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I have this one friend called Dom that has a company with tremendous research and development. His company comes up with new and innovative ideas on a weekly basis. Unfortunately, making those ideas reality is quite hard and requires a large budget which Dom does not really have.
So when we went out to grab some coffee one day, I decided to ask him how the company was able to fund all of these new projects and turn the exceptional ones into new startups. Dom stated the strategy was simple.
According to Dom, most companies chose to spend outrageous sums of money on trying to build those ideas, an unnecessary amount of capital was wasted on simply building the initial idea. Which meant even more money for launching the idea. Which unfortunately raised expenses and lowered profit for the company.
What Dom’s team did instead was to find the most frugal ways for building the idea. That helped them test a diverse range of ideas and see what worked without losing millions on them. Dom’s strategy is one we can all learn from when coming up with new business ideas.
We wish our readers don’t just simply read this story but rather also reflect on the lessons mentioned. See if you can implement any of the lessons taught in your life.
Book: The Bezos Letters (Purchase on Amazon)
- Be resourceful when testing out your business ideas so you do not need to lose large sums of money when they fail.
Amazon is always frugal with its Research and Development so they can build ideas without spending too much money. Plus, when they are frugal building the initial idea, they spend less on launching it.
Which means fewer expenses and more profit…
Notice: All of the content above is fictional.