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Business lessons by @JeffBezos from 1990-2002 Studying great entrepreneurs is a good way to optimize for your own success as a founder.
Spent the weekend watching Jeff's old videos and lectures.
Here are 9 Mental Models you can apply
#1: Regret Minimization Framework
This one is well-known.
At age 80, you wanna minimize the number of regrets you have. Jeff calls this the Regret Minimization Framework.
Jeff's Wall Street boss told him that Amazon sounds like a good idea for someone without a great job
This one is well-known.
At age 80, you wanna minimize the number of regrets you have. Jeff calls this the Regret Minimization Framework.
Jeff's Wall Street boss told him that Amazon sounds like a good idea for someone without a great job
"Most regrets are acts of omission, not commission."
So he took the plunge and started Amazon, the rest is history.
You need to be able to look back at your life from an 80-year-old-you's perspective and think long term on whether or you'd regret the action you're taking.
So he took the plunge and started Amazon, the rest is history.
You need to be able to look back at your life from an 80-year-old-you's perspective and think long term on whether or you'd regret the action you're taking.
#2: Ideation
Bezos' selling-stuff-online idea was backed by data.
He saw that web usage was rising 2300% per year.
The reason why he chose to sell books was that there were more items in the book category than there were in any other category.
Good lesson in ideation
Bezos' selling-stuff-online idea was backed by data.
He saw that web usage was rising 2300% per year.
The reason why he chose to sell books was that there were more items in the book category than there were in any other category.
Good lesson in ideation
You need to spot a growing market, do your analysis on which niche to pick, and only then take the plunge into building a business.
Most people wing it and choose an idea they'd personally like without first studying the market.
Take a market-first approach.
Most people wing it and choose an idea they'd personally like without first studying the market.
Take a market-first approach.
#3: Obsess over Customer Experience
Amazon is one of the few companies that has had an insane customer focus right from when they started.
Don't fall into the trap of obsessing over the technology you're building, obsess over the value you're providing to your customers
Amazon is one of the few companies that has had an insane customer focus right from when they started.
Don't fall into the trap of obsessing over the technology you're building, obsess over the value you're providing to your customers
#4: Marketing
The first year of Amazon was mainly WoM marketing. No paid ads.
Flipside: If you give them a good experience, they tell 5 of their friends. If you give them a bad experience, they tell 500.
WoM works best if you follow #3, else it may backfire.
The first year of Amazon was mainly WoM marketing. No paid ads.
Flipside: If you give them a good experience, they tell 5 of their friends. If you give them a bad experience, they tell 500.
WoM works best if you follow #3, else it may backfire.
#5: Testing
Amazon initially did banner ads on the front page of the NYT.
They moved on to advertising on the internet because it's easy to track. You need to know how much you make for every dollar you put in.
"[Tracking] is a marketer's nirvana in a certain sense."
Amazon initially did banner ads on the front page of the NYT.
They moved on to advertising on the internet because it's easy to track. You need to know how much you make for every dollar you put in.
"[Tracking] is a marketer's nirvana in a certain sense."
#6: Hire Good People
As you build, you need to know that you can't do everything on your own.
All of Amazon's early employees worked really hard.
They'd spend the day coding and maintaining the site, and the night shipping orders out from their Seattle basement office.
As you build, you need to know that you can't do everything on your own.
All of Amazon's early employees worked really hard.
They'd spend the day coding and maintaining the site, and the night shipping orders out from their Seattle basement office.
#7: Dealing with Stress
"Stress primarily comes from not taking action over something that you can have control over"
Stress doesn't come from hard work.
Stress comes from not addressing things that must be addressed. So address them, and see stress
"Stress primarily comes from not taking action over something that you can have control over"
Stress doesn't come from hard work.
Stress comes from not addressing things that must be addressed. So address them, and see stress
#8: What to Work on
Don't be the doctor who left his practice to build an internet biz during the dotcom bubble.
Don't join hype waves. Do interesting things that position you such that the waves catch you
Pick a place to work where your learning per unit time is high.
Don't be the doctor who left his practice to build an internet biz during the dotcom bubble.
Don't join hype waves. Do interesting things that position you such that the waves catch you
Pick a place to work where your learning per unit time is high.
#9: "Let's try it" 
Innovation
Whenever someone has an idea, respond with "Let's try it, and a few hours later we'll know if it makes things better".
Reduce the cost of doing experiments, so people do more and more of them. This is how you innovate.
...
InnovationWhenever someone has an idea, respond with "Let's try it, and a few hours later we'll know if it makes things better".
Reduce the cost of doing experiments, so people do more and more of them. This is how you innovate.
...
Woohoo! So those were 9 lessons from Bezos from the '90s.
What do you think? Which founders should I study next?
Reply with your recommendations
What do you think? Which founders should I study next?
Reply with your recommendations
