Operations

  1. People
    1. Positions
      1. Lead
      2. Operator
    2. Feedback
      1. Weekly
      2. 1:1s / Feedback
  2. Business
    1. Press Release
    2. Landing / UX
    3. External FAQ
    4. Internal FAQ
    5. Team
      1. Lead
      2. Operators
    6. Finance
      1. Accounts Receivables
      2. Accounts Payable
    7. Product
    8. Marketing & Sales
      1. Distribute
      2. Source
      3. Prospect
      4. Close
    9. Service
      1. Docs

Operations works through a standardized playbook. This playbook is in addition to the Capital Allocation playbook.

People

Positions

Lead

Operator

Operators perform specific tasks. We do not look for generalists at this role because we need people who can perform specific functions repeatably. With our businesses our goal is to hire people who can do the job for the least cost. So Operators are given specific functions to achieve.

Every operator has a role, responsibilities, and ownership.

Feedback

Weekly

On a weekly basis do a review with the following questions:

  • What three things went well last week?
  • What three things didn’t go well last week?

Once done, create action items to track the things that didn’t go well so we can improve upon them.

1:1s / Feedback

One-on-ones focus on just two questions:

  • If you were to quit what would your reason be?
  • What one thing would make you happier?

Once the feedback has been gathered, create an action item to address the issue.

Business

Each brand’s playbook should have a criteria:

  • Simple. A brand should be simple to operate. It is should not need more than six pages to explain and run. The fewer things it does the better.
  • Customer Centric. The company is building for a specific customer, targeting a specific industry.
  • Job to Be Done. Focus on performing a single task well.
  • Delegatable. It should be easy to delegate without much or any effort.
  • Just in Time. We make-to-order. We Build for what the customer asks when they ask for so we don’t keep inventory.

Before any code is written, a document must be written building the business on paper and a no-code system to prove out the idea. The best methodology for this is to use Amazon’s Working Backwards. Working Backwards starts with a customer centric Press Release, FAQ, and our own addition a Landing Page as the customer would see it if they came to the website. Lastly how cash is collected and the assembly line called the flywheel must be defined. All of these are the hypothesis that is created to think through a business to the individual components. This is the low scale model of the business, doing the fewest custom pieces to make it work. If it is a brand we have acquired it is the current state of the company.

Once things are defined there needs to be a continuous updating and tweaking of the Playbook to smooth out the delivery of the product to the customer. Each iteration of the flywheel should be faster and cheaper to deliver while fulfilling more and more of the customer’s needs.

Press Release

Every time a new feature or product was proposed, [Jeff Bezos] decreed that the narrative should take the shape of a mock press release. The goal was to get employees to distill a pitch into its purest essence, to start from something the customer might see—the public announcement—and work backward. Bezos didn’t believe anyone could make a good decision about a feature or a product without knowing precisely how it would be communicated to the world—and what the hallowed customer would make of it.

Everything Store

Every company should start as a press release. A press release is a mission statement written from a customer standpoint. It forces the problem to be explained and addresses the goal of the mission from the point of view ofthe Customer First. We use this to then solve the rest of the problems ofdelivering to the customer, but a press release defines the first step of whythe customer needs this and why we are doing the product or service.

The template for a press release looks like the following:

[Title]
[Product and who the customer is]
[City, State]–[Intended Launch Date] ****– [Intro paragraph]
[Problem]
[Solution]
[Quote by leader in your company]
[How the product/service works]
[Quote by a customer of the product/service]
To learn more, go to [URL].

It should be clear and solve a singular problem well. It shouldn’t be divergentideas, and if they are they should be separate ideas. The goal is to clarifywhat we are building.

It should be clear and solve a singular problem well. It shouldn’t be divergentideas, and if they are they should be separate ideas. The goal is to clarifywhat we are building.

Landing / UX

Our businesses are built around a single “Job to Be Done” for a specific niche. To fulfill this we keep our landing pages to a single page. Write the landing page along with the Press Release as it creates a public page that you can show potential customers and get their feedback. The landing page should be created and emails collected using Google Ads before anything code is written. This helps gauge interest for the app while you are building the product.

