Personal MBA

The Personal MBA
Josh Kaufman

Summary

This book will teach you everything you learn in MBA school with real world examples. It will also tell you that an MBA is not a significant degree.

However, doing an MBA is an interesting topic I’ve thought a lot about because although the knowledge is nothing special (you’ll find a lot of it below), it can give you value in other ways (network, career reset, etc.)

Rating: 4/5

Notes

Large companies move slowly

Climbing the corporate ladder is an obstacle to doing great work

Key is to recognize patterns and build mental models

Business is value creation, customer demand, transactions, value delivery and profit sufficiency/finance

There’s nothing more valuable than an unmet need that becomes fixable

Drive to acquire, drive to bond, drive to learn, drive to defend and drive to feel

10 ways to evaluate a market:

  • Urgency
  • Market size
  • Pricing potential
  • Cost of customer acquisition
  • Cost of value delivery
  • Uniqueness of the offer
  • Speed to market
  • Up front investment
  • Upsell potential
  • Evergreen potential

Rank all out of 10: If under 50 points then pass, if over 75 then go for it

Learn from the competition to create more value

Every iteration of a business has 6 steps:

  • Watch
  • Ideate
  • Guess
  • Which change
  • Act
  • Measure

Give people offering feedback the chance to pre-order

9 values to consider when making a purchase:

  • Efficiency
  • Speed
  • Reliability
  • Ease of use
  • Flexibility
  • Status
  • Aesthetic appeal
  • Emotion
  • Cost

Know the critically important assumptions

Need to create a prototype/MEVO (minimum economically viable offer) and shadow test it before scaling

Market your offer to be remarkable

Know your probable purchaser

Best way to market is education based selling

Framing: emphasize important things and de-emphasize the things that’ aren’t

Coming up with a good hook is very important (emphasize value)

Testimonials are very effective, tell a story

Understand value comparison when pricing

Know your value when pricing a product

Education based selling is worth it to make your customer more informed

Have alternatives and know when to walk away from a bad deal

3 stages of negotiation (make sure to prepare in advance):

  • Setup
  • Structure: understand framing the proposal for the other party
  • Discussion

Don’t give anyone control over decisions affecting your money

Providing free value builds your social capital (reciprocity)

Providing a damaging admission about an offer not being perfect increases trust

Use social proof and referrals to get people to buy

If selling to customers, use risk-reversal (if don’t like, 100% money back guarentee)

Reactivation is easier than acquiring new customers

Understand your value stream from raw materials to customers (maximize for efficiency)

Think about value delivery: giving customers an unexpected surprise

Measure your throughput: rate at which the system delivers to a goal

Scaling is multiplying/duplicating to increase value quickly

The better the systems, the better the business

Create as much value as possible, then capture it to keep the business operating

Understand sufficiency: minimum value to keep the business operating while you can enjoy and afford your life and employees

4 ways to increase revenue:

  • Increase customers
  • Increase average size of transaction by selling more
  • Increase frequency of transaction
  • Raise prices

Understand lifetime value of a customer

To get allowable acquisition cost: (lifetime value – value stream costs – overhead) x (1 – profit margin)

Know the breakeven point

Calculating time value of money: dollar today is worth more than tomorrow

Leverage maximizes potential for gains and losses

ROI is return on investment

Sunk costs are important to consider: cut your losses if they can’t be recouped

The environment dictates which actions your brain takes to get perception under control

Change the reference level and your behaviour will change

All you need to know is something you want is possible and you’ll find a way to get it

Change the structure of your environment and your behaviour will change

Loss aversion: people hate to lose things more than they like to gain them

If you can target people’s loss aversion (money back guarentee), you’ll be more successful

If firing people, do it all at once, not incrementally

Personalizing an issue is a way to hack your brains limitation of not processing information (make the layoff like one of your parents)

Cultivate the right associations

Contrast is making a decision based on the surrounding environment

Use scarcity when selling a product: forces people into making a decisions

Eliminate distractions and conflicts before starting to work

Goals are most useful is framed in positive, immediate, concrete and specific format

Focus on installing one habit at a time

When making a decision, always ask ‘which experience do I want to have’

