Kleiners' Laws
[Originally written 6/3/2020]
A few days ago, I was on a business call with a potential partner for Altrui Foundation. This man had been an industry leader for almost two decades, throughout which he has served to create impactful change for uninsured people across the nation. He was also incredibly warmhearted and provided my partners and I with much advice as we displayed our intentions to foster a deep connection between our organizations. Seeing as we are a couple of teenagers taking on the “big leagues”, his words were comforting and instructional. (That was a bit of a tangent - I really liked him though :D).
Amidst our conversation, the man mentioned Eugen Kleiner, the founder of Silicon Valley, and three quotes that he wanted us to remember as we pursued our work, both now and in the future wherever our careers take us. I was amazed that he had memorized them word for word, and after hearing them, I understood just how meaningful they were to him. I decided to do a little research.
After searching up Eugene Kleiner and learning a little about his background (he went through a lot in his early days), I came across Kleiners’ Laws. Although laws may be a stretch, these aphorisms definitely hold wisdom. Here they are:
Make sure the dog wants to eat the dog food. No matter how ground-breaking a new technology, how large a potential market, make certain customers actually want it.
Build one business at a time. Most business plans are overly ambitious. Concentrate on being successful in one endeavor first.
Risk up front, out early.
The time to take the tarts is when they're being passed.
The problem with most companies is they don't know what business they're in.
Even turkeys can fly in a high wind. In times of strong economies, even bad companies can look good.
It's easier to get a piece of an existing market than to create a new one.
It's difficult to see the picture when you're inside the frame.
After learning some of the tricks of the trade, some people think they know the trade.
Venture capitalists will stop at nothing to copy success.
Invest in people, not just products.
When the money is available, take it.
There is a time when panic is the appropriate response.
The more difficult the decision, the less it matters what you choose.
Currently, I am in the middle of reading “Manifesto For A Moral Revolution” by a pioneer in the Impact Investing industry/the renowned CEO of Acumen, Jacqueline Novogratz (more on my appreciation for her novel later, it’s definitely coming…). Throughout her book, Novogratz teaches her ideas through a combination of storytelling her own experiences and those of her Acumen Fellows. I can sense common themes from these stories, so below are a few matches/opposites that I found after a little thought (I’m currently on page 150).
1)
Story: Andrew Otieno from Jamii Bora
Law: The more difficult the decision, the less it matters what you choose.
2)
Story: Jacqueline Novogratz’ on the college fraternity fundraiser
Law: There is a time when panic is the appropriate response.
3)
Story: Jacqueline Novogratz on the swiss banker who tried to get her on the advisory board, but whose venture failed during the recession
{A Wrong} Law: When the money is available, take it.
4)
Story: All (it’s a part of the definition of Moral Imagination!)
Law: Invest in people, not just products.
5)
Story: Jaqueline Novogratz on how she started out early after her job at a finance firm, thereby taking the risk and going to Africa against the expectations of society and her family
Law: Risk up front, out early.
6)
Story: Sam Goldman and Ned Tozun from d.light
{A Wrong} Law: It's easier to get a piece of an existing market than to create a new one. Why: Sometimes, new markets have to be created because old markets rely on corruption and unethical principles to be sustainable. This is extremely hard, but through understanding the issues and relying on a consumer-focused approach for impact, it can be done slowly, but surely.
7)
Story: All (Moral Imagination requires impact to be focused from the ground up, starting with the people that need the product so as to understand the truthful wants and needs of the consumer)
Law: Make sure the dog wants to eat the dog food. No matter how ground-breaking a new technology, how large a potential market, make certain customers actually want it.
8)
Story: Novogratz’ emphasizes to always do your due diligence about a company and its founder. Base an investment on character, not just raw numbers. An example that pops in my head is her story on the person who kept two sets of books and later got arrested.
Law: Even turkeys can fly in a high wind. In times of strong economies, even bad companies can look good.