Jeff Bezos started Amazon in his parents’ garage in 1994, when everyone thought the internet was a fad. Over the years he grew Amazon from a small online bookstore into the largest online retailer. But how did he do it? Here are five reasons Jeff Bezos was so successful:
1. The Regret Minimization Framework
A lot of people think you need to drop out of college or quit a terrible job to start a business. But Jeff Bezos was different: he was already successful.
He had a well-paying job and a stable career in New York City when he became obsessed with his idea for Amazon. After Jeff told his boss he wanted to quit so he could start a business, they went for a long walk around Central Park for two hours. Jeff’s boss agreed that Amazon sounded like a good idea, the only problem was, his boss thought that it would be a better idea for someone who didn’t already have a great career.
But Jeff was already a very successful man, so even he failed, he had a backup plan. It was that Regret Minimization Framework that gave Jeff the push to take the leap of faith and start Amazon.
2. Screw Your Competition; It’s The Customer That Matters
Jeff Bezos understands that if you want to be successful in business, you have to please the customer.
While many companies are worried about having competition, Jeff knows that if you win the customer, there is no competition. He said that a company’s most important intellectual property is its brand.
With Jeff’s guidance, he ensured Amazon kept its brand image by providing quality service, fast shipping, and convenience for Amazon customers. Jeff created Amazon so that it aligned perfectly with human wants. Everyone who buys online wants the process to be as easy as possible and they want their order to arrive as soon as possible.
3. Know How To Identify Trends
Jeff knew that the internet was going to be revolutionary, even though many people didn’t see it at the time, and that it had massive potential. He knew where the world was heading and he wanted to invest in the future.
His background on wall street in the technology industry also gave him an edge when it came to understanding business and trends. For example, Jeff started by selling books. He also knew that no physical store would be able to carry a “complete” range of books; it was too difficult to maintain that much inventory. An online store, however, could do this easily.
4. A Vision From The Start
Even in the beginning, Jeff Bezos knew that Amazon was going to be an “everything” store. He may have started off by selling books, but Jeff had bigger long-term plans.
Having a vision when you start gives your business direction. When you try to do everything in the beginning, it’s easy to fail. You spread yourself too thin. That’s why Jeff wanted to master selling books online before he added on as second or third category.
A lot of businesses try to milk their profits in the short-term and have no vision for the long-term. Jeff made sure that Amazon was different – he still encourages long-term investments even if they don’t bring an immediate return on investment (ROI).
5. Not Afraid To Take Massive Risks
Jeff Bezos has said that he has had “billions and billions of failures at Amazon.” Things didn’t always work out for Jeff, but when they did, they were hugely successful.
Amazon Prime, a paid subscription service that offers extremely fast shipping, internet music, and video streaming is one of the examples of a risk that paid off huge. Jeff knew that people are willing to pay for convenience and that recurring revenue from Prime members is a great way to fund innovation and growth.
Jeff said, “nine times out of ten, you’re going to fail. But every once in awhile, you’ll hit a home run that in business terms is more like 1,000 runs.” While many businesses prefer to play it safe, Jeff pushes the boundaries with Amazon and these risks turned Amazon into the king of online retail.