Net Present Value (NPV) is a key tool for evaluating project profitability. NPV calculates the present value of a series of future cash flows, discounted by time and risk. If the total is positive, the project is financially viable; if negative, it’s not worth pursuing. This chapter breaks down the logic, math, and real-world implications of NPV to help product leaders make smarter capital allocation decisions.
Two critical dimensions are often overlooked in product business models: time and risk. These shape the opportunity cost of capital - the value of the best alternative forgone. We break down simple vs. compound interest, explain why investors demand a risk premium, and show how timing and uncertainty affect real-world investment choices. Up next: Net Present Value and strategic capital use.
Blending Goods and Services Economics explores the unit economics behind smart tangibles—physical products enhanced by software, sensors, and connectivity. This series, part of the Smart Tangibles book, dives into production economics, cost accounting, and managerial strategies for building viable, scalable business models. Learn how companies like Apple and Tesla balance costs, value, and risk to create powerful economic engines.
Why did the Tech sector, until recently fighting tooth and nail for every candidate, start firing droves of employees? As 2022 rolls to...
This article analyzes the potential risk and profitability of BNPL - Buy Now, Pay Later - lending, using static and probabilistic stress test approach.
An English version of this post can be found here. כמנהלים, עלינו לקבל הכרעה על מהלכים אסטרטגיים. נגדיר מהלך אסטרטגי ככזה שיש בכוחו...
כל הערכת שווי - וואלואציה - היא תלויית אסטרטגיה עסקית ואסטרטגיית מימון. כיצד השווי תלוי אסטרטגיה, ולהיפך, כיצד תשפיע אסטרטגיית מימון חדשה על
Different financing strategies call for different valuations, necessitate different financial plans.
A tale of overzealous audacity and a vision turned sour How far can "fake it till you make it" culture go, and when must it stop? Some...
Does investors' shock verdict mean Wix is to shift its strategy from growth to profitability?
5-step process to assess biz opportunities: market, competitors, UVP, GTM, profit—ending in ROI-based go/no-go decision.
Product Selection and Company Strategy We all know better than ask this loaded question (I surely hope so!). Sometimes, though, this is...
In this article, I discuss the process of building the financial plan for your startup.
Assess your startup risk adjusted cashflows to anticipate operational deficit, reserve attrition, and company distress.
- למדו כמה אתם צריכים וכמה תוכלו - לגייס. פנו למשקיעים בשלים - ומעוניינים.
Your growth model is crucial for SaaS fundraising
Time is the most limited resource for founders, before raising their first significant round. It is important to take it into account.
Price dynamically to skim the market