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Businesses exist to fulfil human desires.
(a short thread on this mental model)
It's also the 2nd chapter of my new book https://invertedpassion.com/why-do-businesses-exist/
(a short thread on this mental model)
It's also the 2nd chapter of my new book https://invertedpassion.com/why-do-businesses-exist/
1/ Human desires have been shaped by millions of years of evolutionary programming and therefore haven’t changed much during the course of history.
In fact, the most fundamental desires of food, sex, health and security have remained the same as they were for our ancestors.
In fact, the most fundamental desires of food, sex, health and security have remained the same as they were for our ancestors.
2/ New derivative desires emerge to help fulfil our basic desires in a better way.
e.g., the desire for transportation is derived from the desire for doing business with far flung areas which in turn is derived from the desire for profit which itself is derived from..
e.g., the desire for transportation is derived from the desire for doing business with far flung areas which in turn is derived from the desire for profit which itself is derived from..
3/ .. our desire to feel safe by hoarding resources for the rainy days.
4/ You see, there’s always a hierarchy of desires and no matter how novel a desire may appear (say the desire to livestream on Youtube), it ultimately is in service of a fundamental desire that’s shaped by evolution. https://invertedpassion.com/evolution-explains-everything/
5/ HERE'S THE OPEN SECRET.
Startups succeed because people are forever looking to fulfil their desires better than before. We are perennially dissatisfied and capitalism is a system that continuously tries to satisfy us through technology and creativity.
https://invertedpassion.com/capitalism-rewards-rare-and-valuable/
Startups succeed because people are forever looking to fulfil their desires better than before. We are perennially dissatisfied and capitalism is a system that continuously tries to satisfy us through technology and creativity.
https://invertedpassion.com/capitalism-rewards-rare-and-valuable/
6/ This basic idea of what remains the same and what changes is captured well by Jeff Bezos in his 2016 letter to Amazon shareholders:
https://blog.aboutamazon.com/company-news/2016-letter-to-shareholders
https://blog.aboutamazon.com/company-news/2016-letter-to-shareholders
7/ A similar insight comes from his answer to what will change in the next 10 years, to which he replied:
8/ What fuels capitalism is not the shiny new thing but the old one done in a better way. https://invertedpassion.com/dont-go-where-the-puck-is-going/
9/ Our basic desires have remained the same throughout history and the businesses that have succeeded are the ones that have been able to help people fulfil their desires better, faster and cheaper than currently available alternatives.
10/ 
Remember:
Always ask yourself what human desire is your business fulfilling and how can you fulfil it better, cheaper and faster than the current alternatives?
Remember: Always ask yourself what human desire is your business fulfilling and how can you fulfil it better, cheaper and faster than the current alternatives?
11/ As a personal example, the reason @VWO was NOT because it was the first tool in the market to help do A/B testing.
It succeeded because it RADICALLY shortened the effort required to satisfy the desire to do A/B tests (which in turn was derived from the desire for profit)
It succeeded because it RADICALLY shortened the effort required to satisfy the desire to do A/B tests (which in turn was derived from the desire for profit)
12/ That's it!
Read the full chapter here: https://invertedpassion.com/why-do-businesses-exist/
The beautiful illustration is done by @sia_steel.
Read the full chapter here: https://invertedpassion.com/why-do-businesses-exist/
The beautiful illustration is done by @sia_steel.
13/ I'll be posting one new mental model for entrepreneurs every week.
Here's the entire list of 60+ mental models that I'll cover in a year or so https://invertedpassion.com/free-book-mental-models-for-startup-founders/
Make sure you sign up for email updates on the book page.
Here's the entire list of 60+ mental models that I'll cover in a year or so https://invertedpassion.com/free-book-mental-models-for-startup-founders/
Make sure you sign up for email updates on the book page.
14/ Revisit the previous chapter here: https://twitter.com/paraschopra/status/1307914722541334529
