How to Make a Small Business Successful

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when I see
the Entrepreneurs

when I came to the SME
I always feel excited
because when I joined
the SME conference

I see from the eyes
the dreams
the passions
the hopes

when I joined
the fortune 500 conference
among of seriously

I see the number
I see the revenue
I see the KPI’s
I see the bloody competition

but among of the SME
you see
I have a dream
I want do something

and that happens
all the time
and that make me excited
all the time

and today
I think last 2 years
everybody say

wow
the economic is in troube
and we are all dead
and what we can I do?

and today
everybody seem to be happy
seem economic come back

It’s really economic come back?
I don’t think so

The money is gone to big companies
the money go to infrastructures
the money go back to the stock market

It’s seems nobody learned from that

how can the economic come back?
if the SME is not come back

how can the economic come back?
if the dream are not come back
the hopes are not come back

I saw one thing that
view days you know
two days ago

I dinner with my Singapore friends
they said singopre government
is encouraging to have more babies
because you know
people aging and not enough kids

I think the SME
we
every economy
every nations
needs incentive package
to have more small medium-sized companies
to have more hopes

it’s every big company
comes from the small business

if without hope
without this kind of
more babies
we gonna die

Why I always be excited?
I have 8 babies
in the far past 15 years

I build up 8 companies
7 of them very healthy
1 of them I sewed it

and I keep the baby
and I look at my babies
Alibaba, taobao, alipay

and now
the company that would I have

ali cloud
we just had a new baby two months ago

I always be excited
because you see the hope

you know
this baby is gonna change to me
this baby is gonna to change the world
can change to the customers

and that’s the thing
that always be excited

if you want be happy
have more babies

if you are the government
once the economy to be good
have more SMEs

these are the dreams
these are the hopes
these are the future

so this is
what I always
want I want a say
but enough…

we’ve been crying
say please give us support

but all the SMEs
ask court serve
one question?

we are not crying babies
we believe we’re tomorrow’s google
We believe we’re tomorrow ebay, youtube
we believe we’re tomorrow’s ups

if we believe we are
we can be

if you don’t believe
you never be

we heard a lot of government
say
I give you
and let me know
what can I do?

let me know
what we can helped the SME?

we heard a lot of banks
say
well
we being
your know
giving loans
to a lot of SMEs

I heard some banks
say wow
one of
the bank president
said
well
we give like 20,000,000
you know 200,000,000,000
or a million dolloar to the SMEs

I said what’s the size
of the loan you give?
$ 20,000,000

how can say the 20,000,000?
as the research I got
form Alibaba group
Alibaba status

87%
of the SMEs
what they need
is
the found
is below USD 60,000

but they are giving loans
to $ 20,000,000
to some big company

they are not SME
they are not the hopes

but
I think
all the SME say
let, nobody can help you

my 8 companies
I would say
nobody help us
only we can help ourserves

don’t rely on the government
don’t rely on the bank
forget about that

rely your friends
rely on relatives
rely on the small dreams
and always keep that thing in tied.

because
I think tried very hard
to get loans from banks
always trouble

when the past 10 years
I even do not borrow 1 cent
from banks
my kids grow up

I don’t know why?
and the bank show see
because we don’t have enough
information from the SMEs

tell me!
any fortune 500?
any big bank?
CEO’s president?
go to the SME summit? No
they go to SEO summit
right?

How could you get information?
if you do not go there
listen to them
talk to them
share experience with them

to see
what they need is
only USD 50,000
instead of $ 20,000,000

how can you get enough information?

so
I think
well
Tenda
we discuss yesterday

say
banks are banks
they always
have to control the risk
right

so
governement
bank
let’s think
about something new

new financial structure
that can really help those
millions of hopes small companies
that need USD 50,000

what is the right structure?
what is the right organization?
to support them
that’s the thing we should think about

so the other thing
I wanna share with you here
is always I believe
the small is beautiful

and this financial crisis
and give a lot of a disaster
to big companies

this war in to 21st the century
I think in last 2 century
it’s biggest is better

you have
a big
you know
Factory
big amount
and you know everything is big is good

this century
in the 21st century
I always believe
small is beautiful

because
it’s not how fast you’re machines is?
It’s not how many equipment you have?

