In this episode of The Knowledge Project Podcast, Kunal Shah, founder and CEO of CRED, shares his insights on human motivations, cultural differences, and decision-making strategies.
Drawing from his entrepreneurial journey, Shah discusses the importance of understanding what motivates people, spotting trends, and the value of resilience in business.
Resilience in the Face of Failure
The ability to bounce back from failure is a significant factor in long-term business success.
In certain communities, there is no shame in failing in business, and people often start again after a failure.
Resilience in Entrepreneurship
Entrepreneurs need to develop resilience and focus on their end goals, regardless of external opinions.
This ability to withstand criticism and mockery can significantly contribute to business success.
Creating Memorable Experiences
Creating memorable experiences and emotional arousal is often achieved through inefficient methods.
Trips to inefficient places will be more memorable than trips to efficient places.
Understanding Real Value
Understanding what people are actually paying for is crucial in business.
Early experiences in business can teach entrepreneurs to understand the real value of products and services.
I believe that insight is the smallest unit of truth that is actionable… people who operate in the currency of insights tend to be generally more successful, at least in business. – Kunal Shah
The Power of Insights
Insights, defined as the smallest unit of truth that can be acted upon, are a valuable currency in business.
They enable better understanding and interpretation of data and trends, leading to informed decisions and strategies.
Understanding Product Value
A deep understanding of a product’s value is crucial in business.
It aids in better decision-making and strategy planning, especially in determining why someone would pay for a product and which products would yield higher or lower gross margins.
Community-Centric Approach
A strong focus on community benefits can significantly contribute to business success.
Offering low-interest loans to people in the community encourages more people to start businesses and succeed.
You cannot develop substance, net worth, wealth, experience unless you’re constantly willing to risk your reputation… people who can feel extremely okay to risk up to 30-40 percent of their reputation, wealth, health are the ones who propel further. – Kunal Shah
Understanding Time Value
Understanding the value of time can lead to different decisions about convenience and time-saving products.
In some cultures, people rarely understand their value per hour, leading to poor decisions regarding their time.
Personalization and Status
People are willing to pay more for personalized items and products that elevate their status.
Creating artificial scarcity can drive up demand and price.
Soulfulness and Inefficiency
Things that feel soulful, such as certain vacations or foods, are often inefficient.
However, these inefficient methods often create memorable experiences and emotional arousal.
Standardization and Scalability
While standardized things are easier to scale, they are also easier to disrupt.
Non-standardized things are harder to scale but also harder to destroy.
Trend Spotting
Spotting and acting on trends is a key factor in staying ahead in business and finding new opportunities.
Sharing new trends and ideas within a community can allow for early entry into new businesses.
