JACK MA’S TIPS – HOW TO GROW A SMALL BUSINESS (Jack Ma 2017)
Adoption. Of your product today, internet. Mumbai properties. The faster university that I've ever had you can communicate, with all of the world so I, think the ideas, you've got. Fantastic. The, only thing is that as. An, entrepreneur that. Never you, know build up a good team and. Set. The, VP a big, vision but, my stones. And, you. Know go go on never give up you, might have a lot of problems, right, but, you. Can see the proper you facing, your competitor, will face it - yeah. And. You. Think you have a lot of tough days but you're compared we haven't much. So. You say that the competition, between us that accompany, this is the speed of solving, the problems for us our story is very similar like everybody else we. Found a space on the other side we found that entrepreneurs, are working in isolation everybody, was working from the hope of them a coffee shop and we. Needed to bring them to be on top because of my business experience I like, have dropped out of university secondly. Long, story we could in a poly because I needed to pay for my siblings, service. And. I had done a lot of manual. Labor before that so I start my first company I failed by my second one I failed and then, my, third company started working which, was buying domain names from Bulgaria, and shop buying, them at about. $35. And selling them at hundred and fifty dollars Intel the. Reason was business opportunity, was because people didn't have credit cards this was the only company that accepted, Western Union, so, I'd asked you want a domain name our cellular domain name, come. And get. The domain name for the twelve dollars sell it one hundred and fifty and support it for a year and then, I was lucky enough to meet Anna who is right over here and, she invested $50,000. For. An incubation hub, yes. So, that was the beginning. Yeah. So Anna invested fifty thousand euros for an incubation hub we agree that would bring all the young enterpreneurs we can so we share a lot of knowledge and skills. Donkeys, actually these. Are the young entrepreneurs, thank, you very much, some. Ladies. And gentlemen. Last. Year September. We, the supported, assistance of some of the most buff people in the world I managed to get the Jaguar to be a. Special. Envoy of untied, for youth and small business. In. That act it becomes the most the, most expensive, employee, I have ever had with. The. Status of an assistantship, treasurer of the United Nations, one. Of the main things that made me look for Jack and I shared with him over two years of inside, Davos, World, Economic Forum. Is. Not, this stupid is ugly, the story he has to tell, the. Tenacity are, saying. Falling, is ordinary, rising. After fallen is, what text genius what takes guts. And. It in the reality, of the marketplaces most, small. Businesses, of high mortality. Rates. Very. Many businesses faint but, how would you keep trying, again after just fair that's, not a tip I thought needed to be told to the wife but there was a second thing. Some. Of you have just listened to me in the other room mentioned, by. The end of 2015. A. Global. Electronic. Commerce. Reached. 1525. Trillion, US dollars. That's, roughly, close. To the combined. World of the, top 100, enterprises, in the world, as. I bring Jack Ma on his first ever trip to Africa. Actually. Originally. We were supposed to have the entire trip in Arabic but because of Kenya's. Ability, to suspend economics, when he failed to an election I. Said. Okay we'll have this trip to Ronda but, on our way there we must stop in Kenya and I'm glad the tool we, created this possibility, and our. Stop to Kenya for me was first and foremost to. Give Jack a chance, to.
