10 lessons entrepreneurs should learn from Jack Ma, Alibaba founder

Everyone loves a grass to grace story and none is more inspiring than Jack Ma, the Chinese billionaire who started using a computer in his 30s and had built a tech empire in his early fifties.

Unlike other western billionaires who were exposed to some form of computer training in their youth and had all the learning facilities to help them reach their goals, Jack Ma had nothing.

The first time you see Jack Ma, he doesn’t strike you as an attractive man but his desire to learn and charismatic leadership that inspires others to reach their best has made him one of the most loved billionaires. He didn’t do a single line of coding when building his e-commerce website Alibaba, failed his middle school exam thrice and learnt how to speak English from visiting tourist when he worked part-time as a tourist guide.

What lessons can CEOs and entrepreneurs learn from Jack Ma?

Hire women

The secret sauce for success is to hire more women because women care more than men. According to Ma, people associated success with muscle in the 20^th century but in the 21^st-century wisdom is key and that’s where women will reign supreme.

Think of money as a responsibility not a source of happiness

When he graduated college, Ma earned $20 a month. With more money comes more responsibility. $10 million dollars is more responsibility and headache. Having more money means that people have placed trust on you to spend money better than others.

Put the vision first

The best strategy when you’re starting out is to focus on the customer experience. Find new ways to build trust and loyalty, which is the foundation of any successful brand. The best brands are built on developing solutions that change the world or solve problems for people. Jack Ma started Alibaba because he wanted to give Chinese people a free version of global e-commerce giants eBay. Money should be an afterthought, not the end goal.

Hire people who are better than you

You become complacent when you’re surrounded by people who don’t challenge you. A good leader should hire people with superior technical skills while retaining more foresight than the employee. A true leader inspires and motivates his staff to keep pushing when its hard and is able to unify all efforts towards a common goal.

Face your fears

Everyone has fears but it’s how you face them that shows character. When Ma launched Taobao in 2003, the goal was to slow down the progress of American companies taking over the Chinese marketplace, especially eBay. His service was free to use while EachNet, Ebay’s consumer-to-consumer platform charged per transaction. They didn’t make money initially but became more popular than EachNet in China. You might have to lose money to establish your brand as the top business in your industry.

Stay prepared for change

The only constant in the business world is change and companies that fail to move with the tide get left behind. Take old mobile phone companies like Sony Erickson and Nokia for example, they were one of the top selling phones in the early days but were overthrown by newer brands like Apple and Samsung who create new products that feature updates consumers love.

If any change is coming, entrepreneurs must prepare early. Changing technologies such as machine learning and artificial intelligence are new changes that improve lives.

Rejections are a stepping stone to success

Jack Ma knows a thing or two about rejections. He lost a job he applied for in a four-star hotel to his more attractive cousin, who still works at the same hotel while Ma built an empire. When you apply for a job and you don’t get it, take it on the chin and move on. Its’ all part of character building. Thirty venture capitalists rejected Alibaba before Softbank came to their aid. Each rejection built his courage as an Entrepreneur.

Exploit your competition

When eBay entered the Chinese market in the early 2000s they were Alibaba’s biggest rival but Jack Ma was able to use their weakness to his advantage which forced eBay to close operations in China. The technique was simple, offer services for free while eBay charged a fee and spent massively on aggressive marketing campaigns.

Use the power of your personality

Ma used his personality to entice investors. While others focused on business plans, Ma talked about his vision and story. You humanize your brand as more than just a business entity which opens more doors.

Paranoia drives continuity

Brands who relax or get comfortable in their success always fail. When Netscape existed, people thought they were so good it would never disappear. Don’t believe your brand will be the best all the time. Paranoia keeps your competitive edge burning.

Never be afraid to invest in your dream

After his initial startups failed, Ma didn’t give up. He convinced his friends to invest in his online marketplace where exporters and importers can trade directly with each other. By 1999 the company was attracting global interest including funding from Softbank, Goldman Sachs and later on a billion-dollar investment from Yahoo.

Go beyond and above

Successful entrepreneurs are always willing to work beyond the normal 9-5 hours. People with such a spirit won’t go far. The willingness to work beyond a routine schedule shows a desire to achieve success in business.

Conclusion

Jack Ma didn’t have any connections or rich relatives to help him. He invested in youth, encouraged hard working staff and was excellent at driving performance. According to Ma, the success of Alibaba lies in the dream birthed in small apartment, supported by friends and driven by the desire to change the world.