On Your Mark: 8 Business Lessons
For all 20-something entrepreneurs (other ages also qualify) here is a list of 8 things to do in business that might make your company like Facebook, give or take a few billion dollars
1 Don’t Think Short Term
It’s stuff of business strategy lore. In 2006, Yahoo offered to buy Facebook for $1 billion. The FB board said yes. Then Yahoo slashed the offer to $850 million and Zuckerberg backed out. He calls the decision to say yes, and to make the yes public, his worst mistake in eight years. The hindsight analysis: don’t sell out if you think the business can grow. Don’t sell out just because the money seems too good now.
2 Keep Your Grip Strong
Three years into the business and FB wanted cash to expand. But investors don’t just bring in money, they like to get in their ideas too. Zuckerberg didn’t want that — no outsider to force his hand. So he shunned high rollers in favour of a strange bunch of investors like Li Ka-shing from Hong Kong, Samwer Brothers from Germany, and later, Alisher Usmanov from Russia, people who didn’t want to interfere with his work. The strategy paid off: unlike most founders, Zuckerberg owns 57% voting shares at the time of the IPO.
Three years into the business and FB wanted cash to expand. But investors don’t just bring in money, they like to get in their ideas too. Zuckerberg didn’t want that — no outsider to force his hand. So he shunned high rollers in favour of a strange bunch of investors like Li Ka-shing from Hong Kong, Samwer Brothers from Germany, and later, Alisher Usmanov from Russia, people who didn’t want to interfere with his work. The strategy paid off: unlike most founders, Zuckerberg owns 57% voting shares at the time of the IPO.
3 Bet On Yourself
In his book called the The Facebook Effect, David Fitzpatrick calls the company a “one- man show”. That’s because idea to operations, Facebook is Zuckerberg’s vision all the way. So much so, that according to a dual share structure, his vote has far more weight than numbers indicate and he also has two seats in the FB board.
In his book called the The Facebook Effect, David Fitzpatrick calls the company a “one- man show”. That’s because idea to operations, Facebook is Zuckerberg’s vision all the way. So much so, that according to a dual share structure, his vote has far more weight than numbers indicate and he also has two seats in the FB board.
4 Screw Convention
Yes, you haven’t heard of CEOs who dare claim their company wasn’t part of the original plan or who hold road shows for investors before an IPO. Neither do they wear hoodies to such presentations. But when has Zuckerberg stuck to the rulebook? His philosophy is to get things done, without bothering about tradition. So there are no cabins in offices, posters are put up after a rocking IPO to remind employees about focus and a programming ‘hackathon’ is the big party to celebrate a $104-bn valuation.
Yes, you haven’t heard of CEOs who dare claim their company wasn’t part of the original plan or who hold road shows for investors before an IPO. Neither do they wear hoodies to such presentations. But when has Zuckerberg stuck to the rulebook? His philosophy is to get things done, without bothering about tradition. So there are no cabins in offices, posters are put up after a rocking IPO to remind employees about focus and a programming ‘hackathon’ is the big party to celebrate a $104-bn valuation.
5 Accept What You Are Bad At
He is called socially awkward, but that is something we can’t validate. Enough to say, people skills is not Zuckerberg’s strong point. Neither is the coder-atheart great with HR policies and revenue graphs. Good thing, Zuckerberg didn’t want to be super hero. So in 2008, he brought in Sheryl Sandberg from Google to take charge as COO. He also built a ‘panel’ of advisers like Don Graham of The Washinton Post, Reid Hoffman of LinkedIn to become a better leader and communicator.
He is called socially awkward, but that is something we can’t validate. Enough to say, people skills is not Zuckerberg’s strong point. Neither is the coder-atheart great with HR policies and revenue graphs. Good thing, Zuckerberg didn’t want to be super hero. So in 2008, he brought in Sheryl Sandberg from Google to take charge as COO. He also built a ‘panel’ of advisers like Don Graham of The Washinton Post, Reid Hoffman of LinkedIn to become a better leader and communicator.