Read books and evidence that directly challenges your view

Every job has its tradeoffs so learn about them early

Invest in a personal R&D budget (5% of your monthly income)

Utilize comparative advantage: diversity in a team will make you more successful

Make other people feel important

Always remember to treat people with appreciation, courtesy and respect

Add social proof to what you’re selling and your sales will increase

Influence your customers into small commitments and they’ll be more likely to buy

Focus on options, not issues and people will trust you

Figure out the selection test: environmental constraint which keeps business alive

Eliminate unnecessary dependencies

Think about second order effects: the indirect consequences

Complex systems will fail so always be ready

Deconstruct complex systems into subsystems and analyze those

Understand your system’s KPI: key performance indicator

Be honest with yourself about data and have a 3rd party look at it

Think about the confidence interval of your data: bigger sample size = better

Segment customers based on past perforrmance, demographics and psychographics

Pareto 80:20 principle: 20% of something owns/does 80% of the other thing

Know your diminishing returns

Work on removing friction in the business

Have standard operating procedures in place for when something happens

Consider doing nothing when something happens

Well designed fail safes should be in place in case the primary system fails

Never stop constantly experimenting

***
Buy the book here

Free E-book download here

How the World Works  
Noam Chomsky         

Summary

A combination of books Chomsky wrote in the 80s and 90s about America and it's role in the world. Fascinating read and insight into one of the great thinkers of the 21st century

Rating: 5/5

Notes

The US invaded Greece in 1947 and supported a horrendous war which led to 160k Greek deaths. This was the model for Vietnam and allowed American business to gain and thrive

US policies in the 3rd world consistently opposed democracies if they couldn’t be controlled as real democracies believe government should respond to the needs of their own population rather than those of US investors

US-run contra forces in the 3rd world isn’t ordering killing - it’s brutal sadistic torture (Nicaragua, El Salvador, Guatemala)

From the Bolshevik revolution in 1917 till the collapse of the communist governments in eastern europe in the 80s, it was possible to justify every US attack as defense against the Soviets

If you want a global system that’s subordinated to the needs of US investors, you can’t let pieces of it wander off. It’s clearly stated in the documents of record

The US wants ‘stability’ meaning security for the upper classes and large foreign businesses

Solid case for impeaching every American president since World War 2 either outright as war criminals or involved in serious war crimes

El Salvador and Nicaragua were not covered by the US media in the 70s when US-supported brutal torture and murder were taking place

In the early 80s, America’s friends slaughtered 10s of thousands of Guatemalans with countless others tortured and raped

After Vietnam, the major US policy goal has been to maximize repression and suffering of countries demonstrated by their violence - blocked other countries from seeking aid

The US regularly carries out or supports aggression

For most of the 20th century, the US was the dominant economic power and used economic warfare as a weapon ranging from illegal embargoes to enforcement of weak IMF rules with their military becoming pre-eminent

The US tries to avoid negotiations with countries as the US fears it will lose and other countries will be better off

When a state has huge debts, it must divert the population from what’s happening and they do this by inspiring fear of our enemies (Russia in Europe)

The real enemy of the US has always been ‘the poor who seek to plunder the rich’. In America, it’s the opposite and has been for generations

‘The war on drugs’ was a manufactured media blitz by the US leadership to distract the population, increase repression in inner cities and build support for attack on civil liberties

The US government blocks international effort to seek peace (Russia and Ukraine)

Major media are large companies owned and interlinked with even larger conglomerates. The market is the advertisers and the product is audiences

The power in the US lies in the hands of people who determine investment decisions as they determine production, distribution and staff the government. They want a passive, quiescent population

The struggle of freedom is never over and requires active and sustained efforts

One important consequence of globalization is it extends the third world model to industrial nations where the average person has their jobs shipped away while the rich and elite continue to amass massive amounts of wealth

We’ve moved to an international state with the IMF, World Bank, G7 & EU, WEF where the general population doesn’t know what’s happening and it doesn’t know it doesn’t know

If the borrowing the US has done was used for constructive purposes like investment or infrastructure, the US would be better off, but it was used to enrich the rich - for consumption, financial manipulation and speculation which are all harmful

The class warfare of the last few decades has successfully weakened popular organizations leaving people to feel isolated

The US is so deeply in debt to the international financial community because of debt that they have a lock on US policy

Many of the large number of security council resolutions vetoed by the US have to do with Israeli aggression or atrocities

Invaders typically use local collaborators to run things for them by playing upon existing rivalries to get onne group to work for them against another

European wars were wars of extermination. If we were to be honest about history, we would simply describe it as barbarian invasion

There has always been racism but it developed as a leading principle of thought in the context of colonialism. 

