure of business in any economy.
Third, the company must have effective systems of bookkeeping,
accounting data,
inventory management and cost control.
Operational cost control
as well as inefficient internal management
are the second leading cause of business failure.
Fourth, the company must build a clear business orientation
while enhancing the smooth coordination
between management levels and staff.
All activities of the company need to be operated like a greased machine,
in which everyone understands their position
and job duties and maximizes their capacity in those positions.
Finally, the company should continuously learn,
develop,
innovate and improve.
The Japanese call this process Kaizen,
and W. Edwards Deming asserts that continuous training
and skill upskilling at all levels of the company is the key
to achieving an important competitive advantage
and long-term success in business.
By providing a product
or service that meets everyone’s needs
and at an acceptable price,
you can gain a foothold in a free market economy.
And when you strictly apply these five rules,
you can be confident
that you will succeed in your business career
and reap the rewards commensurate
with your efforts and the satisfaction of your values.
Live the life you’ve always wanted.
I’m a great believer in luck,
and I find the harder I work the more I have of it. — Thomas Jefferson
