So what does cause SUCCESS?

One of my favorite...if not the favorite business author is Richard Koch, who wrote the powerful book, "The 80/20 Principle" and in 2001 came out with the equally compelling "The Natural Laws of Business". I enjoy Mr. Koch's viewpoints because quite frankly I agree with them. Not only does the things he says make sense...but you can see them in motion as you would go through (as Gordon would say) your 'Parade of Life'.

He is one example of Mr. Koch's thinking:

"It turns out that most things in the world, and certainly some of the most important--including the weather, the brain, cities, economics, history, and people--are 'nonlinear systems,' which means that they don't behave in the straightforward way assumed by Issac Newton and all the scientists up to the end of the nineteenth century."

"Nonlinear systems don't have simple causes and effects. They don't behave like mechanical objects. Everything is interrelated, equilibrium is elusive and fleeting, small and even trivial causes can have massive effects, control is impossible, prediction is hazardous, simple systems can demonstrate incredibly complex behavior and complex systems can give rise to very simple behavior. In this weird and wonky world, intelligence, common sense, and good intentions are no guarantee of good results. Instead, unwelcome and unintended consequences are endemic."

This is certainly one of the most powerful concepts I've ever read...and since I read it last November, have thought about a great deal. And the more I think about it and observe the concept in action the more solidly I agree. It didn't alter my original thinking (before I read the book), just cemented it into place even further.

One of the things I do is help businesses get started as a paid consultant for the County in which I reside, plus I help existing businesses grow, usually through better marketing. Quite often I talk to people that want to start a business but want to have 'control' of all the variables going in...I say (reinforced by Mr. Koch), that this is impossible. If you have a concept that makes sense to you, then go with it. As said before in ad nauseam that action, any action, is good action. Why? because the 'non-linear' quirks of the world may (and quite often do) open up worlds of opportunity. You look at any successful business out there and I guarantee they were helped along by some fickle happenstance that occurred (and they were able to recognize it) ONLY because they were at a point in their business lives that they could read, accept and then act upon it.

Look at Ben Suarez...his mail order was a flop until Gary Halbert gave him a tip on selling Astrology related products.

One of my mentor's, Johnny Berguson, started out selling audio programs (self published) on horse training. This opened up the door to expand to a $50,000,000 per year business that sells mostly blank audio tapes and high-speed duplicators to the religious market. But this would not have happened without the foray into the audio publishing business first. One door led to another.

John Rigas of the recently pummeled Adelphia Cable, started out with buying a movie theater in Coudersport, PA back in the early 50's. This, through a number of twists and turns, led to the purchase of his first cable company.

Microsoft certainly could not have business planned the need of IBM for an operating system (later to become MSDOS) AND the knowledge of someone (I believe also in the Seattle area) that had an operating system in place that Microsoft could purchase for $50,000 and then tweak and sell to IBM.

Stuff like that just can not be planned for.

Why do we even try? But time after time we hold off doing everything until the 'time is right' and (we think) we control ALL the VARIABLES, which usually means 'we are guaranteed of success'. That might happen in a linear world but not where I live. There are too many things lurking behind corners, some good, some bad, that I can't see and neither can you. But the only remedy is action. Any action.

Do you agree with what Richard Koch says?

Take care,

Mike Winicki

is the name of a TV show hosted by Terry Gilliam (from Monty Python). The show would follow the connections between inventions.

Consider silk...

The firt tea bag was made from silk in 1908. It's inventor, Thomas Sullivan, used a silk bag to ship tea sample to his customers because it was cheaper than sending a tin. Of course, they didn't know what to do with it so just put the whole thing in boiling water.

In an effort to reproduce silk - because making it the usual way is too time consuming and labour intensive - Nylon was invented. So too was plastic (can you imagine a world without plastic now?)

Nylon gives us things such as: Dental floss, stockings, tents, more affordable and thus widespread parachutes, flags, etc.

Plastic leads to: Plastic bags, TV cases, computer cases, camera cases, remote control cases, audio tape cases, video tapes, CDs, telephone handsets, boxes to hold dental floss, toothbrushes, disposable razors, aerosol buttons and caps, the little hard bit on the end of your shoelaces, credit cards, frisbee, etc.

Without video tapes there would be no Blockbuster.

Can you imagine your computer case and monitor case made from metal? Or wood?

It's like our whole world is one big fluke that just happened.

Michael Ross.

> It's like our whole world is one big fluke
> that just happened.

> Michael Ross.

The story goes that an adhesive engineer "failed" on a project, and inadvertently invented the adhesive now used on Post-It notes...

By risking failure, and failing, he created a million dollar product

...something to think about...

JDB




Easy as 1,2,3...

Hi Mike,

Awesome post. :)

I'm a big fan of Richard Koch too.... As well as "The 80/20 Principle," I also have his book "Selecting Shares That Perform: 10 Ways to Beat the Index" (on stock market investing). I also recently got his book, "The Financial Times Guide to Strategy" (about business strategy).

I agree fully with what you and Richard Koch say about the world being "nonlinear systems".... The essence of a nonlinear system is that, what you get out is NOT always proportional to what you put in.

So, you can put a little effort in your business, and sometimes get out a LOT of profit. Or, unfortunately, sometimes the other side is true too, you can put in a lot of effort, and only get out a little....

But, what you said is really true - just being "in the game" opens up more and more opportunities. So, it's important to get started!

I agree with you fully.... "Getting started" may be the hardest part, but it's also the most important part.... Since once you get started, as you get better known, you'll find you have more and more opportunities opening up to you!

One thing leads to another, and another.... But if you never get started, you can't get the chain from happening!

Thanks Mike.... Great post. :)

- Dien Rice

> One of my favorite...if not the favorite
> business author is Richard Koch, who wrote
> the powerful book, "The 80/20
> Principle"

Yes, I picked up the book and began reading. Now leverage and efficiency and time are super important to me. The 80/20 rule is my best friend. I try to make him my business partner, but sometimes he refuses to go along.

I began reading Koch's book and really got into it. But about halfway through I started skimming. I considered the 80/20 principle and as I began to take it more seriously, I read less and less of the book.

Stupid? Maybe.

But I was only interested in what applied to me personally. The foundations Richard talked about were the most important, like simply being aware of the 80/20 principle at work. These revelations/reminders were good stuff, but a lot of the corporate stuff I nearly fell asleep while even skimming. That's just not where my personal interests lie I suppose (even though if I was smart I'd see it applied to small biz too)

I looked into the corner of my bedroom and saw a box full of books that were beckoning. I sped through the rest of Richard's book. I owe him for etching the 80/20 rule in my head though.

> Why do we even try? But time after time we
> hold off doing everything until the 'time is
> right' and (we think) we control ALL the
> VARIABLES, which usually means 'we are
> guaranteed of success'. That might happen in
> a linear world but not where I live. There
> are too many things lurking behind corners,
> some good, some bad, that I can't see and
> neither can you. But the only remedy is
> action. Any action.

Great post, BTW. And yes, I completely agree (although I found parts of the book regarding personal time offensive and selfish - yes, even though I like good Ayn Rand stuff, I think it was just the wording) with this part. Every time I start a project I want it to be perfect. And unless I can overcome this wish to control all the variables, the project is doomed.

I really like how you and he focused on just taking action. Doing something. Anything :)

I should stick post it notes that say that all over my house.

Success,

Erik Lukas