Guide School of Hard Knocks: The Re-Education of Jim Reid

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And it teaches that control and that you go here for this amount of time and then you go back and they measure the wrong things, too.


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Why do you do that? Why is that important to you? Could it be done a different way? And for me, that was a massive inconvenience. And the way I got perspective was seeing other people doing better things with their time.

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And I guess a lot of people would be lazy. What are the 3 things that you would say to that Martian? Do you want the 8-foot rubber blowup dinghy or do you want a foot cruiser? It will be just—because Freedom Ocean was always named based on this concept of having the freedom to choose. Reduce compromise as much as possible.

You can make more money but work yourself to death. And the Martian can create a lot of value because everyone would be interested in what life on Mars is like. Problem solving and to learn what we can about how that delivers value to the customer and then to ramp up the good things and just keep leveraging it, or as The Lean Startup guy would say, pivot or persevere and just keep on doing it. But one of the things I saw in just a recent chapter that I read was where Jobs came into Apple the second time around and saw all the product lines that he had and he drew a simple matrix which from memory had desktop, laptop, consumer business person.

And he said he wanted a product for each of those 4 quadrants and that was it. That was Apple going into the future and he kind of just got rid of all the other stuff. And then you have the M-class, which is for the family. SUV, the sports utility vehicles. There was the gay people and there was the people who valued safety but lived in small places, like elderly people, retirees with lots of money, could afford a more expensive small car but had small unit spaces to park in. And then I would map out those demographics and start finding more people just like them. So word of mouth referral was far more interesting with an A-class than with all the other models because those people had to defend their decision to everyone at the next barbecue or the dinner party.

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Because it was quite weird when it came out. You had a great January. So now we can actually map out which products we sell, who do we sell them to, how much does it cost us on a fixed and variable cost to supply that, so the cost of goods sold, and what happens when we scale that. How many of those people are repeat buyers? How many people buy all of our products? You know that with my model, I put my business in a circle and I put the customer in the center of that circle.

And that customer may deal with many parts of our business like the segments of a pie. Again, I learned that in the car dealership. The same customer would deal with servers, will deal with sales, will deal with finance, will deal with parts, and they will work their way on each part of the business. I even did a document on this in called One Customer.

Share the customer! Introduce them to each other! So that same customer, probably a lot of our podcast customers, are customers of many parts of my business. So things that we innovated at the beginning of January for one of our teams is now across the entire company like a wildfire. What do you do?

Let me visualize that. Visualize that circle for me. I count them as traffic. So everything outside the circle like marketing, things that push traffic into your business. Support team look after every part of it and the customer is able to move freely around your circle but still be close to the center.

You want the lifetime customer. Do you have—. And you can do that either using labels like a filing cabinet. Some systems like Office Auto Pilot or Infusionsoft have labeling. Or you can do it using different lists within the one customer database. So I can actually identify which products that person has and at what level. Obviously I can look up a customer record and see all the things that they own. And then they hop between. So now I know this is a fresh list. This is my very best customers, the most recent purchase, and the most current customers in the database.

You go to the market with the minimum possible product, so about not being a perfectionist. Once you put the product out there, you find out what value the customer places in that product. And if they place a value in it, find out what that value is. It may be something that you thought it was, it may not be. They might like a little bit of the product or they might want more than your whole product. So you could have a zoom-in pivot where you zoom in on one part of the product and throw away the rest, or a zoom-out pivot where you pull back and add more things to the minimum viable product to make it a bigger product.

But there are other pivots as well. They tell me their feedback, I see what I can learn from that and then I decide what I want to change and then I move forward. And I pitched that master class to them and very few buy it, right? I tell you where the pitch should be and I just got to get around to doing this. Well, we saw this with Traffic Grab. One of my biggest audiences was business owners or marketers buying it for their team. You know how we figured that out?

Because we were getting a lot of support request saying can I share this with my team member, with my staff. And we say sure and we make it available for their team.

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What you get is you get a learning outcome. In particular, you might pull one or two of the most popular modules out and put them into your sales copy and use the highlights from that and do what I did with the A-class people. Go to the customers who purchased it and say what was the one thing that really impressed you the most about this product. And get their words and put that back on the sales page as the testimonial, like in inverted commerce, and see if you can appeal. But you might need to also consider what other marketing channels are suitable for this particular product.

And keep doing it! And keep refining the product. The product itself is fine. I mean, the concept of, say, an automobile is still like a hundred years old but it keeps pivoting. It keeps being developed and changes make it new and exciting for different customers. What else you got, mate? The dog is making an enormous amount of noise.

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Commencement by Lawrence Cherry

I can hear the dog. So selfish! James was elected to Parliament as a representative of the Social Democratic Party in He became the first president of the second New Zealand Labour Party in , when Elizabeth was also elected onto the party executive. In Elizabeth McCombs began a long association with local politics when she was elected to the Christchurch City Council. Women had gained the right to stand for Parliament in The opportunity presented itself again in August when her husband died, forcing a by-election in the Lyttelton seat.