Pick a Business Model With Leverage

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