I just saw Tony Hsieh speak/inspire/teach/etc. recently at the Perfect Business Summit in Las Vegas. He generously gave a copy of his new book, "Delivering Happiness" and I couldn't resist sharing what I read last night:
Tony noticed so many similarities between poker and business that he started making a list of the lessons he learned from playing poker that could also be applied to business. These are some serious golden nuggets!
Evaluating Market Opportunities
- Table selection is the most important decision you can make.
- It's okay to switch tables if you discover it's too hard to win at your table.
- If there are too many competitors (some irrational or inexperienced), even if you're the best it's a lot harder to win.
Marketing and Branding
- Act weak when strong, act strong when weak. Know when to bluff.
- Your "brand" is important.
- Help shape the stories that people are telling about you.
Financials
- Always be prepared for the worst possible scenario.
- The guy who wins the most hands is not the guy who makes the most money in the long run.
- The guy who never loses a hand is not the guy who makes the most money in the long run.
- Go for positive expected value, not what's least risky.
- Make sure your bankroll is large enough for the game you're playing and the risks you're taking.
- Play only with what you can afford to lose.
- Remember that it's a long-term game. You will win or lose individual hands or sessions, but it's what happens in the long term that matters.
Strategy
- Don't play games that you don't understand, even if you see lots of other people making money from them.
- Figure out the game when the stakes aren't high.
- Don't cheat. Cheaters never win in the long run.
- Stick to your principles.
- You need to adjust your style of play throughout the night as the dynamics of the game change. Be flexible.
- Be patient and think long-term.
- The players with the most stamina and focus usually win.
- Differentiate yourself. Do the opposite of what the rest of the table is doing.
- Hope is not a good plan.
- Don't let yourself go "on tilt." It's much more cost-effective to take a break, walk around, or leave the game for the night.
Continual Learning
- Educate yourself. Read books and learn from others who have done it before.
- Learn by doing. Theory is nice, but nothing replaces actual experience.
- Learn by surrounding yourself with talented players.
- Just because you win a hand doesn't mean you're good and you don't have more learning to do. You might have just gotten lucky.
- Don't be afraid to ask for advice.
Culture
- You've gotta love the game. To become really good, you need to live it and sleep it.
- Don't be cocky. Don't be flashy. There's always someone better than you.
- Be nice and make friends. It's a small community.
- Share what you've learned with others.
- Look for opportunities beyond just the game you sat down to play. You never know who you're going to meet, including new friends for life or new business contacts.
- Have fun. The game is a lot more enjoyable when you're trying to do more than just make money.
Thank you so much for sharing your wisdom with us Tony!!
"Over the past 10 years, Zappos.com, the company where I am CEO, has grown from almost no sales to over $1 billion in gross merchandise sales annually, driven primarily by repeat customers and word of mouth, while simultaneously making Fortune Magazine's annual "Best Companies to Work For" list two years in a row. My first book, "Delivering Happiness: A Path to Profits, Passion, and Purpose", will be released on June 7, 2010. Below is an excerpt that describes the lessons that I learned from playing poker and how I apply them to the business world.
For more Tony:
The American Marketing Association’s Phoenix Chapter is sponsoring the Phoenix stop of the Delivering Happiness Tour Presented by: Tony Hsieh, CEO-Zappos November 2, 2010.
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