Talk To this audience and to. This give, this audience a chance. To. Interrogate Jack. First, let's tell us your story just the first three years we've watched the YouTube videos will love them were inspired by them just the first three years how did you do this how did you do. This we want to hear it first time don't we yes. I think that's a very good place to study thank you well. Thank. You very much I just this is my first, morning in Africa, and, now expecting. This day for, a long long time well. This, is the best, gift I've ever got from a doctor, catuey that. This morning talking, to you guys. Reminds. Me of my early days and. I. See from your eyes from, your heart which you tell it's, the passion the, inspirations. The dream, do you have I, remember. 1995. When I came back from the states I visit, the USA, for one for, 29, days and I, discover the internet so, I came back to China and say I want to do something called. Internet but. There is no such word called internet, before and, there's. No such a work on internet on the dictionary, so. The cup the government, does not let me to register company, called internet since. I had a no background on technology. No, nothing back computer even to today I know very, little about computers. Because. I don't think you, have to know anything before you do it the, great thing I see from your eyes said I know you don't have a lot of no house and those. People have a lot of no house don't want to do it. The, entrepreneurs. You, started with a dream you. Start with a belief, I also. Have to start with a group of people believe the dream, so. I. Came. Back to China and I say I want to do something called Internet China was not even connected to internet 1994. So. It's very difficult to convince some people there's something, called Internet that. Was tough, people. Say you're telling a lie, but. I know. This, thing exists. And I. Know it takes time to coming, some people by, convincing people is not a convincing people by words you, have to convince me by real results, I. Made. A lot of speech in, the early days and even then now I still, talking to a lot of lot of people I came here today. Here not to sell in China products. Because, you have got enough Chinese products I. Came. Here to share with you the entrepreneur. Spirit in the dreams. This. Is what I learned from the other part of the world I learned from the American dreams I learned. From a many other startups, in the whole world that, the streamed of how they do it I think. The very important, is that making. Sure your dream can be realized, making. Sure your dream make steps, by, step every, week every month, and. Making sure that your, employees, believe in making sure your, customer, happy, because. You are in if your customer, happy your, employees, are happy the shareholder, will be happy do. Not try to spin all the time we saw shareholders, spend. Enough time, with. Your customers, spending. Enough time with, the, employees, and, even, do not spend a lot of time with, competitors. Because, you, are we, are also early-stage. The. Best way to compete, to, fight. Against, their competitor, is your. Customers. It's, your colleagues so. Those. Early, days was tough. I. Was the number seven guy, in China connected, the Internet the. Speed, was so, slow. You were never in magicus in order to prove, I was not the thief Italian. People telling lie so, I invited. The TV friends my mind I've got some. University. Schoolmates, they. Work in the TV station, so I invite, them to come to my room and say with, a tweezer, camera, and I, want to tell there. Is something, called Internet it took us three. Hours and a half to, download the first front page of my website. But. At least approved there's internet there's yesterday. When I arrived. In Nairobi the speed, of internet Oh, was. So fast, it's so fast you guys are lucky. This. Was. So better so. Much better than the. Days when I started, and, I. Think with. The such a great. Infrastructure. Of the internet, you have with. The so many people, in the world today know by the internet there today were but more than 1.7. Billion people are already online. But. At that time, total. China less, than like 500, people using, the internet it's. Difficult. But. As I, said just in the other room. Everybody. When. You have a dream you have to dream globally, but you have to wing locally. You. Have to survive today, but. You also have to think about the future if. You, do not think about the future if you do not have a vision for 10 years later what will you be you will never have a great people follow you and join your company but. If you cannot survive. You. Go nowhere right. No matter how big dream is it is up telling a lie, so. The. Thing I proved, when. I started, my business I felt, for 1995, I fool, I started the cup first into the company do, not a workout, so, I joined the government for, what working, for 13 miles as a part-time, contractor, did not a workout so 1999. I, study. My alibaba.com. In my apartment. And. I I know I may not succeed but I told my 18 founders that.
