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I Don't Like Investing In These Types of Businesses...

Name: I Don't Like Investing In These Types of Businesses...
Uploaded: 2024-08-01T15:00:27+00:00
Duration: 46 s
Channel: Shanli Liu, CPA, CTP
Description: In this advisory monologue, the speaker emphasizes that sustainable enterprise value comes from businesses that generate repeat purchases or recurring…

1 Aug 2024 · 1 min

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In this advisory monologue, the speaker emphasizes that sustainable enterprise value comes from businesses that generate repeat purchases or recurring revenue. He argues that focusing on rapid sales acquisition without a solid product, strong offer, and efficient delivery leads to volatility, especially when advertising campaigns falter, resulting in high fixed costs and potential losses. The speaker advises entrepreneurs to first ensure product-market fit, customer retention, and operational efficiency before scaling marketing, using acquisition as a tool to accelerate growth rather than as the primary engine.

Chapters

You just have to find something that people don't stop buying. I have zero interest in businesses where someone buys once and then doesn't buy again. I just don't care. That's literally what creates enterprise value. It's what makes your life better. It's more profitable. It's just hard because everyone's impatient. They start making sales and then, oh, I want to get to this number a month. I want to get this number a month. But like, they can't think 3 steps forward because then all you're doing is you just have to keep scaling acquisition, scaling acquisition. But if you keep scaling acquisition, you will have a day where your ads don't work. You will have a day where you have a campaign that doesn't work well, and then all of a sudden your business becomes super volatile. But then you've gotten your fixed costs so high, so then you just take no profit and then Sometimes you lose money and it's just a terrible existence. So it's spending more time on the front end to make sure the product's right, that people don't leave, nail the offer and the delivery so it's efficient for you because basically it should keep growing on its own if it's built right. The only reason we bring the marketing in after that is to just do it faster.