| Teaching Notes & Study Guide | ||
| Key Ideas.
Key Idea #1: .You trade your time for a business. In the course of their work, John Carmack, John Romero and Adrian Carmack (no relation) discovered an idea for a new type of computer game. Their employer was not interested in the idea, so in addition to working 60 hours a week for their employer, the three met for 30-40 hours per week to develop their new idea which led to their own company, id software. Today all three are millionaires, yet they still work long hours. They love what they are do and don't think of creating computer games as work. Their work environment encourages people to hang around -- lots of juice in the refrigerator, a pool table, couches and quilts, Nintendo room, a "dressdown" code, music, all-doors-open policy, and an understanding of one another that comes from a shared vision. You think back: Have you ever heard that you can build a business in eight hours per week and earn $100,000 per year? Answer: This is a typical multi-level pitch. While some in these organizations do earn a lot of money, if you talk with them, you will discover that they, too, work long hours. What do you like doing so well that you could do it 100 hours a week with no guarantee of success? Do you have an idea that you are willing to work on just to see if it can be profitable? Remember, the founders of id software had no guarantee of success. They worked long hours hoping that their idea would generate them enough money to simply create the next game. Big
Idea #2: When you let the marketplace experience What do you think? Can you think of other companies who use this technique? Answer: Samples of cereal, soap, fragrance and other consumer products have been delivered to my door. In many grocery stores, you can taste samples of prepared foods. In the world of advertising, this is called, "trial." What do you think? Why was id software's idea so efficient and profitable? Answer: They made the sample available to the audience for which it was developed. I say it was the perfect product in front of the perfect prospect at the perfect time. Many of us work on this for a lifetime. Good for id software that they hit with the first product. Key Idea #3: Create a team of people who have diverse skills. At id software, each individual knows what is expected of him, so there is no need for written job descriptions or project plans. Ideas are simply tossed back and forth between team members which is much more efficient than written memos. You think back: Trust must exist between partners if they attempt to duplicate id software's working style. How is trust developed? Answer: Trust is a process that develops over
time. As people do what they say they're going to do and do it at a high level
of competency, they establish themselves as trustworthy. Key Idea #4: Collect your debts, but do it right. Attorney John Dolan reminds us that "The federal government passed a law called the Fair Debt Collection Practices Act, and what it basically says is you need to collect your debts in an appropriate fashion. So you don't want to call people at 3 AM, and you don't want to send Vito the leg-breaker to beat down their front door, and you don't want to call and abuse people at their workplace. If you do, you could be in trouble." What do you think? Can collection problems stem from your own poor business practices? Answer:
Sure. The best practices include clear communication at the beginning of any relationship. Next comes the paper process to which you stay committed. The best company on this subject we have ever studied is Medallion Funding, and, you'll find |
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