It is how quickly
you can change yourself
to meet the market

because
the information time
internet
technology
make it difference

so
the world IT
in the last centuries
is designed
for manufacture

and this century
IT
is designed
for
making
to help
the consumers

So
I think
this is a disaster
for big companies

Since disaster
for big companies

but it is a great opportinity
for small business

for this financial crisis
we see a lot of big companies
where never though
they would die

AIG
it’s list
like Empire
how could that happened?
right?

All the G
and you know
the big car companies

which we respect
we always want to be there

but today they all died

and let look at the SMEs
we still feel painful

but we are happy in our heart
because we still survive

and we heard so many stories
about big companies giving trouble

and I see
the society
the government
paid to much attention
to this big trouble makers
They are the trouble makers
and we give them enough support
let them die
it’s the time for them to die
because they make trouble

every big company they have
difference plot disaster
difference problems

but all the SMEs
have the same problem
they need understanding
the support

this world is not fair
I KNOW

so that why
I want encouraging
everyone all the SME here

I am an SME
I have 8 kids
I am still as an SME

I still believe I’m a small

because when I am small
I know I can be big

and I hate to be big
Unfortunatelly

when I was a small company
only have 10-20 peoples
I feel so excited

wow I can call every employer’s name
and I know everything I want to change
I can changing within couple of minute
now… oh terrible

when I am in 20 years old

my friend said
your company
is not big enough
if you’ve a big
you are like a big boss
you are easy
right?
you can control your time

no…
my times is not a control by myself
my times is controlled by
all the meeting
a secreteries
a KPI
a shareholders
and all the things

It’s much tougher
than when you are a small

So I always believe
the first day love
is very beautiful

believe the fisrt day love
believe when you’re small

at least
you can have time
to go out to go to cinema
with your wife
and the kids
and enjoy
wonderful view

But when you’re big
you always go to board meetings

and also I wanna a say that the
I give you some today

I come here people say
Jack, you did not prepare
why you don’t have ppt?
I never prepare ppt

you know
I’m not a good at technology
I was trained
to be a high school teacher

and
the only thing
I can know about
the computer

funny things
I’m a running
the one of the biggest
the e-commerce companies
in china and leaving the world
but I know nothing about computer

the only thing I can know
about computer
a send, receive, email and browse
that’s it

because
I always a technology for people
people not working for technology

but
today
I come here as enterpreneur

I am prepare every day
I am not prepare for the ppt
because every time I use ppt
sometime wrong
I can’t use it

so
I come here to tell you
my own experience

I want share with you
as 8 kids father
what I did
when I have trouble

when I have a trouble
I always remind me
once
three things

Focus on your Customer
Serve your employees
and learn from the competitors
these are the P issue
that I learned

focus to the customer
everyboday today talking about
shareholder number one
I hate that

I think it’s always customer number one
It’s customer give you the money
It’s customer gives you the innovation
It’s customer that make you happy

because
year 1999 and year 2000
when internet bubble burst

we can’t get any money
we don’t have reveneus
we have nothing
but everyday
what I encourage to meet go on
with letter of things and emails
from my customes

say
Jack
Alibaba
keep on
because you helped us
something will help you

that’s the dream I had

So
today
we believe shareholder number one
you only think about making numbers
you only think about reveneus

you only think about
how can make your stock market go up?

and
I let you know
no shareholders can be trusted

I tell you the truth

well
our shares stock price
the over 2 years ago
we’re listed in a HKD 13.5
before that listing day
a lot of shareholders comes say
Jack, we long-term shareholder
please give us more shares
we will keep it

when the financial crisis time came
and the day when IPO 13.5 went up to $40
without doing anything good
without did 24 hours

and then financial crisis came
$40 to $3 without doing anything bad
they all gone

Most the shareholder
the share trader

how can you trust on them?