A standard technique of belief formation goes along with oppression

In the US, you’re not allowed to talk about the class differences, which is the real issue

When the US establishment talks about jobs, it means profits for its corporations

The elite are masters and they follow what Adam Smith said about ‘the vile maxim’ - all for ourselves and nothing for anyone else

People who aren’t owners and investors have nothing much to say in the US

Jefferson warned against banking institutions and corporations and said if they grow, aristocrats would’ve won and the revolution would’ve been lost

The ‘Free market’ is for the poor. We have a dual system - protection for the rich and market discipline for everyone else

There’s been a considerable increase in inequality and has the American society moving towards a third world model, thereby seeing increased crime and signs of social disintegration

A huge area of the media is dedicated to diverting people and making them more stupid and passive

There’s nothing individualistic about corporations who are totalitarian in nature

Free trade agreements result in reduced wages for local employees while predominantly benefiting the rich consumer while also destroying unions

Operation Paper Clip imported large number of known Nazi criminals

The American army’s counter-insurgency literature begins with an analysis of the German experience in Europe written with the co-operation of Naxi officials (instruments of statecraft - book)

US involvement in Chile with the coup in 1973 to reduce social democracy

The threat of a good empire is what the US worried about with reforms on uncontrolled capitalism

The US killed a few million people and destoryed 3 countries during the Vietnam war

A huge amount of business propaganda is to create wants

The answers to solve all these issues is to organize. Being alone you can’t do anything but if you join with other people, you can make changes

Under capitalism, investment is supposed to be as risk free as possible. No competition wants free markets - what they want is power

The government subsidizes corporations’ costs, protects them from market risks and lets them keep the profits

There’s never been much difference between the 2 business parties and the differences are disappearing

The CIA has been involved in drug running for generations (the politics of heroin book)

You need something to frighten people with, to prevent them from paying attention to what’s really happening to them. You have to engender fear and hatred

The first world lives in a highly indoctrinated society

Neoliberalism is nothing more than the imperial formula: free markets for you and plenty of protection for me. The rich would never accept it but they’re happy to impose it on the poor

The UN does mostly what US business wants

‘Politics is the shadow cast on society by big business’ - John Devery

If people dedicate themselves to organizing and activism, we’ll gain access to broader audiences

If you extrapolate to the future, it’s very ugly but the point is it’s not inevitable. It can be changed but we can’t change things till we understand them.

***

Buy the book here

Free E-book download here

Personal MBA

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The Personal MBA
Josh Kaufman

Summary

This book will teach you everything you learn in MBA school with real world examples. It will also tell you that an MBA is not a significant degree.

However, doing an MBA is an interesting topic I’ve thought a lot about because although the knowledge is nothing special (you’ll find a lot of it below), it can give you value in other ways (network, career reset, etc.)

Rating: 4/5

Notes

Large companies move slowly

Climbing the corporate ladder is an obstacle to doing great work

Key is to recognize patterns and build mental models

Business is value creation, customer demand, transactions, value delivery and profit sufficiency/finance

There’s nothing more valuable than an unmet need that becomes fixable

Drive to acquire, drive to bond, drive to learn, drive to defend and drive to feel

10 ways to evaluate a market:

  • Urgency
  • Market size
  • Pricing potential
  • Cost of customer acquisition
  • Cost of value delivery
  • Uniqueness of the offer
  • Speed to market
  • Up front investment
  • Upsell potential
  • Evergreen potential

Rank all out of 10: If under 50 points then pass, if over 75 then go for it

Learn from the competition to create more value

Every iteration of a business has 6 steps:

