In 2014, Jeff Bezos, the founder, and CEO of Amazon, sent a now-famous letter to shareholders. In it, he outlined 14 key principles that have guided Amazon’s growth and success.
These principles are relevant for any business, no matter what size or stage of growth. If you want to build a successful business, you would do well to learn from the master himself.
Table of Contents
1. Customer Obsession
2. Ownership
3. Invent and simplify
4. Think big
5. Bias for action
6. Frugality
7. Earn trust
8. Dive deep
9. Have backbone; disagree and commit
10. Deliver results
11. They’re not glued to the past
12. The outside world is an invention
13. High standards (including for hiring)
14. Focus on the key inputs for your business
1. Customer Obsession
The first principle is “customer obsession.” This means that your company should be focused on the needs and wants of your customers, not on your own internal goals and objectives.
2. Ownership
The second principle is “ownership.” This means that every employee should feel like an owner of the company, with a personal stake in its success or failure.
3. Invent and simplify
The third principle is “invent and simplify.” This means that you should always be looking for ways to simplify your processes and make your products more user-friendly.
4. Think big
The fourth principle is “think big.” This means that you should always be thinking about ways to grow your business, even if it means taking risks.
5. Bias for action
The fifth principle is “bias for action.” This means that you should always be moving forward and taking action, instead of waiting for things to happen.
6. Frugality
The sixth principle is “frugality.” This means that you should always be looking for ways to save money and be efficient with your resources.
7. Earn trust
The seventh principle is “earn trust.” This means that you should always be honest and transparent with your customers, and build a reputation for being reliable and trustworthy.
8. Dive deep
The eighth principle is “dive deep.” This means that you should always be looking for ways to improve your products and services by learning more about your customers and your industry.
9. Have backbone; disagree and commit
The ninth principle is “have backbone; disagree and commit.” This means that you should be willing to stand up for your convictions and make decisions even when there is disagreement.
10. Deliver results
The tenth principle is “deliver results.” This means that you should always be focused on achieving results and meeting your goals.
11. They’re not glued to the past
The eleventh principle is “they’re not glued to the past.” This means that you should always be open to new ideas and ways of doing things, and not be afraid to change course if necessary.
12. The outside world is an invention
The twelfth principle is “the outside world is an invention.” This means that you should always be looking for ways to improve your products and services by learning from other industries and disciplines.
13. High standards (including for hiring)
The thirteenth principle is “high standards (including for hiring).” This means that you should always be looking for ways to improve your products and services by hiring the best and brightest employees.
14. Focus on the key inputs for your business
The fourteenth and final principle is “focus on the key inputs for your business.” This means that you should always be focused on the things that are most important for your business, and not get distracted by the things that are not.
Conclusion:
The Bezos Letters lays out 14 key principles that have helped Amazon grow into the powerhouse it is today. While not all of these principles will be relevant to every business, there are certainly lessons to be learned from Amazon’s incredible success. By focusing on the customer, thinking long term, being patient, innovative, and relentless, businesses can create their own path to success.