Business

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Strategic Acquisition vs Financial Acquisition vs Aquihire

Different motivations for an acquiring company typically have significantly different valuation models. (related: rollup — “a technique used by investors (commonly private equity firms) where multiple small companies in the same market are acquired and merged.”, P/E-driven acquisitions, auction) Source: Gabriel Weinberg's

2018-09-25T01:48:25+00:00

Secrets

“Every one of today’s most famous and familiar ideas was once unknown and unsuspected…There are many more secrets left to find, but they will yield only to relentless searchers.” Source: Gabriel Weinberg's Mental Models I Find Repeatedly Useful

2018-09-25T01:48:25+00:00

Luck Surface Area

“When you do something you’re excited about you will naturally pull others into your orbit. And the more people with whom you share your passion, the more who will be pulled into your orbit.” Source: Gabriel Weinberg's Mental Models I Find Repeatedly

2018-09-25T01:48:24+00:00

Freemium

“a pricing strategy by which a product or service (typically a digital offering or application such as software, media, games or web services) is provided free of charge, but money (premium) is charged for proprietary features, functionality, or virtual goods.” (related: “If

2018-09-25T01:48:23+00:00

Open Platform vs Closed Platform

“A closed platform, walled garden or closed ecosystem is a software system where the carrier or service provider has control over applications, content, and media, and restricts convenient access to non-approved applications or content. This is in contrast to an open platform,

2018-09-25T01:48:23+00:00

Capital Allocation Options

“Five capital allocation choices CEOs have: 1) invest in existing operations; 2) acquire other businesses; 3) issue dividends; 4) pay down debt; 5) repurchase stock. Along with this, they have three means of generating capital: 1) internal/operational cash flow; 2) debt issuance;

2018-09-25T01:48:22+00:00

Reversible vs Irreversible Decisions

For reversible decisions: “If the decision was a bad call you can unwind it in a reasonable period of time. An irreversible decision is firing an employee, launching your product, a five-year lease for an expensive new building, etc. These are usually

2018-09-25T01:48:20+00:00

Product/Market Fit

“the degree to which a product satisfies a strong market demand.” (related: pivot — “structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.”, “rebuilding year”) Source: Gabriel Weinberg's Mental Models I Find Repeatedly

2018-09-25T01:48:19+00:00

Minimum Viable Product (MVP)

“A product with just enough features to gather validated learning about the product and its continued development.” (related: perfect is the enemy of good; de-risking; Customer Development, “Get out of the building.”) - Gabriel Weinberg "Minimum viable product is a process for

2018-09-25T01:48:18+00:00

Conjoined Triangles of Success

Now what do those two triangles make together? A box. They make a box. You can’t make that shit up. — Jack Barker Source:  Jack Barker via "13 Mental Models Every Founder Should Know"

2018-09-25T01:48:16+00:00