  • Watch
  • Ideate
  • Guess
  • Which change
  • Act
  • Measure

Give people offering feedback the chance to pre-order

9 values to consider when making a purchase:

  • Efficiency
  • Speed
  • Reliability
  • Ease of use
  • Flexibility
  • Status
  • Aesthetic appeal
  • Emotion
  • Cost

Know the critically important assumptions

Need to create a prototype/MEVO (minimum economically viable offer) and shadow test it before scaling

Market your offer to be remarkable

Know your probable purchaser

Best way to market is education based selling

Framing: emphasize important things and de-emphasize the things that’ aren’t

Coming up with a good hook is very important (emphasize value)

Testimonials are very effective, tell a story

Understand value comparison when pricing

Know your value when pricing a product

Education based selling is worth it to make your customer more informed

Have alternatives and know when to walk away from a bad deal

3 stages of negotiation (make sure to prepare in advance):

  • Setup
  • Structure: understand framing the proposal for the other party
  • Discussion

Don’t give anyone control over decisions affecting your money

Providing free value builds your social capital (reciprocity)

Providing a damaging admission about an offer not being perfect increases trust

Use social proof and referrals to get people to buy

If selling to customers, use risk-reversal (if don’t like, 100% money back guarentee)

Reactivation is easier than acquiring new customers

Understand your value stream from raw materials to customers (maximize for efficiency)

Think about value delivery: giving customers an unexpected surprise

Measure your throughput: rate at which the system delivers to a goal

Scaling is multiplying/duplicating to increase value quickly

The better the systems, the better the business

Create as much value as possible, then capture it to keep the business operating

Understand sufficiency: minimum value to keep the business operating while you can enjoy and afford your life and employees

4 ways to increase revenue:

  • Increase customers
  • Increase average size of transaction by selling more
  • Increase frequency of transaction
  • Raise prices

Understand lifetime value of a customer

To get allowable acquisition cost: (lifetime value – value stream costs – overhead) x (1 – profit margin)

Know the breakeven point

Calculating time value of money: dollar today is worth more than tomorrow

Leverage maximizes potential for gains and losses

ROI is return on investment

Sunk costs are important to consider: cut your losses if they can’t be recouped

The environment dictates which actions your brain takes to get perception under control

Change the reference level and your behaviour will change

All you need to know is something you want is possible and you’ll find a way to get it

Change the structure of your environment and your behaviour will change

Loss aversion: people hate to lose things more than they like to gain them

If you can target people’s loss aversion (money back guarentee), you’ll be more successful

If firing people, do it all at once, not incrementally

Personalizing an issue is a way to hack your brains limitation of not processing information (make the layoff like one of your parents)

Cultivate the right associations

Contrast is making a decision based on the surrounding environment

Use scarcity when selling a product: forces people into making a decisions

Eliminate distractions and conflicts before starting to work

Goals are most useful is framed in positive, immediate, concrete and specific format

Focus on installing one habit at a time

When making a decision, always ask ‘which experience do I want to have’

Read books and evidence that directly challenges your view

Every job has its tradeoffs so learn about them early

Invest in a personal R&D budget (5% of your monthly income)

Utilize comparative advantage: diversity in a team will make you more successful

Make other people feel important

Always remember to treat people with appreciation, courtesy and respect

Add social proof to what you’re selling and your sales will increase

Influence your customers into small commitments and they’ll be more likely to buy

Focus on options, not issues and people will trust you

Figure out the selection test: environmental constraint which keeps business alive

Eliminate unnecessary dependencies

Think about second order effects: the indirect consequences

Complex systems will fail so always be ready

Deconstruct complex systems into subsystems and analyze those

Understand your system’s KPI: key performance indicator

Be honest with yourself about data and have a 3rd party look at it

Think about the confidence interval of your data: bigger sample size = better

Segment customers based on past perforrmance, demographics and psychographics

Pareto 80:20 principle: 20% of something owns/does 80% of the other thing

Know your diminishing returns

Work on removing friction in the business

Have standard operating procedures in place for when something happens

Consider doing nothing when something happens

Well designed fail safes should be in place in case the primary system fails

Never stop constantly experimenting

***
Buy the book here

Free E-book download here