avatarDerek Hutson

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Thinking Long Term is Incredibly Valuable

Wisdom from Bill Gates

Photo by micheile henderson on Unsplash

As owner of one of the world’s largest companies by day, and incredible philanthropist by night, Bill Gates is one of the most incredible stories of our generation.

Being in a very public spotlight for decades is a wild experience. It is next to impossible to avoid scrutiny for every mistake or questionable decision you will make. People start to view you as less of a human and more of a TV character.

Talking about what someone did yesterday or last year is easy to do because we haven’t forgotten about it yet. And as people go through life, they will change and grow. But sometimes, you have to look back further to find the most valuable lessons.

As we know it, Microsoft is unquestionably one of the largest and most influential companies in existence. But it wasn’t always this way, or even close. One business deal launched Microsoft from the ground into the stratosphere.

People forget about the one with IBM because it happened all the way back in 1980 when Gates was only 25 years old. Even the man himself says that without a doubt it was the most important deal of his life.

I dug into this story in a little more detail in a book I read recently, and there’s a few lessons in there we can all learn from.

Immediately establish yourself as an expert

When he walked into the board room of IBM, Gates was only 25 and he looked every part of it. He had to show these executives he wasn’t some kid selling BS software.

He would talk fast and immediately dive into fine details of how his software functioned. He recited every component of every processor and every line of code. When asked about deadlines, he overpromised on when he could actually deliver to appear more efficient and reliable.

It is important to note that you should not fake being an expert. Becoming one requires many hours of hammering away at your craft and products. Establishing yourself as one only requires being a confident speaker.

Do the work, and be confident presenting yourself.

Understand what is needed by others

Gates knew going into this deal that one of IBM’s biggest issues was velocity. In such a large corporation, there are many layers and decision makers that must get on board to progress. This make it very hard to innovate.

By overpromising, he made it clear that he could deliver quality products in no time. Ultimately, he ended up providing the software IBM used in its first mass-produced PC, including its operating system.

When you can bring both a solid product and solve a core problem, you will put yourself in a superb position.

Establish a distinguished reputation

From day 1 Gates knew that he needed the biggest tech companies in the world to trust and want his software. And at the time, IBM was number 1.

So the way he structured his deal with IBM was brilliant. He understood that since they were the largest he could milk a ton of cash out of them. But the real fruit would come from bring the operating system in IBM’s machines.

This allowed him to strategically position himself as a reputable provider for software. So when other companies started coming into the PC market, they all wanted Windows.

By making a fair deal with IBM, he had a renowned customer to bolster his reputation. This allowed him to dominate the PC software market for decades.

The takeaway is clear: Choose long-term strategic positioning over short-term gains.

We can all become experts

Ready or not, things are changing quickly in the world today.

There is going to be a shift in society’s behaviors, interests, and problems. With this comes more opportunity to become great and serve others. A byproduct of serving others is the “success” you are looking for.

It takes work to be great, and by strategically positioning yourself for long-term gain you are setting yourself up for real success. The kind that comes with better habits and values that allow you to keep it.

If you don’t want to strive to be great, that’s totally fine. Just do whatever makes you happy.

If you want to leave the world a better place than you found it, do the following:

  • Become an expert at your craft
  • Find problems you can solve
  • Build a reputation for being able to do so

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