6 Keep Shaking Things Up
Photos and video in 2005, News Feed in 2006, new Home Page in 2008, Timeline in 2011.. get the drift? Don’t sit back and relax just because you have a great product out. There is no doubt that 900 million people would be wired up on FB even without some of these features but if you keep innovating, the competition can only watch in shock and awe. Or keep trying to catch up: a place from where they can’t push you down.
Photos and video in 2005, News Feed in 2006, new Home Page in 2008, Timeline in 2011.. get the drift? Don’t sit back and relax just because you have a great product out. There is no doubt that 900 million people would be wired up on FB even without some of these features but if you keep innovating, the competition can only watch in shock and awe. Or keep trying to catch up: a place from where they can’t push you down.
7 Bring the Stars Home
FB wasn’t built by Zuckerberg alone. He needed people with big ideas. So he shopped for the best talent in town, so what if that meant poaching from competitors. Check out the list of some of his top executives: David Ebersman, ex CFO at Genentech, Bret Taylor, founder of Google Maps, Matt Papakipos, engineering director behind Google's Chrome OS and Marne Levine, former chief of staff of the National Economic Council.
FB wasn’t built by Zuckerberg alone. He needed people with big ideas. So he shopped for the best talent in town, so what if that meant poaching from competitors. Check out the list of some of his top executives: David Ebersman, ex CFO at Genentech, Bret Taylor, founder of Google Maps, Matt Papakipos, engineering director behind Google's Chrome OS and Marne Levine, former chief of staff of the National Economic Council.
8 Stick to Your Guns
The last big controversy hit in 2011when FB came up with Tag Suggestions, a facial recognition software that identified people in uploaded photos. But privacy has been Zuckerberg’s nemesis for long: when FB launched Places, when some popular apps were caught transmitting user data to internettrackers, etc. Zuckerberg’s response? Not an apology but a declaration that the age of privacy was over.
The last big controversy hit in 2011when FB came up with Tag Suggestions, a facial recognition software that identified people in uploaded photos. But privacy has been Zuckerberg’s nemesis for long: when FB launched Places, when some popular apps were caught transmitting user data to internettrackers, etc. Zuckerberg’s response? Not an apology but a declaration that the age of privacy was over.
Try These Too Say Big Things Focus on words like
“revolution” and “mission”. They make you seem important, like a man on to
something bigger than running a company. Very Jobsian.
Keep Your College Wear The T-shirts, jeans and hoodies send a familiar signal: geek genius. The boy king who couldn’t care less about his sandals — it is a story with timeless appeal.
Share Selective Personal Details Guard your privacy zealously. It maintains an air of privacy. But do share some juicy details. Like the fact you only eat the meat you hunt. Some pictures holding dead birds help.
Steal A Few Ideas It’s the hallmark of intelligence now. To prove you knew which idea to steal is to suggest you are blessed with an uncanny sense of the future. Sounds similar to another cult entrepreneur’s strategy?
Develop A Fetish At work, that is. You must be known to be obsessive about an idea that becomes synonymous with you. Try “the hackers way” or “move fast break things”.
Keep Your College Wear The T-shirts, jeans and hoodies send a familiar signal: geek genius. The boy king who couldn’t care less about his sandals — it is a story with timeless appeal.
Share Selective Personal Details Guard your privacy zealously. It maintains an air of privacy. But do share some juicy details. Like the fact you only eat the meat you hunt. Some pictures holding dead birds help.
Steal A Few Ideas It’s the hallmark of intelligence now. To prove you knew which idea to steal is to suggest you are blessed with an uncanny sense of the future. Sounds similar to another cult entrepreneur’s strategy?
Develop A Fetish At work, that is. You must be known to be obsessive about an idea that becomes synonymous with you. Try “the hackers way” or “move fast break things”.
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