Pick a Business Model With Leverage

Naval

• Episode: Pick a Business Model With Leverage
• Website: Naval
• Feed URL: https://naval.libsyn.com/rss
• Duration: 00:05:47
• Published: 2019-04-22 15:11

Ideally, you should pick a business model with network effects, low marginal costs and scale economies.

• Scale economies: the more you produce, the cheaper it gets 0:00

• Zero marginal cost of reproduction: producing more is free 0:51

• Network effects: value grows as the square of the customers 1:34

• Network effect businesses are natural monopolies 2:26

• In a network effect, each new user adds value to the existing users 3:06

• Zero marginal cost businesses can pivot into network effect businesses 5:01

Transcript: http://nav.al/business-models