The so-called flywheel effect means that in order to make the stationary flywheel rotate, you must use a lot of effort at the beginning, pushing it repeatedly, and each turn is very laborious, but every turn will not be in vain. Every turn of the flywheel will form its own potential energy, and the flywheel will rotate faster and faster. After reaching a certain critical point, the potential energy of the flywheel will become part of the driving force. At this time, you don’t need to spend more effort, the flywheel will still rotate quickly and constantly.
When you make a series of wise decisions and execute them accurately, it is like you shake the rocker. As the rocker gets faster and faster, the flywheel speed becomes faster and faster, and your business can also grow rapidly.
So what is the key decision to drive the huge flywheel of Amazon ? Bezos mentioned in the 2014 shareholder letter that the business he chose has four attributes, namely:
first has customer needs;
second, has a large scale;
third, has a high return on capital;
fourth, can fight against time.
Many people will ask, don’t all companies do this? No.
For example, barber shops, this industry has customer demand and a high return on capital, but it is difficult to form a scale. There is also real estate, which has customers, scale, and return rate, but it cannot compete with time. After housing is met, everyone's demand will decline.
flywheel rotates with a main mandrel; for example, Amazon's main mandrel is customer-centric. This looks very simple and is also talked about by many companies, but when we are doing it, it is difficult to do it. When we are compiling an order, especially a large order with a high amount, will you arrange for the company's elite to participate in business meetings, customer Q&A and other work before bidding? But when the order is signed, everything will be entrusted to delivery, and this group of elites will rush to the next battlefield.
is correct to be customer-centric. It is definitely to serve the customer well after obtaining the order, rather than withdrawing the elites and snatching the order. When Bezos founded the Amazon platform, it set up a content evaluation function, but there were many negative reviews. Many people suggested deleting this function because it would affect the sales of the product. However, Bezos believes that what we serve is customers, not products, and customer satisfaction is the ultimate goal, so this comment is retained.
Personally, we have found an industry that can rotate the flywheel. We usually say that men are afraid of entering the wrong industry and women are afraid of marrying the wrong man. How to filter? It's still the 4 o'clock on Amazon.
first; has customer needs;
second, has a large scale;
third, has a high return on capital;
fourth, can fight against time.
find a good industry and try every means to turn your flywheel so that your skills can add speed to this flywheel. If you are making software, you may have to be familiar with the hardware. If you are working on software, you must be familiar with the software, because future products will be combined with hardware and software.
