Generally, when people talk about investing they think it’s about buying assets. However, that’s not the case. There are plenty of activities in which one can build assets with little to no money. If you create a blog, you’re creating an asset. If you learn, you’re improving your asset. When you go to work, you’re creating value. All of these activities have different pros and cons but one could say that all of them will bring you more money. SomeRead More→
For quite a long time I’ve been thinking that people tend to focus their time on easy things instead of focusing on the complicated ones in an attempt to avoid pain. People, in general, try to avoid harmful situations which leads them to take the path with the least pain possible (at least at the start) i.e. the easy path. In some cases, the easy and straightforward choice may become the worse long-term solution. But this scientific publication made meRead More→
Currently, the idea that the crowd is wiser than any single individual is widely spread. Places like Wikipedia and Quora rely on the network effect of the internet to benefit from collective human knowledge. The idea behind this is that the aggregated knowledge of the population is able to find the right answer and cancel out the noise. But the crowd may not be wise. The un-wiseness may be caused by the herd mentality. Once several people group together andRead More→
“Blacks swans” and “gray rhinos” refer to two very different but dangerous threats for investors. Nassim Taleb popularized the term “black swan” through his book (es) with the same name. But the black swan theory comes from much farther and is a metaphor describing an unforeseen event that has major effects. These events are so rare that they do not enter into the computations or any kind of possible expectations; although in retrospect it seemed predictable. At the same timeRead More→
It always fascinated me how could estimate the market size. Many times, you have this wonderful idea but it turns out that no-one was asking for it. So here I’m going to explain how to estimate the market size using available resources in a very “rule of thumb way”. So, the reason why I’m using Facebook in this case is because, like it or not everyone is there, and the big brother knows everything about us. Where we live, age,Read More→
I the Business Model Navigator pdf article one can find the 55 business models that exist now. Any company that generates revenue is using at least one of them (if not more). This may become handy sometimes.
Any company bases their success on their customers; therefore, it is highly important to define the customers right. There is never too much emphasis in defining the customers correctly. The foundation of any Company, and specially startups, is about identifying and meeting the consumer needs. The better we do this the greater the satisfaction we are going to produce to our customers and the higher chances of future success we are going to have. During this exercise you shouldRead More→
On my last post I wrote about the real competitive advantages that your company may have. There are, however, other ideas that sound like competitive advantages but they are not. Sometimes we get obsessed into being different but being different does not make us special. We can take steps forward into the right direction but those steps may not provide a real competitive advantage but a temporal one. Implementing a new feature is a temporal advantage. It’s cool. You workedRead More→