Ed and I discussed four legendary individuals in our second installment of Entrepreneur Heaven: Steve Jobs, Thomas Watson, Sr., Charles Revson, and Mary Kay Ash. We also answered a listener question.
Steve Jobs (1955-2011)
In 1975, Jobs sold his VW microbus and Wozniak his scientific calculator, raised $1300.
Steve Jobs 7 Principles of innovation
Do what you love
Put a dent in the universe
Kick-start your brain (creativity = connection)
Sell dreams, not products
Say no to 1,000 things—I’m as proud of what we don’t do as I am of what we do
Create insanely great experiences
Master the message—story telling (“You’ve baked a really lovely cake, but then you’ve used dog shit for frosting”)
Other thoughts
"Customers don’t innovate; they iterate."
“Innovation distinguishes between a leader and a follower.”
Apple Store NYC (opened 2001): Sales: $4,032/sq. ft vs. Tiffany’s $2600.
Retail consultant David Goldstein: “I give them two years before they’re turning out the lights on a very painful and expensive mistake.”
“Commentary: Sorry, Steve: Here’s Why Apple Stores Won’t Work,” BusinessWeek, May 21, 2001
Made sense on spreadsheet; but emotional experiences are not well captured on Excel spreadsheets.
Jobs benchmarked Four Seasons hotel for the store! Genius bar, concierge, etc.
Stanford University, “You’ve Got to Find What You Love” June 14, 2005
Oral History Interview with Steve Jobs, Smithsonian Institution, April 20, 1995
Thomas Watson (1874-1956)
Ed and the Think Pad He still has from IBM
See Richard S. Tedlow’s book, Giants of Enterprise: Seven Business Innovators and the Empires They Built.
Also, The Book of Entrepreneurs’ Wisdom: Classic Writings by Legendary Entrepreneurs, edited by Peter Krass.
Charles Revson (1906-1975)
“The reason women by cosmetics is because they buy hope.”
Born Somerville, MA in 1906, father was a cigar roller.
No formal education, tough childhood, parents both Russian-born Jews (Revson = rabbi’s son).
With brother Joseph and Charles Lachman, formed Revlon, March 1, 1932 (Charles was 25)
Used to recall products based on just a complaint or two.
Did not want to compete on price, and he knew his company was not efficient!
Fashion accessory, not a beauty aid (selling turn of a head, touch of class).
Different shades for different outfits, moods, occasions.
Great admirer of GM—brand for each purpose and purse.
Fire and Ice: incredibly successful advertising campaign.
See one of Ron’s all-time favorite business books, the unauthorized biography of Charles Revson: Fire and Ice: The Story of Charles Revson—the Man Who Built the Revlon Empire
Mary Kay Ash (1918-2001)
Mary Kay Ash authored three books:
Her Autobiography: Mary Kay
Listener Question
1 May 2015
I've been listening to you guys for a few months now. I came across Ron Baker's work in a workshop I did called "Law Firms of the Future". I Realised now that the facilitator has ripped off most of the content, but it was valuable. I've tried introducing a version of value billing to my law firm. I bought it as a sole practice 2 years ago. I now have one employee solicitor who has complete autonomy (except that I pay his professional indemnity insurance, so he won't really have full responsibility for his mistakes). What I really hope is that Ron is wrong when he says that economy of scale doesn't apply to a law firm. I hope it applies up to a point, say maybe 5 to 10 solicitors, which I hope to have? I'm still struggling with the old fashioned business model for law firms though, and am trying to think of a way to introduce some subscription service or retainer system for the ordinary mum and dad client. Love to hear a brief comment on this in one of your Free Rider Fridays.
Jacqui: There is a difference between leverage and economies of scale. I think at the level you are shooting for (5-10 employees), leverage can add to profitability.
For a study of this very issue, albeit done on accounting firms, check out this wonderful whitepaper by our friend Ric Payne: The Performance Characteristics of Accounting Firms that are Sending Their Owners Home with at Least $1 Million.