As it turns out, Archimedes can teach us a lot. He was Smart with a capital S.
“Give me a place to stand on, and I
will move the Earth” Archimedes
Or – in other words, “Give me a lever long enough
and a fulcrum on which to
place it, and I shall move the world."
“A lever (/ˈlɛvər/ or UK
/ˈliːvər/) is a machine
consisting of a beam or rigid rod pivoted at a fixed hinge, or fulcrum.
It is one of the six simple machines identified by Renaissance
scientists. The word comes from the French
lever, "to raise", cf. a levant.
A lever amplifies an input force to provide a greater output force, which is
said to provide leverage. The ratio of the output force to the input
force is the ideal mechanical advantage of the lever”. - Wikipedia
How does this relate to start-ups? Start-ups are small Davids who are out to
conquer giant Goliaths. In the bible,
David defeated Goliath with a lever. A
catapult with a stone is a weapon which turns a near useless stone into a giant
killing weapon.
In the business world, there are plenty of levers to
use. Identifying them and using them to
your advantage is an essential part of building a small business that can take
on Giants.
An example. Microsoft came to dominate PC operating systems
through a smart distribution deal with IBM.
IBM at the time were a massive PC manufacturer, Microsoft were tiny. Bill Gates managed to get his DOS operating
system into all IBM machines yet retain the rights to use them elsewhere. By leveraging the massive scale of IBM, MS
DOS became the main PC operating system of its time.
These days, a small online trader can leverage the
marketplaces of eBay and Amazon to gain access to consumers. A gaming company can leverage the user base
of Facebook, a SaaS business can give away free products in app stores to acquire
customers that they can up sell to paying subscribers. A travel insurance provider can partner with
an online travel agent to gain access to relevant consumers.
Thinking of the world in terms of how to leverage the
strengths of others to your advantage is a very useful perspective when you
have very little in the way of money or resources.
Got any other examples?
Please do share your thoughts…
