Exist to solve problems – The 200 words project

Here’s this week’s 200 word idea from Anything You Want by Derek Sivers.

At a conference in the pre-iTunes era, somebody asked Derek Sivers, founder of CDBaby.com – “What if every musician just set up their own store on their website?” CDBaby.com was then the primary place for independent musicians to sell their music.

“Well, if musicians don’t need CD Baby any more, CD Baby would shut up shop and I would just get back to making music.” – Derek replied to general astonishment.

Derek’s view was simple – a business is started to solve a problem. If the problem is solved, the business is no longer needed. Businesses are often guilty of keeping the problem around so they can continue solving it. But, these businesses die eventually – think businesses like Kodak and Blockbuster which refused to accept the onset of digital photography and the internet.

The best businesses, in fact, are adept at cannibalizing themselves. More on that in next week’s idea.

clip_image001
Source and thanks to: www.EBSketchin.com

‘Any business that is in business to sell you a cure is motivated not to focus on prevention.’ | Derek Sivers