Principles from Jeff Bezos
Failing Forward: Embracing Growth through Failure - Lessons from Jeff Bezos
Estimated reading time (3 minutes)
Happy Friday, everyone.
Welcome to Principles Friday, where I share one principle that can help you in your life or business, one thought-provoking question, and one call to action toward that principle.
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Principle of the Week
“If the size of your failures isn't growing, you're not going to be inventing at a size that can actually move the needle.” by Jeff Bezos.
In 1994, Jeff Bezos founded Amazon.com as an online bookstore. In the company's early days, Bezos and his team had to work hard to keep the business afloat. One story that illustrates Bezos' willingness to take risks and learn from failure involves the launch of Amazon's first-ever advertising campaign.
In 1995, Bezos decided to invest in a television advertising campaign for Amazon. The company had only been in business for a year, and Bezos was taking a big risk by spending a significant portion of the company's budget on advertising. The ad featured an older man who spoke about the convenience of shopping online and the benefits of Amazon.
The ad turned out to be a complete flop, and Bezos received a lot of criticism for wasting money on a poorly-received ad. But instead of giving up, Bezos learned from the failure and continued to innovate. He recognized that the ad was too serious and lacked the playful, customer-focused tone that Amazon was known for. So he decided to try again, this time with a new approach.
The following year, Amazon launched a new advertising campaign featuring a young woman passionate about books and shopping on Amazon. The ad was fun and energetic, and it resonated with customers. It was a huge success and helped establish Amazon as a major player in the online retail industry.
This story shows Jeff Bezos's willingness to take risks and learn from his failures. He recognized that failure is an important part of the innovation process and that it's necessary to keep pushing the boundaries to succeed.
Question to Ponder
How can you reframe your perspective on failure to view it as a necessary step towards success rather than as something to be avoided at all costs? How can you embrace failure as a valuable learning opportunity and use it to propel yourself forward?
Perspective in Business: Embracing failure is essential to creating meaningful progress and growth in any business. As Jeff Bezos notes, if your losses aren't getting bigger over time, you're not taking big enough risks to make a significant impact.
Perspective in Life: Fear of failure can keep us from pursuing our dreams and taking risks. But failure is a necessary part of growth and learning. It's important to embrace failure as an opportunity for growth and not let it hold us back from reaching our full potential.
Call to Action
Take a moment to reflect on your past failures and how they have contributed to your personal and professional growth. Challenge yourself to take calculated risks that will push you outside your comfort zone and help you reach new heights. Remember, failure is not the end but rather a stepping stone toward success.
Jeff Bezos advises not to “Bet on the Company” because that is called desperation. Rather focus on taking calculated bets. A good framework to use is the “Waterline Principle.”
The Waterline Principle is a concept in risk management that helps you prioritize and manage failures. It involves dividing potential failures into two categories: those above the waterline and those below it. The failures below the waterline are the ones that can sink the ship, while those above the waterline can be managed and are less likely to cause catastrophic damage.
So start by taking risks above the Waterline.
Video of the Week
Here is a video where Jeff Bezos shares the Power of Failure.
If you want to learn more principles, I interview founders on my podcast, The First 100, where they share how they acquired their first 100 paying customers. This week:
Episode 149 - The First 100 with Vidit Agrawal
Episode 148 - The First 100 with Lucy Slack, the co-founding member of Gaia
And that’s a wrap for now!
The beautiful game is upon us! Euro 2024 is set to kick off in Germany, and a supercomputer has thrown its hat into the prediction ring, pegging England as the favorites to lift the trophy.
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