The Personal MBA – Josh Kaufman

As I said in About section, currently I have to fight more with business and less with systems. I started with The Personal MBA of Josh Kaufman.
I took lot of notes, as you can see below and I think you can get good tips from him.

If I have to say something negative about the book, it is that the first 50 pages (50 from 500) of the book, the author only complain about MBAs courses. He could have saved these 50 first pages.

Another negative thing, I found one section very interesting, it talks about willpower and how it is related to the glucose. I research a little about this topic and I found this is not entirely true. There was a study which try to relate willpower and glucose, but currently that study is not 100% credible. Independently of glucose, his advice about willpower it is very interesting.

Here you are my notes, interesting quotes and stuff for research that I wrote down while I was reading it:

Self-education is, I firmly believe, the only kind of education there is. – Isaac Asimov.

Value creation + customer demand + transactions + value delivery + profit sufficiency = business.

Value creation: the purpose has to be always to make someone else’s life a little bit better.

10 ways to evaluate a market (page 64):
– Urgency:
– Market size:
– Pricing potential:
– Cost of customer acquisition:
– Cost of value delivery:
– Uniqueness of offer:
– Speed to market.
– Up-Front Investment.
– Upsell potential.
– Evergreen potential.

Perceived Value: the higher the perceived value of your offering, the more you’ll be able to charge for it. Page 84

Prototype: show your values without fear that someone could steal your idea.

If you are not embarrassed by the first version of your product, you’ve launched too late – Reid Hoffman, founder of Linkedin.

Pick three key attributes or features, get those things very, very right, and then forget about everything else… By focusing on only a few core features in the first version, you are forced to find the true essence and value of the product – Paul Buchheit, creator of gmail and adsense.

Don’t make me think. Steve Krug, usability expert.

Currencies for negotiation: resources, time and flexibility.

The first thing for decide before you walk into any negotiation is what to do If the other fellow says no -Ernest Bevin.

3D Negotiation (page 166):

If you don’t already have a Risk-Reversal policy , implement one and you’ll see your sales increase.

Investment provided you use those funds to purchase and maintain Force Multipliers (tools), not to pay yourself or maintain rents.

Breakeven: The point where your business’s total revenue exceeds its total expenses.

Amortization: Is the process of spreading the cost of a resource investment over the estimated useful life of that investment.

Purchasing Power: The sum total of all liquid assets a business has at its disposal.

1$ today is worth more than 1$ tomorrow.

Compounding: Accumulation of gains over time. Whenever you’re able to reinvest gains, your investment will build upon itself exponentially.

Perception Control represent a fundamental shift in understanding why people do the things they do. Once you understand that people act to control their perceptions, you’ll be better equipped to influence how they act.

Guiding Structure: If you want to successfully change a behavior, don’t try to change it directly. Change the structure that influences or supports the behavior , and the behavior will change automatically.

Reinterprer your past, and you’ll enhance your ability to make great things happen in the present.

Inhibition is the ability to stop: to delay our response until we are adequately prepared to make it.

Willpower: Focus on using it to change your environment and you’ll have more available to use whenever inhibition is necessary.
Willpower Deplete relatively large amounts of glucose and when those stores run low (20:30) we have a hard time using willpower to inhibit behavior.

Loss Aversion: People hate to lose more than they love to win. Remove the perception of loss in your sales (money-back guarantee?).

Newspaper Rule: assume your decision will be published on the front page of tomorrow’s New York Times. What would think your friends ?
Grandchild Rule: what will think your grandchildren of your decision 40 or 50 years from now.

Contrast: When presenting your offer, do it comparing with a huge high price option. It will look like the product you want to sell is inexpensive.

Scarcity: do people understand they will lose something valuable if they wait.

Novelty: People can’t pay attention during long period so you need to introduce updates to keep them focus in your offer.

4 ways to get things done: completion, deletion, delegation and deferment.

Make your goals action that bring you to your final objective.

State of being: happy, successfull… They aren’t goals.

David Allen : Getting things done. Book.

Self-Elicitation: The practice of asking yourself question, then answering them.

Parkinson’s Law: If you don’t set a limit in your available time, your work will expand to fill it all.

The more Attached you are to a particular idea or plan, The more you limit your flexibility and reduce your chances of finding a better solution.

If a man empties his purse into His head, no one can take it from him. An investment in knowledge always pays The highest return. – Benjamin Franklin.

Influence is the ability to encourage someone else to want what you suggest.
Compulsion is the ability to force someone else to do what you command.

The more Important you make people feel when they’re around you, The more they’ll like you and want to be around you.

If you want your team to perform at its best, make your teams as small and autonomous as possible.

If you treat people with Appreciation, Courtesy and Respect in all circumstances, other people will feel Important and Safe in your presence.

People will be more receptive to any request if you give them a reason why. Any reason will do.

Never tell people how to do things. Tell them what to do, and they will surprise you with their ingenuity.- General George S. Patton.

Bystander Apathy is an inverse relationship between the number of people who could take action and The number of people who actually choose to act. To avoid Bystander Apathy ensure all tasks have single, clear owner and deadlines.

Connecting your offer to one of these Social qualities via Association is a surefire way to make people Desire your offer more strongly.

Obtain a small Commitment, and you’ll make it far more likely that others will comply with your request.

Modal Bias: The automatic assumption that our idea is best. Keep an open mind, and you’ll enhance your ability to make wise decisions.

Let other know you expect great work from them, and they’ll do their best to live up to your expectations.

When something isn’t going as expected, try to know about the circumstances before blame him. Give the benefit of the doubt unless a particular behavior clearly become a Pattern.

Focus on options, not issues, and you’ll be able to handle any situation life throws at you.

6 simple principles of effective management:
– Small elite teams are best.
– Clearly communicate the end result, who is responsible for what, the current status and why it’s important.
-Treat people with Respect, appreciation and courtesy.
– Create an environment where everyone can be as productive as possible.
– Retrain from having unrealistic expectations. Create an aggressive plan to accomplish the project but be aware it could change.
– If what you are doing is not work, experiment with another approach.

Reality is that which, when you stop believing in it , doesn’t go away.

When your system relies on The performance of someone outside of your control, do all that you can to prepare for The possibility that they won’t perform as expected.

To analyze a system, Deconstruct complex systems into subsystems that are easier to understand, then build your understanding of the system from the ground up.

Some questions to identify good measurement:
– How quickly is the system creating value?
– What is the current level of inflows?
– How may people are paying attention to your offer?
– How many prospects are giving you permission to provide more information?
– How many prospects are becoming paying customers ?
– What is the average customer’s Lifetime Value?
– How quickly you can serve each customer?
– What’s your current returns or complaints rate ?
– What is your Profit Margin?
– How much purchase power do you have ?
– Are you financially Sufficient?

Don’t look at your data through rose-glasses: always strive to be honest with yourself about what the data indicates you can improve.

For best results create explicit Checklists for The 5 parts of your business, then make sure they’re followed every single time.