Tag: entrepreneurs

The Mistake Most Entrepreneurs Make


What’s one of the biggest mistakes most entrepreneurs are making?

In “How Google Works” author Eric Schmidt says, “The Internet has caused transaction costs to plunge so steeply that it has become much more useful to read Coase’s law, in effect, backward: Nowadays firms should shrink until the cost of performing a transaction internally no longer exceeds the cost of performing it externally…

Most companies have taken this approach purely for operational and cost-cutting reasons: They save money by outsourcing jobs to lower-wage markets… But they miss an important point.

In the Internet Century, the objective of creating networks is not just to lower costs and make operations more efficient, but to create fundamentally better products.”

Notice what Eric says: “FUNDAMENTALLY BETTER PRODUCTS!!!”

Ignore what most people are telling you about business and how you can just outsource everything and contract everything out to drive up profit.

Forget most of the business books you see being sold. Go straight to the top.

The folks at Google have executed as well as anyone in history.

They used every tool at their disposal to improve the world of their customers.

We live in a world of reciprocal altruism. The quickest way to get wealthy is to offer a product of immense value. Offer your customers 10 times value compared to the price you charge.

entrepreneurs, mistake most entrepreneurs make, the quickest way to get wealthy, immense value

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