This is the excerpt of widely circulated notes by Tang Binsen, a famous gaming entrepreneur in China whose company created Clash of Kings, among other games and tools. See Part 1 here.
Pitfall 5: Forgetting that the world is not evenly distributed
- We often say that 80% of your wealth is created during 20% of your time – which basically means 80% of your time is probably not productive. It is worth reflecting whether you are productive or not at the current moment
- If you are number 20 in a good industry, you will still probably better off than number 1 in a bad industry. In China, gaming industry is definitely better than SaaS.
- Choosing which industry to go in is very important. If you see a group of founders, do not ask what they do, ask which industry they are in – you will probably figure out who is doing better, who is not.
- Many easy things are competitive and not scalable; many seemingly difficult things lack competition and can be easily scalable – and they cost the same amount of energy and effort versus you doing easy things.
- Good products are simple – so are good business models.
Pitfall 6: forgetting about the effect of compounding
- If you are confident about the future, you need to be patient about the present. Your investment will compound in a promising market.
- If you believe in the long term, focus more on your product, less on advertising. If you do not believe in the long term, then you just focus a hell lot more on marketing.
- Strategy involves decisions that give you compound interests; tactical decisions do not.
- So as a founder often you need to think more about long term and strategy, and in a way less about tactics.
Pitfall 7: Overlooking the organisational development
- Good founders treat their organisations as a product to build (think ByteDance).
- Focus a lot of problem solving from a people’s perspective – that’s how you build up an organisation.
- If you want to groom good people, then you focus on their potential. You find people who have the potential rather than people who have the experience.
- If you find people just to fill in posts – then you are not thinking long term enough.
- If you feel that you are being used by your employees, your employees would probably be thinking the same. This is not good for the team.
Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at [email protected].