Where there's a complaint, there's a business opportunity.
To me, complaints indicate pain points, unmet needs. People complain because they can't solve a problem. For instance, in some cities, sudden downpours catch people off guard at subway stations. They gripe about the weather, and this creates an opportunity for someone to sell umbrellas right there.
In some cities, high-speed rail stations are far from downtown. Many people don't know there's a direct metro or light rail connection, so they complain about the hassle of getting to the city. This results in a bunch of taxis waiting at the station to pick up passengers.
These are just simple examples, but the main idea is that complaints signal problems, and where there are problems, there's a market opportunity. Our job is to identify these pain points and provide solutions. If we can solve people's problems, we can make money from it.
That's the first point.
The second point: making big money through division of labor and cooperation.
In this video, the speaker discussed how a company evolves from a simple structure to a complex management system. I found this process fascinating. It made me realize why we need to design specific roles and assign different performance metrics and salaries to them, ultimately forming a comprehensive management system.
A common and straightforward company model includes three parts: operations, marketing, and support. Operations create products, marketing sells them, and support assists both.
A company's main structure revolves around these three parts, plus a fourth: management. As a company's revenue and expenses grow, they need accounting and auditing. To handle daily public relations and maintain the company's image and brand, they need a legal department.
The author proposed an interesting idea: simple problems require simple solutions, and complex problems require complex solutions. Each role creates value differently. This helped me understand how to set salaries for various positions, which is crucial for starting a business or building a team.
The main roles are experts, managers, production line workers, and salespeople. According to this value creation model, management is the most advantageous. Production line workers are paid per unit produced. The more they make, the more they earn. Increasing their salary doesn’t benefit the company since it only raises costs without extra revenue.
Salespeople fare slightly better. Their pay depends on the volume they sell and the clients they secure, which relies on their skills. Good salespeople can earn a lot, but poor ones might not make much, as not everyone has the same sales ability, which carries a risk.
Management creates the most value and benefits the most. They oversee projects and company direction, so their salary is linked to their team's sales performance. Paying managers more can be beneficial since it motivates them to lead their team effectively and expand projects, directly influencing their performance and pay.
The author concludes with a formula: earning money = industry + position + city + company + time + problem-solving ability. Ultimately, he says that choice matters more than ability. I would add that personal effort amplifies this choice. His conclusion makes sense; choosing the right city and industry sets the ceiling for your value creation. Being in a first-tier versus a second- or third-tier city, or a booming industry versus a stagnant one, drastically affects your potential earnings.
Your company, role, time investment, and the projects you handle also directly impact your performance and salary.
