Pick a Business Model With Leverage
Ideally, you should pick a business model with network effects, low marginal costs and scale economies.
\u2022\xa0Scale economies: the more you produce, the cheaper it gets 0:00
\u2022\xa0Zero marginal cost of reproduction: producing more is free 0:51
\u2022\xa0Network effects: value grows as the square of the customers 1:34
\u2022\xa0Network effect businesses are natural monopolies 2:26
\u2022\xa0In a network effect, each new user adds value to the existing users 3:06
\u2022\xa0Zero marginal cost businesses can pivot into network effect businesses 5:01
Transcript: http://nav.al/business-models