Flywheel Effect (Part Two)

In my last post I discussed the “flywheel effect”; how Howard Schultz, CEO of Starbucks, places his new products in Starbucks stores to build brand recognition before placing it in supermarkets. The question then, from a mental seed perspective, is, if this is working, why is it working?

I’ve discussed before how I think what is now accepted as best business practice is a result of using seed management that works: for example, we now know that you have to treat your employees well (if you don’t, you’ll see them working for your competitors). This works well with seed management; treating your employees as a way to plant good seeds is good karmic management.

Similarly, if we want the flywheel effect to work for us, this is a how, not a why. If you have a headache and take an aspirin, and your headache goes away, then the aspirin is how your headache went away. But a lot of people take aspirin and their headache does not go away, because the aspirin is not the cause of removing a headache. Taking care of other peoples’ health is the real cause for the aspirin to work.

Similarly, the flywheel effect will work for some companies or some products, but not for all of them. Why? Because it’s a how, not a why.

So why, meaning from a mental seed perspective, would the flywheel effect work?

We have a saying in English, “Practice makes perfect.” All such slogans are false in some respect, but also contain a kernel of truth (or they wouldn’t survive). How does practice make perfect?

From a seed perspective, the first time you try something, if you fail, what is going on? You’re purifying your old bad seeds. And if you purify enough of your old bad seeds, then your new good seeds will have a chance to ripen.

In other words, I think what might be happening for Starbucks is as they sell a new product, if they are trying to serve their customers, they are purifying old bad seeds and planting new good seeds. Then, when they take their product to the supermarket, they have already planted the seeds they need to see success.

We have a concept called 10%; if you want to plant seeds to be wealthy, take 10% of the money you have coming in and save it in an account to give away later. This is actually better than just giving the money away, because every time you think about giving the money away you plant more seeds. So if you save money for six months before giving it away, you plant seeds for six months thinking about what you’re going to do with the money.

In the same way, if you sell a product that your customers enjoy, you’re building up the seeds you need to see yourself be successful. Especially if you have to motivation to make sure the product is something that your customers want and enjoy.

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