In this post, we are going to talk about a book that we will be able to easily teach all the basic aspects of an MBA. This book is Josh Kaufman’s The Personal MBA Book. So, let’s see The Personal MBA Book Summary in detail.
The Personal MBA Book Summary :
When Josh Kaufman completed his studies, in a technical field he got an amazing opportunity to work for a billion-dollar company PROCTER AND GAMBLE.
Which he accepted happily, and started working over there. When he was working with his colleagues, who all were MBA Pass out from big colleges. He realized a very important thing, that how Important Business and Marketing skills are.
If in the future, he wanted to start something of his own, then he must be aware of these skills. So he was so much obsessed about these skills that anyhow he wanted to learn it.
So at first, he decides, just like his colleagues he will do his MBA from a big college. But after analyzing properly, and after doing a lot of research by going to different colleges.
He knows, that now a day’s colleges are just for show off. And people go there just for the sake of Degree, not for educational purposes. Which was according to him and as a company head was a waste of time and energy.
So he chooses a better way to learn these skills. And that way was SELF EDUCATION. What he did was ? he went to his nearby Library and started reading books related to business.
He read 100 different books related to business. Because of which what happened, after some time, his knowledge has improved more than his colleagues, in fact, more than his colleague’s college professors.
Not on this, but continuous Reading, made him realized one important and interesting thing. That there were some topics that were repeating. So he came to know that these topics, which are getting repeated are the most important for the business.
As per the 80-20 principle, these were that 20 percent knowledge which gives 80 percent results. Hence, he gathered all the important repeated knowledge and created a book, which is known as THE PERSONAL MBA. That whose we discuss in this post.
After Reading hundreds of Different books, Josh learned very important useful knowledge and also came to know about the repeated knowledge. Josh divided all that knowledge in 5 mental Framework and explained to us in this book under which is…
1) THE VALUE CREATION
2) MARKETING
3) SALES
4) VALUE DELIVERY
5) FINANCE
Josh says if any part will be missing in any business, then that is not a business. Because in a business, where value is not added, is called a hobby.
In business if there will not be proper marketing then it will be a Flop Business. In a business, if there will be no Sales from the value, then it will be called as Nonprofit.
In a business, if made promises will not be fulfilled then it will be called a Scam. And finally, if the business doesn’t benefit and does not generate money then that business for sure will not work.
So now, we will understand these 5 frameworks in more detail. So that we can take a proper decision and can run a profitable business. Whether it will be our own business or other’s business. So, let’s start from the first point.
1) Value Creation:
To be good in this part, we always need to ask a question to ourselves. Do Our Products or services give or creating value to others or in other’s life?
Because in any business, to make it successful. The only simple formula is which explains to us. The more you create value to your product and services for others the more others will pay you for that, and the more your business will become successful.
For example: Just by Opening a juice shop you can’t become or like earn like a bill gates. Because through juice shop you can create value only for some thousands of people, by quenching their thirst.
But on the other side, Bill Gates has created such a product and a company. Because of which in every house use of computers, has become possible, and every normal person can use it.
Earlier it was not possible, computer usage was possible only for big companies and huge industries. But Bill gate Efforts has made it possible and created value for millions of people. And making people’s life easy and simple.
Hence his company was a huge success. So in short the more you create value to your product or services the more your business will become successful.
2) Marketing:
The estimation has been made, that companies invest more than 15 billion dollars for marketing. You only think, how important marketing is for any business, for which companies invest so much, every year.
Peter Thiel who has created a PayPal, said in his Zero to One book, That Selling Average Product with Great Marketing is possible but its Opposite Isn’t possible and the Reason is very obvious, no matter how good or great product you create.
If you hide it and keep it at your home, don’t show to anyone, then how people or others will come to know about it. And if people don’t know about it, how will they buy it?
Hence bring your product in front of others. Doing marketing about it is very important. And one more important thing, Always remember while marketing.
Always keep your Target Audience in mind, Do as per Your Target Audience. Because No matter How Hygienic Person or family is, if they don’t have any kid in their home, they will not buy your great Diaper Product.
3) Sales:
After Marketing, the part which comes is Sales. In this Part we must Remember, People will not buy from us until and unless they don’t have trust and believe in us.
For example: If you are Roaming to an Unknown Poor Country and you are Hungry and searching for a food shop. Suddenly you find 2 places where you can eat.
In one shop there is something written in a different language, and on the other, you see Mc Donald has been written. So you definitely, just like most of the people, you will go to Mc Donald.
Because you will have a Believe and Trust on Mc Donald, That you will get good food and it will be safe to go there and no one will charge you extra.
When the Truth can be Probably Opposite, Maybe that unknown place Provides healthy and safe food whereas Mc Donald Provides Unhealthy food.
But This Thing doesn’t affect anyone not even now anyone is Bother about it. Hence if you want people to give you their hard-earned money happily so generate trust and believe in them.
4) Value Delivery:
Now after the sale, the part which comes is Value Delivery, This part explains to us, that we should provide Output more than our customer’s Expectation. Or at least as per their expectation not less than that.
For example: Think, if you order something through Amazon and it says you that, it will take 6 days to reach you, But if you get your package within 2 days or gets delivered to you before 2 days.
Then this thing will be more than your Expectation, which makes you feel great. And this thing will be known as Value Delivery which should be there in every Business.
So that customers will be satisfied and happy, and also customer should come to you again. And should also recommend your product to others.
5) Finance:
After value Delivery, the thing you should and must keep in mind is the last part, Your Finance. Whether you are generating more income than your expenses in your business, Even if you follow all 4 parts properly.
Still, if you do not generate income, then you have to shut down your business even if you don’t want to. And to be good in finance, the author suggests you do Two Things.
1) To reduce your expense in some of the Parts amongst the 4.
2) Create a product having a greater value for which you can charge a lot from customers, and even they happily pay for it.
Now while summarizing these 5 parts, the author made another business Definition. Which is amazing, very interesting and awesome. The author says, in a rough Definition, Business is known as…
1) Which creates a valuable product or services.
2) Which is needed by people, and need is so much that.
3) They are ready to pay for it happily.
4) Their need and Expectations get Satisfied and which makes them happy and they feel good.
5) Doing all this you and your company generates income and profit, Through which you are able to run and continue your business successfully.
The author asks us to keep all these things in mind, The Author even says that yes there are many concepts and many more things you can learn, but this Framework is common for Every Business.
And if you keep this Framework in mind and follow it Properly, Then any business will be able to reach the height. This framework will not help you to find all the Answers which will arise while doing business.
But yes this Framework will help you to ask a proper question in a proper way, which will eventually lead to an answer.
The knowledge which I have shared today is from the book, THE PERSONAL MBA. If you have an interest in business, do read this book and you can buy from the link below.
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