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What is a company?
A company is not an idea, a pitch deck, an app, or a product.
It is a way to organize people to create and deliver goods or services in a more efficient and effective way that what existed before. (1/)
A company is not an idea, a pitch deck, an app, or a product.
It is a way to organize people to create and deliver goods or services in a more efficient and effective way that what existed before. (1/)
We could all individually try to build computers in our garages, but all our efforts combined could not transform the global communication, productivity, business, and entertainment landscape as much as a company—an organized collection of individual efforts —like Apple did. (2)
If a company creates more efficiency and value than the status quo (by creating something from nothing or generating economic opportunities), then the company becomes more valuable and the people who have ownership in the company can control how the surplus value is invested. (3)
A founder/CEO is not necessarily the smartest, most hardworking person in the company. They are the creator and maintainer of the system (usually centered around an idea/product/strategy) that allows everyone else to thrive and produce their best work together. (4)
A leader and organizer can make a huge difference. Look at Microsoft under Satya vs Ballmer. Satya is not writing code, but under his leadership, Microsofties are working on more impactful products, customers are getting more value, and the company is generating more cash. (5)
Those who take the risk to help create the system, such as early employees are usually rewarded with more ownership in the company than those who are executing within an established organization. (6)
Has income inequality gotten out of hand? Yes—likely due to the monopolistic nature of many of the most valuable companies today and the over-financialization of our economy as a whole (I’ll save that for another thread). (7)
However, the idea that Steve Jobs is less impactful to Apple than any individual engineer, or that he plundered his wealth from someone else, is misguided. (Fin)
