Lessons from Amazon

Check out Invent and Wander — The Collected Writings of Jeff Bezos

1. Focus on the long term
2. Focus relentlessly on the customer
3. Avoid powerpoint presentations- have 6 page memos
4. focus on big decisions
5. hire the right people — hire people smarter than you, compensation early on through stock options

• Metrics to measure growth by — customer revenue growth, the degree to which customers continue to purchase from us on a recurring basis, strength of our brand
• Invest to expand customer base, brand infrastructure as you move to establish an enduring franchise
• have share holder letters
• overtime expand product and service offerings
• goal for growth- growth in the number of customers and the strength of the relationships we have with them, expand partnership programs
• ****drive toward profitability
• each new product and service makes you more relevant to a wider group of customers
• split up a year into quarters
• the customer franchise is your most valuable asset
• limiting share count means more cash flow per share and longterm values for owners
• what’s good for customers is good for shareholders
• grow new businesses from tiny seeds

Think About Finances

free cash flow- net cash provided by operating activities less purchases of fixed assets