Founders often start a business without understanding their profit model. People are more likely to fail because they only think, “I have to work!” and don’t truly grasp how and why they can make money from it. They don’t understand the concept of capital, meaning the basic funds, nor do they understand the founder’s equity. They have heard the terms often but don’t really know their meaning or importance. They don’t recognize it, although they may have heard of it a lot. You start a business and partner with others without knowing whether your return is the reward for taking risks, giving up current interests, or sacrificing competitors. Understanding this is a fundamental part of entrepreneurship. Yet, in reality, they run their business without considering these issues simply because they need to work and can do so at the moment. - Joseph’s “just my thoughts”
The reorientation and expansion of a business should be planned and decided in terms of customer synergies, not company synergies. It may be more successful to offer a customer who buys apple jam an extra slice of bread to spread it on than to provide a customer who buys apple jam an extra jar of peach jam. It's easier for the jam seller to give away an extra jar of jam, but for the customer, the bread is more valuable than the jam. - Joseph’s “just my thoughts”