First. Even. If we feel deep, many, people some people will win. Internet. Is the future ecommerce. In the future no. Matter you like a lot, 80%. Or 90% of. Business in extra 30 years will be online, and. No matter what the world the best way to serve the world is Internet, so. I know that if I can have like I cannot make it somebody will make it so I continue, to make it and then. The second thing I prove tried to prove is that if Jacquemont, can be succeed says succeed. 80%. Of the young people can be successful we. Don't have money we, don't. Have a relationship I, don't, have a powerful. Rich father. Even though we don't have a rich father or uncle, then. Can sponsor us everything. We do is the, 18 founders we. Believe the future will, make progress even among, the 18 founders we only have a three engineers. Amount. Of three engineers, only one of them had a three years experience a university study, computer, the other two. They. Are like amateur computer. They when, they open it they don't know how to fix it. Start. From there - - today we have twenty five thousand, engineers. In. Our company, and. Nobody. Come to buy and the self for. The first two. Weeks. Terrible. We build an e-commerce company nobody. Comes to sell so. We have to list our own products, on their way, to the for two weeks nobody, come to buy so. We have to buy ourselves, and. Then. The first first. Dip my, mouth some. People come to sell things on our site we buy everything, so I buy a whole house of rubbish for, the home house, we. Started, nobody, believed, ecommerce, and to, today or last year we sold, 550. Billion US dollars from. Nothing. To, 550. Billion dollars and, I think compared, to. Yesterday, was, big sales but come ten, years later we. Are nothing. This. Is what I want to say the great ideas, I heard in the next room, inspired. Me and changed. Mine, you. Are guys at the hope of Africa, and, I. Believe. 15. Years ago 13 years 18, years in my apartment, I told my team we, are the hope of China. Because. We, are the guys without any resources. If. We can make it, the. Most people can make it if most. People like us who is out of money was our resources only, with the dream and belief if we, can make succeed China, will be successful, you, guys said the hope of the Africa because. What I see I did not steal to you guys a lot, of money, because a great. Intrapreneurs. Should. Not have a money if you have a money of mine this, ice is US dollars this, ice I'm beat and you're talking about the English Pounds nobody. Will. Work reply if, you have a good dream if you, have a plan. To. Making things making progress things. Will happen and I. Changed my mind to this morn just ER half. An hour there I would, do more things in, Africa. And the, only thing I want to do is not to sell. Products. Here and. I will enable you to sell, your dreams, all of the world in Africa supporting. Entrepreneurs. Is always, my my. Dream because, I know how. Tough, it is to be, an entrepreneur. It, is difficult, I never. Cry I said, I only make my competitors, cried. You, see if I cry I, probably. Die a hundred times, just. We, have to encourage. Our team and I say making. Sure that we that. We can survive tomorrow, as I said before. I answer, question I want. To say this, is my belief. And. This. Is what I tell every, day to myself today. Is difficult. Tomorrow. Is much more difficult but, the day of tomorrow is beautiful. Most people died tomorrow evening, even. Today as my size for. Our company's, size I. Still. Believe. Today's, very difficult I have more problems. Than. Anybody, here can imagine. You. Say oh now you are big you make a billions, of dollars every you. Know quarter, I have. Much, more problems, than you have, much. More headache than you have when. I was young. 18. Years ago I thought what, if I can make my company bigger then I have I can Sega, lie, on the beach I have a lot of people work for me I, thought. That, would now, the, combin is getting bigger my problem, is getting bigger. I'm. Getting much busier. But. This is our life, one. Day where. You pick up the. Job as entrepreneur. You. Know this is your life you pick up don't. Complain. Where. Is the opportunity the, opportunity. Always. Lies, in, the place where people complain, if. You solve the plot complaint. You. Got a problem you got a opportunity this, is what I believe and, also. As entrepreneur. I think most of the projects, I heard there is about platform.
You. Are guys are building the platform you. Know the essence of building the platform the, lot of people, in China want to play they build up a platform. Dude. The. Difference. Between build a company, a bit of a platform is, a. Platform. Is to. Enable, others make. Other people, happy a company. Is to make yourself happy, this. Is difference between 20 century to the first eccentric, if, the. 21st, century, if you want to be successful. Making. Sure your, employees are successful. Making. Sure your, customers, I'm a successful because he's using your services if. You. Can make your custom successful. In. Price successful, your. Platform, will be successful, this, is the essence, and. Remember, that, empower. Others, you. Are empowering yourself, now, you are empowering a platform, thank. You so any questions you have, thank. You very much, the, question, so. Question. Pigtails minutia, you have a question about leadership. So there's, a there's a lot of entrepreneurs, in. The room today and I'm, one, as well we discussed. Our, business a little bit earlier, one. Of the struggles that a lot of our entrepreneurs are finding is how to become. Leaders. And there's I really. Believe it a big distinguishing, factor between entrepreneurs, and and and good leaders so my question is are there any leadership. Principles. You. Know that, that have contributed to your success as a leader not as entrepreneur. Leader. Does never fixed. A style. Right. Some, leaders good speaking, somebody, they'll never speak by actions leader. Leadership, doesn't have style everybody can be a leader a good, leader should have a vision. The. Vision is that vision, not met this is very good because we're, not working the company, where. Everybody, was disappointed. I have to tell them I have to see before, the other people see the opportunity. Where, everybody, excited I have to see the disaster. Especially. As a senior. Of like an a in Alibaba. Group my. Job is to see the problems. Of the, future. So. And. Kill. The problems. Before the disaster come so, a leader must, have a vision a, leader. Should, inspire. Team, a, leader. Should. Discipline, a team I learned my management, skill one day I was talking to the. The, famous General, of. The United States. He. Was talking, to us group, of people say how. Do you discipline, your lieutenant. He's. A general. The.
