Business Rules of Thumb

by Chip Conley and Seth Godin

Book Overview

No Synopsis Available.

• Format: Paperback
• Language: English
• ISBN: 0446370266
• ISBN13: 9780446370264
• Release Date: January 1987
• Publisher: Warner Books (NY)
• Length: 165 Pages
• Weight: 0.44 lbs.
• Dimensions: 0.6" x 5.3" x 8.0"

Customer Reviews

Starting a business

Purpose: 1.the project focused on the methods and means by which executives make business decisions. The research group discovered that executive decision makers use their intuition or past experiences as the chief influence in their decision making. Personal rules of thumb were the overwhelming favorite instrument used by these executives in navigating through business life. Starting a Business 1. Limit the number of primary participants to people who can consciously agree upon and contribute directly to that which the enterprise is accomplish, for whom, and by when. 2. Define the business of enterprise in terms of what is to be bought, precisely by who, and why. 3. Concentrate all available resources on accomplishing two or three specific, operational objectives within a given period of time period. 4. Prepare and work from a written plan that delineates who in the total organization is to do what, by when. 5. Employ key people with proven records of success at doing what needs to be done in a manner consistent with the desired value system of the enterprise. 6. Reward individual performance that exceeds agreed upon standards. 7. Expand methodically from a profitable base toward a balanced business 8. Project, monitor, and conserve cash and credit capability. 9. Maintain a detached point of view 10. Anticipate incessant change by periodically testing adopted business plans for consistency with realities of the world marketplace. Other Starting Business Rules: 1. The less time and money it takes to start and manage a company, the more likely it is too survive. 2. In starting a new business select a small or medium community where reputation can be built quickly. 3. Happiness is a positive cash flow 4. The key elements for a successful new venture: 1. Experienced management team 2. Potential for becoming a significant company 3. Technical excellence 4. Sound, sensible business-plan 5. Focused strategy 6. Sense of urgency. 5. Venture capitalist rank of importance: 1. Management team (30-50% Local, 60-90% National, and 50-60% manufacturing) 2. Location 3. Product/services 4. Marketing/Finance plans 6. Fear engenders conformity and is a powerful barrier to creativity. Try to reduce the importance of fear of failing on your career. 7. Venture capitalist are typically looking to liquidate small company investments three to seven years down the road at a return of 35 to 60 percent annually. 8. A startup company should never be in more than one market. 9. The combined costs of sales and marketing should not exceed 5 percent of net profits. Sales 1. Put the biggest enticement in the headline 2. Be repetitive Product maturity 1. A product may be mature, as indicated by, weakening brand preference 2. Narrowing physical variation 3. Entry in force of private-label competitors 4. Market saturation 5. Stabilization of production methods. Strategy 1. You only have to be 1 percent better than your competition in order to succeed. In the mind of the cus