So
rely your customer
because the
customers stay with you
customers grow up with you
customers give the money
give the hope
give you the support

So
focus on customers

and second is
rely and serve your employer
it’s your employees
it’s your team
that make the difference
that the employees
that make all the dream realized

if we say

well
you know
we have
so many
a problem

and say
you know
big companies
have
a problem
in getting
the
innovation

how to make things happen?

well
because you do not listen
to the employers

They focus too much on the shareholder
the shareholders they give you
this idea, that idea
when you really do that idea
they are gone

and they change all the time
but your employees stay with you

I remember the tough days

what
was
so difficult
years
2002
2001

there’s only
one group of people
that stay with me

that’s
my colleagues

and people say Jack
you don’t have to pay me for 2 years
I will still stay in the company
because you respect us
because the customers love us

and I tell you one funny thing

every
you only way you believe
your employees is talents
they are talented to the people

if you don’t believe them
they will never be

My mistake I made
when I was year 2000
we raised the USD 5,000,000

and that’s USD 5,000,000
when we have money
we start to make mistake

I try to hire
as many talents as possible
those talents are MBA
those talents are vice precident
of multinational company
because I beleive if you MBA
it must be good, right?

but when I hire this guys
oh my God
It’s terrible

these guy came tell you strategy
I only have $ 5,000,000
I remember one of my vice president marketing
said
Jack, this is budget
for the next 2 years marketing

I say what is that?
USD 12,000,000
as I only have 5,000,000

as I never done
any plan below 10,000,000

When something wrong
it’s always your fault

because you never lose
so

try to find the right people
not the best to the people
all employees

try to find

so
if you try
to hire great people
in your own company

which your company
is not good enough
at that time

just like prop boing 7

if you want put a boing 7.7
in to prop tractor

when that goes
proptractor
nevel fly
in to pieces

so
my suggestion is that
look at your employees
develop to them

Only when they are developed
your company will be developed

the day when I a hill
we create a moment
a thousand millionaires
at least in the company

are all the guys setting in the room
we had a chat I say
ask to me!

now tell to me one thing!

why you are so successfull?
why we are so successfull?
when we are 20’s
we become millionaire
what happen?

are we?
we are very hardworking people?
I think they are much more
hardworking people outside

Do you think we are smart enough?
Ooh, at least I am not smart
I am take 3 years
3 times to go to university
I failed all the times

and I don’t think I’m smart
I don’t think you are smart
and at that time in years 2000
it was so difficult to for alibaba
to hire people

if they are not very that much disabled
we hire them
if they can walk we hire them

because nobody believe the internet
nobody believe ecommerce
will working in china
nobody believe
that
you know
internet can happen

but these guys
because they have no jobs
so she want come here
so they joint the company

and then
those MBAs
those people with great
you know
beckround
they
have
a lot of
headhunting company

they move out
they start their own business

now
today
they are all failed

those guys
nobody headhunting them

those guys
never set up
a have a dreams
to build up to have own companies
stay in the company
after 5 years
we succeed

why?
We keep our dream
We believe it
No matter how big your dream is?
Make small tiny step a head
and grow with them
grow with the company

so
my mistake year 2001
I told to my 18 founders

I said
you guys can only be team manager

all the VP’s
I will hire from outside

now
10 years pass
all the wonderful people
I hire outside
100% gone

and those
which I think
how could you be successful?

they all
become VPs and directors
they are all powerfull
because they believe they can

so
I want to tell everybody here
we are small
but care your employees
these are the people
they have famous
they have dreams

they come here not only for the jobs
they come here with a dreams
to get share with you

and the 3rd thing is
learn from competitors
don’t hate the competitors
big companies hate competitors
I love my competitors
without competitors
we never growth
that much best

year 2003
when we start
e
you know taobao
is a situs auction model
ebay my competitor at that time
is $ 80,000,000,000 market cap

we
you know
small tiny
how start to compete?
it’s a lot of fun
to compete with big guys

you know
if I start to have
a boxing with
Mike Tyson

I am honored
you know

if you have
a chance to compete with somebody
it’s a great competitor
you learn

we learn from our competitors
we respect them
everything they move
you growth

and other thing
I want share with you is that
competitor is
the best laboratory for you
because competitor state you

any innovated ideas they come?
you learn that

don’t copy them
learn from them

so
I love my competitors
every time when I look at them
I wish in the mind

but I
in china
people say
Jack, you are so crazy
because
4 years ago
I said
when I look my telescope
I never seen my competitors

and people say
how could be that?
how how know?