A landing page should have the following structure:

  • Hero
    • A clear pitch to the customer
      • A smaller secondary pitch
    • A click through action
  • Features
    • List three benefits to using the product
    • Create a clear customer for the product
  • Customer Logos
    • List customer logos for people using the product
  • Testimonials
    • Write a few blurbs from the customer or potential case studies
  • Benefits
    • List three benefits to using the product. How will it improve the customer’s life?
  • Pricing
    • Have three pricing tiers
  • FAQ
    • Add what is listed in the External FAQ below
  • Team
    • List Team be their positions.
    • These would be potential future candidates as well.
  • About
    • Simple owner based reason for building the product. Why it exists and why it was built.
  • Contact

External FAQ

  • Answer the customer’s questions.
  • What would they ask and how do you fix it?

Internal FAQ

A set of questions that are answered from an internal standpoint. The questions the customer would ask should be on the landing page FAQ.

  • Product
    • What is <Product?
    • For whom is <Product> built?
    • What is the problem?
    • Who has the problem?
    • What are the costs associated with the problem?
    • How do people currently solve this problem, and how do those solutions fall down?
    • What has changed enabling a new solution?
    • How does the new solution work?
    • How do you know it’s better? (Quantitative, Qualitative)
  • Total Addressable Market
    • How many consumers have this need or problem?
    • How big is the need?
    • For how many consumers is this problem big enough that they are willing to spend money to do something about it?
    • If so, how much money would they be willing to spend?
    • How many of these consumers have the characteristics/capabilities/constraints necessary to make us of the product?
    • Who are the existing competitors?
  • Economics and P&L
    • What are the per-unit economics of the service? That is, what is the expected gross profit and contribution profit per unit?
    • What is the rationale for the price point you have chosen for the product?
    • How much will we have to invest up front to build this product in terms of people, technology, inventory, warehouse space, and so on?
  • Feasibility
    • Is it within our area of competence?
    • What are the challenging product engineering problems we will need to solve?
    • What are the challenging customer UI problems we will need to solve?
    • What are the third-party dependencies we will need to solve?
    • How will we manage the risk of the up-front investment required?
    • Who is running this? Are they the right people for this project?

Team

Every Business Unit

The make up of an individual unit at the company is small

  • Lead: A lead runs a miniature company. They are responsible for getting specific tasks accomplished. This leads to the outcome that a Lead is focused on
  • Operators: Operators are our workers. They are a gig workforce either: consultants or agencies. They are hired to the high bar of YerraCo based on our principles. The Leads oversee the use of Operators to get the job done.

Lead

A lead runs a miniature company. They are responsible for getting specific tasks accomplished. This leads to the outcome that a Lead is focused on

Role

Responsibilities

Ownership

Operators

Operators are our workers. They are a gig workforce either: consultants or agencies. They are hired to the high bar of YerraCo based on our principles. The Leads oversee the use of Operators to get the job done.

Role

Responsibilities

Ownership

Finance

Finance has to be a part of the equation of every business such that Accounts Receivable is higher than Accounts Payable. Otherwise, you are just losing money.

Accounts Receivables

Accounts Payable

Find terms that are Zero cash conversion cycles or Negative cash conversion cycles. Since we are making things mostly in a Just in Time manner we are seeking to delay when we pay suppliers so we can have cash on hand for regular payments while investing excess cash into further growth.

Product

A business does one thing well, with the appropriate people to run it, and technology to support them. It should be incubated using existing internal infrastructure to find product-market fit and then divested to be run independently as fast as possible with its own leader and PnL.

Going from incubation to divesting has a few benefits the first being that we can use the existing infrastructure and capabilities and not have to start from scratch. The second is that when we find someone we can completely divest the company after a certain amount of revenue.

  1. Incubate the project internally and build a prototype, use existing resources.
  2. Setup a separate Stripe / Bank account.
  3. Market and find traction.
  4. Find and

Find a Single Threaded Leader

  • Have them invoice me for work.
  • They are paid through the profits.
  • Once paid they are

Divest

  • Once we have built a process and can execute repeatably we split it into its own company.

Marketing & Sales

Distribute

Source

  • Content
  • Social
  • Ads

Prospect

Close

Partners

Figure out people to partner with. Work with them to get the task done together.

Competitors

Figure out who the competitors are and how what they are doing fulfills what you are trying to achieve. Then figure out what features could be competitive advantage for you as well. Should do this every so often.

Service

Customer Experience

Docs