Guy Who lead the, first Iraq, war what's, he's a pole, caught, pollen caught ya pollen coldness, he said you as a leader, you, have to get up early, before the lieutenant you. Have to sleep before, the loot lieutenant. Late default, after, the lieutenant, you have to eat before they are after the lieutenant to eat but. If I have a problem with the lieutenant, what are you gonna do. Fix. Him, remove. Him and fight, him. Leadership. Is not only bad inspiring, leadership. Is those people, who join your company, you. Have to create a valley for him you have to making, sure in, three years, he. Will be different, not. Because his job is different because if the people are not different the products, will never be different I. Told. Many, people when they join Alibaba, I say guys. I don't, know fortunate, or unfortunate enjoy. Alibaba. We. Work much longer than the others. Much. Higher. Where. The more problems, and most of the companies. If. You can survive in the Alibaba, you can survive at any company in the world because. Life is tough, we, never promise, you. Will be rich, you'll. Be successful you, will promise, promoted. But, we will promise you. You. Will be a problem, you, have, a wrong you're. Making mistake you, have a terrible, boss we. All promised. So. You set the expectation. They. Have a good vision so. That is the way we manage, the. Company and I. Think where. You hide good people the, COO people believe. The vision there we go so when I visited, a company where, there is a good CEO or not I do not listen to the CEO I listen. To his people, if. The people believe the vision all, the. People believe this guy. If. The people believe in the vision, if. The people believe this guy, this, company, has hope. I'm. Good a. Good. Entrepreneur, can't. Always tell, good stories I, don't. Need a listen story from you guys I can, tell your people right. If your, people, any. Young people your company he, can tell me the vision, he. Can tell me what they're doing that. Is, a good company. That's. Leadership leadership, making sure everybody, when they sleep, when. They drink when they talk when they go to toilet they talk to your vision and they, believe it. Great. Most. People who work for me you hear what has just been saying I. Hope. You believe in me so I'm gonna take one question you made the first ten thousand dollars in the first month you're. Happy because we know us and no much money but, you wonder when these starts, to stop but you start when you know the right time stop paying yourself because.
Most, Entrepreneurs. That have realized, that they. Don't get a grant or funding, or the medal, little money they're making this like you know what I want a better Ranger over the sub buying too many things they don't need but, when do you when, is the right time for, you to know that you can start paying yourself to myself yes. Good. Question a. Lot. Of startups, complained. That they never get the money from banks, never. Get the money from the other venture capitalists, well. Rejected. By banks. Rejected. By your venture, capital is very normal. You've. Gotten money from these guys nah normal why. People want us help you. Right. There's. No reason people help you, you. Get a help because. You. Earn them credit. You. Under repetition. So. Borrow. Money from. Your friends, families. That's, the second first of step as everybody, if you cannot even borrow money for your friends relatives you, guys have a problem, nobody. Trusts you right. So. I heard you borrowed three two thousand, one thousand, dollars, that's, good that that, means you. Have. This. Trust. From. Those, people, that, around you at least you got somebody so. That's how the seeding, money, CD. Money means you, have to grow what. Does the, seed is not the money, that. Money is, what that, money is the trust of the seed you. Have, to use your money very carefully, and. Then. Spend. The money I I, tell you the true story, that. Are why I did. 18. Founders I, told. 18 people the. Day when we have the first two meeting I say guys now. Put, all your money on the table nobody. Is allowed to borrow money from your parents I, don't want to spend their pension. Nobody. Is allowed to borrow money from friends, that's your saving no matter how much money you have put. On the table keep, ten, mouths job. Lot, living experience, in. Your pocket. Because, 10 months later if, we cannot raise, money or make, money we, all go together looking, for jobs and. You. Have to live five. Minutes, driving. A walking, distance from my of my apartment. So, I call, you your con and, people. Say we don't go home we sleep there and. Then. We. Gather fifty. Thousand, dollars we. Thought we can last for ten miles but. We only lasted, three months even. If we spend every cent. Very, carefully. This. Remember. Good days always come very late, tough. Days always come early, no. Matter how much, you how safe. The. Money spent very quickly. So. We. Do not have paid for. This first. Eight. Mouse even, if when we raise the money from venture capitalists, five, million dollars our, first round we, do not have K pay and then, we start to pay five hundred and, B which is like six to sixty dollars a. Month. Sixty. Dollars what my CFO, today. His vice chair of the company he's, paid, at. That time like, three. Hundred. Thousand. US dollars, paint. And you, pay he, joined the mean I say I cannot, a pay your money he said okay I cannot. Even pay you, five. Hundred I'm be for one month he said okay. So. We all agreed for the first year we don't have a pain when. We start having the pay we pay the employee, first.