and I see now I am looking for
examples
modul

why should I am looking for competitor?
competitor are everywhere

and
when you compete
having fun
the most interesting part
of the business is competition

to make your competitors angry
to make your competitors jumping around
thats the skill you should have

not make yourself jumping around and angry
right?

business is such a great fun

when you compete
when I compete
if I got angry
if I am jumping around
I know something wrong

because this is
a wrong strategy to compete

when you compete
you know
not not not
purpose let make
competitor unhappy
if they are unhappy
if they jumping around
if they start use moneny
to kill anything
you start a win
because they start lose money

when competitor start using money
to compete with you
they start a lose

Business is about wisdom
Business is about hope
Business is about courage

So
these are all those sklills
and I
nobody confidence

I learn to use my right hand
to convert my left to hand
when I am in a trouble

You always tell yoursef
OK
I am still surviving
I am still growing
Everythings is good
At least
I am still surviving
right?

so when you are big
you start to worry
about losing something

when small
you start to grow

so
I always beleive
small keep the hope

so
this are these things
I want share with you
and the last and most important
the things I want I say is
never ever give up your dreams

I almost
I think
we cannot eat food for 7 days
that you would die, right?
5 to 7 days

if you do not drink for 3 days
you die

if you do not breathe for 3 minutes
you die

but
if you lose hope, dream for 1 minute
you die

so I want a tell you
that I had problems
in the past 10 years

these days when I walked in china

when loook at the airport
a lot of books about me
about the alibaba

I feel
I few very nervous

because
this is another books
interview to me
this is the book
that all right
we are not that good
we are not that bad

but today
when you something
you know successful
they start to write
a good things about it

we made so many mistakes

the only book
that I dream
to write about
is alibaba
1001 mistakes

every mistakes
I think
you count
I made

and I know
you are make it too

because when I was doing business
everybody say
wow
this is
this is
this is the mistake you are
this guys gonna make
that guys gonna make
I’m never gonna make it

I tell you are make it
and you are make it
again again again
and when you make it
again again
don’t lose confidence
make it again
you’re win

that’s
all I did
I mean
nobody’s perfect
right?

so
I
almost
lose my confidence
in year 2002
I’ve a big trouble
with my team
in the USA

I learn from
a great consultant
a guy joined a company

Jack
alibaba doing international trade
International trade needs english

which country
is the best english you have?
if believable
USA, right?

now…
internet needs great technology
which country have the best technology?
we say hmmm USA
right?

and
where?
silicon valley

so we move our alibaba.com
to silicon valley
and when I arrived silicon valley
we I
we suddently realise something wrong

we hire the people
from miami
from new york
and from all the world
they all came to the
our silicon valley

and after 3 months
the real the problem is that
no body silicn valley know the trade

so what’s the point
have a good technology and english
we are not english society, right?

all the small medium size
companies across the board
they know exactly
what are you talking about?

but no matter how terrible english is?
right?

said I made a mistake
and I told the people say

sorry
it’s a mistake
let’s move back

so
after 2 months
we move to back from
to china again

the funnies thing is that
everybody was happy that
because internet in the boosting

they get a lot of option share
they got a lot of cash pay
and the funny find another job is easy

and nobody won’t to the shares
a great I give them 1 cent / share
no no no share I want a cash

that you know
they don’t believe the dreams

if they believe the dreams
give them the share 1 cent

if they don’t believe
I want a cash
let them go

and I was so disappointed
a lot of people we hire

they can not want
they want a cash

no matter how wonderfull
the the at that time
easy to raise money
people still want a cash

so
I say ok
let’s forget it

and I walk for a half and hour
on the beijing street

but my colleague was delay
and then
I talk myself
go to bed sleep
tomorrow again

now
we started

today
things change

so
I want a tell you
never ever give up your dreams

and today
I encourage myself and our team
and remind us one things that always
I want share with you
finish my speech

that
today is very difficult
tomorrow is much more difficult
but the day after tomorrow is very beautiful
most people die tomorrow evening

you never be able to see
the day of tomorrow sunshine
if you give up the hope
you have
you’re a nope
you’re not see it

if you give up
with the employees
you never see it

if you give up
your customers
you’re died

but if you give up
with shareholder
you will get
better one

thank you

Jack Ma – How to Make a Small Business Successful