The second time I read Rework by Jason Fried, I wanted to summarize the key points of the book so I can refer to it quickly later. This is a book I really enjoy, many of its ideas resonate with my own thoughts, and some others don’t.

Jason Fried is the founder and CEO of Basecamp, a company that sells business management software. Despite having only about 60 employees, Basecamp is valued at $100 billion. The book shares Jason’s thoughts on the mindset that helped his company achieve the success it has today.

Although the book is divided into 11 chapters, I want to summarize it in my own way, with the 20 key ideas below.

1. Ideas are free, what matters is execution

How many times have I heard someone say, “If I had started a social network like Facebook back then, I’d be a billionaire by now,” or “I wish I had implemented this idea five years ago”? But the truth is, there’s a huge gap between an idea and success, and it requires a lot of effort, sometimes even luck.

Chances are, the brilliant ideas you think of in your head are also shared by thousands of others. What matters is whether you actually take action to make them a reality. Don’t be afraid to share your ideas with others, because in most cases, ideas are free.

You don’t need to jump into action immediately after having an idea. Write down unexpected ideas on paper, and maybe a few days later, you’ll realize they aren’t as great as you initially thought. Choose the good ones and take action.

2. Learn from success, not failure

People often say “Failure is the mother of success.” But in reality, successful people tend to have a higher success rate in their future projects. On the other hand, those who fail often have a similar chance of success in their next projects as someone just starting out.

Why is that? Because once you succeed, you gain experience, relationships, and money to make new ideas come true. If you fail, you may end up with debt, and your morale will be significantly lowered.

3. Be a business owner, not a boss

A business owner is someone who creates a profitable business. The business does not have to be in a fancy office building, with a receptionist and a lobby. Google started in a garage owned by the sister-in-law of co-founder Sergey Brin, and Basecamp also started by sharing an office with another company.

So, don’t try to appear glamorous or use formal language as if your company is a large corporation. If your business makes even a small profit, be proud of that.

4. Keep the team lean

Outsiders often evaluate the size of a company based on the number of employees. For example, a small company has fewer than 200 employees, while a medium-sized company has between 200-300. But employee numbers and business scale are not directly related. Basecamp, despite having only about 60 people, is valued at $100 billion.

It’s strange that many small businesses wish they had more employees, while larger businesses wish they could streamline their teams. In reality, a lean team with quality members works more flexibly and smoothly than a large, cumbersome team.

In a company with many employees, there are always people who do less work than others. These people tend to use empty words and love meetings because that’s where they can showcase their importance. Keeping a lean team helps eliminate such roles, reducing waste and improving teamwork.

5. Hire based on skills, not resumes

Don’t evaluate employees based on their resumes. Resumes are easy to create and often unreliable. Observe them during the probation period. At this stage, they won’t be able to hide their weaknesses.

Don’t try to recruit top talent. The right person is someone who can contribute to the common goal, fits the company culture, and demonstrates a desire to grow and learn.

6. Prioritize people who can write

If you have two candidates with similar qualifications, hire the one who can write. Whether for a marketing, accounting, or programming position, writing skills are essential for effective communication within a team.

7. Make the most of limited resources

There are stories about prisoners who can create escape tools using only a metal rod or a spoon. I’m not talking about committing crimes, but people always find ways to overcome hardships with limited resources. Therefore, don’t worry too much when your business faces limitations in manpower or finances—make the best use of the few resources you have.

8. Raising external capital should be a last resort

Startups often love the idea of raising external funds. The idea of spending someone else’s money sounds appealing, but in the long run, it can have a huge impact on the company. You will have to answer to investors and let them make decisions about your business.

Think carefully: do you really need $100,000, or would $10,000 be enough? Can you save the money or borrow it? Only consider external funding as a last resort.

9. Meetings are a waste of time

Meetings are one of the most time-consuming, pointless activities in a company. A meeting with 10 people that lasts an hour wastes 10 hours of the company’s time. And often, meetings are lengthy and don’t provide much value.

So, if a meeting is necessary, only invite the relevant people, focus on key topics, and ensure everyone knows what they need to do next after the meeting.

10. Don’t make long-term plans, focus on the present

Don’t make detailed plans for the next year, because circumstances can change at any time. You might plan to read for an hour tonight, but an unexpected task may reduce that to 30 minutes. If you can’t be certain about something simple like that, how can you be certain about what will happen in a few years?

Instead, focus on current plans. Long-term plans, if any, should only be broad bullet points.

11. Focus on the core value

Every product has a core value, and everything else is secondary. Whether bread has meat filling or is plain, it’s still called bread. Therefore, focus on the core value of your product and make it the best it can be.

A software product can be brought to market once its core functions are complete. Additional features can be added later.

12. Don’t chase competitors, create your own identity

Don’t copy competitors. If you do, your product will be theirs in a different package. Create unique value that only your company has, and the right customers will choose you.

13. Create products that are good even after customers take them home

Don’t just create products that look good on the shelf. Make products that customers will still love once they take them home and use them over time.

We need to build long-term relationships with customers based on trust. A customer who trusts you might not only buy your product again but also recommend it to others.

14. Be honest with customers

If your product has issues, be honest with your customers. You can’t hide anything from them. By being upfront from the start, you show that you are serious about a long-term business relationship.

15. Learn to say no

Not every piece of customer feedback needs to be followed. If a customer requests a feature that doesn’t fit with the company’s development direction, say no. It’s better to lose an old customer than to make the product less appealing to new customers.

Many of Basecamp’s customers were unhappy that the company’s product had fewer features than its competitors, and they wanted more. But the company often declined because they wanted to keep everything simple for new users.

16. Responding quickly to customers is the best you can do

When a customer asks for help, they’re having trouble using your product. The best thing you can do at that moment is respond as quickly as possible. A quick response can turn an angry customer into a happy one, and it’s also the best way to market your business.

17. If customers oppose changes, stay calm and trust yourself

Sometimes, a change in the product can upset customers. People tend to stick to habits and resist change. If you trust your decision, accept the complaints and don’t do anything. After a week or two, customers will accept the change and begin to see the positives.

18. Culture is not created, it forms itself

Don’t impose policies or rules when you first start a business. Company culture is formed through communication and working together. Setting rigid rules can inadvertently kill openness.

19. Give people the opportunity to shine

Everyone has their own strengths and can excel when given the chance. When facing a problem, consult the right people and give them the opportunity to try solving it. You’ll discover that these people are more talented than you thought.

20. Give people their privacy

Invading employees’ privacy is one of the quickest ways to create a toxic work environment. You can’t take away every hour of their 8-hour workday. If they watch YouTube or browse Facebook for a bit in the afternoon, does it really affect anyone? If you try to stop them, they’ll just find other distractions.

These are the 20 key points presented in the book. As you can see, many of these ideas differ from the thinking of most businesses today. But they are very practical, as evidenced by how the author applied them to build and maintain a healthy business like Basecamp.