When. We have a race month when we have certain money that we think we can survive for two years I told. The team all. Right. Let's. Start to pay but, we can never compare, our pay with. The other company, people say I Jack you know Microsoft to pay to us that much that, you only compares, that much as a police go to Microsoft. But. For, us we give options, we. Give shares. My. Share in the company early days well that got close to 60%, today. My shirt is only 7% I, give. All my shares to the people because my investor, did not believe one, of my key investors, he did not believe in giving shares to the colleagues, he. Said no no no no check don't give Church to the call to the in price I say I have, to say if you if you want to give you give I don't give as I give. Even. I've give my shares today. I, think. I don't know how many what is my stock. Price yesterday a hundred some, $50. Something we. Start from one cent. From. The first day one cent to today. Would. Divide a lot probably like five hundred eight hundred dollars. When. I give them one cent to too many in price those. People love the one cent. They. Are colleagues, they. Say I am ok with, 509. Be $50, a month I love, the share. Options, I want to shares those, people on the dollars they don't want options you know they are not your people. So. I give, a lot of shares to people I remember. One. Day when we want to dissolve USA office in Silicon Valley because we've made a mistake have an office in America I said, guys, either. You bring two thousand, US dollars back, oh, one. Cent for each shares. Everybody. Say give, me $2,000. Nobody. Want Ari Papa shares I know we hide the, wrong people. When. We're profitable. I'll. Close, enough profitable. We. Start to give you if you are profitable, without, even, paying your customer we are in priced properly, you are not profitable, at all a. Real. Business, you should never rely on your, cutting your colleagues, have. A tiny so. Early. Days of Alibaba, our pay, in our city is below, average but, our options good and, then. When we're profitable we, say we, should be better a little bit better than. The average, pay of our city because. We don't want today even as today, I think, Alibaba, is the richest company, in our city, we. Can pay them very good, but. We still keep them we don't want to unbalance. The city we don't want to get every company the high good people join us. This. Is the ecosystem. So. We encourage, our colleagues when.
They're Five years old or, one if when they stay in the five years or ten years we, encourage, them to join, the other company. Even. A competitor. Because. In this way that. You are, get. A new fresh into. And those people for. Five years ten years because they, are so tight who, as we working so hard, that, for. Five years in Alibaba, is like 15 years in any other company, so. We have to let them go. Pain. Think. About before you, break. Even you have. To think for, your customer in price because they have wife they. Have kids their, family, to raise, you. Can be crazy, your, people cannot can be crazy but, you as the chip as the founder, and CEO you. Have to carry your colleagues. Only. When you're careful the colleagues, your. Colleagues. Will. Care for your improv will care for your customers, that's what we. I guess. That's ours a standing ovation guys. Thank. You so much and, all the best yeah I think you guys have a great great dreams and keep on doing that and Alibaba. Will do anything we can to enable, guys so, we, have gone ahead and we've. Met your parents of, two. Baby elephants, we. Adopted two baby elephants, because, a, lot. Of these people here are like small baby elephants, small businesses, that want to grow to big giant businesses like Alibaba, so the, significance of the gifts we're about to give is the fact that all your small businesses can become big giant elephants, which, are giant and gentle you pay attention to your customers you pay attention to your employees and any pay attention to your shareholders and so, I will I will ask dr., QT to come, and. You. Have a baby elephant that you can take care of for a young baby in Vegas you, will receive emails from us and from the David Sheldrick foundation about, the growth of the baby elephant, as much as you'll hear the news from this country Jack thank, you very much on behalf of this ecosystem you, have a baby metal baby. Tatu baby metal, that's, your baby elephant, for the next one year you receive email updates through. JSON or yourself and you'll get to know how the baby elephant is doing it's a David tragic foundation if you ever decide to come into the country just go there say I don't see my baby and they'll be shown what you're l. Thank. You guys. This. Is Alibaba. Top down or we call the smallest beautifulness, as small as powerful, great. Thank, you thank, you very much. And. Thank you so much for Duke you supporting, all these intrapreneurship, a lot of things I can learn from you and.
Thank. You very much honor I receive. This on your behalf guy is small, and beautiful. So. We're going to do a quick selfie, okay, we, are selfie people we are selfie generation. You.