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DEVELOPING NEW BUSINESS IDEAS230

subscription with unlimited use for Internet Securities, Inc. in Poland
rather than a retrospective payment by usage, in order to generate
regular up-front cash-flow.

Property developers also exemplify this process – they do not wait until
the two-dimensional architects’ drawings of forthcoming developments
are converted into bricks and mortar before they start their sales
campaigns. Instead, they create online virtual tours of the project as
early as possible to stimulate interest and then create a show-house
immediately that they arrive on site in order to pre-sell the properties
and generate cash-flow.

keep things simple Legend has it that Albert Einstein was once

asked why he also used hand soap for shaving in preference to shaving
foam. He is supposed to have replied: ‘Two soaps? That is too
complicated!’ Apocryphal as the story may be, it does illustrate a value
acknowledged as central to Einstein’s creativity – namely, the
importance of simplification.

In terms of business start-up, the need to keep things simple is entirely
consistent with asset parsimony. Jeff Bezos launched Amazon.com with
a highly functional website, where basic functionality and rapid loading
preceded style and editorial content. Getting started simply,
economically and quickly was what mattered – refinements could be
introduced over time.

the need to keep things simple is entirely
consistent with asset parsimony

The task facing Boo.com was a challenge of a different order. The
technical solution required from the outset to overcome customers’
inability to actually feel the clothes on offer and to physically try them
on was so complex that it stretched managers’ ability beyond breaking
point. When Boo.com went into liquidation after just six months of
active trading, it had spent over $128 million.

limit your areas of uniqueness Keeping things simple allows you
to avoid unnecessary risk and exposure. Rock-climbers, for example,
are urged to maintain three points of contact with the rock face at all
times – while one hand may be reaching for a new and previously
undiscovered hand-hold, the other hand plus both feet should be firmly