4 Important business principles from MIT Monk learned in 20 years

Nation building via learning and being the best in business

This can help numerous would be, entrep wannabees:

Most of what is being written is learn to avoid so that we 

Principle1: Avoiding Ghost Towns Principle 2: The Passion Dilemma

Principle3: Understanding Business DNA

Principle 4: Building High Walls

Principle1: Avoiding Ghost Towns

This challenge is the result of the University system. We live a real life of divergence but the University is convergence. Questions are preformed and no one dare question the question. Sometimes we solve problems no one needs. And there companies financed by VCs, 48% of them dont return money. So many put up restaurants in ghost town..

This is exemplefied by a wall to where we bike frequesntly built in the middle of nowhere and surely this is a failure. This often happens.

Principle 2: The Passion Dilemma

Follow your passion and you dont to have to work the rest of your life. So says Steve Jobs to follow passion but that does not necessarily work. Follow your effort

For passion its mostly about art. And there are numerous artists painters and actors. And since there are many the value of the talent goes down.

Principle3: Understanding Business DNA

The business DNA:

1 The product they physical goods. The cash trap You need plenty of cash. Supply chain in

investment

2 The software use massive amount of cash for the development. Ai helps this. Build the MVP

before taking massive investment. Convince yourself that you have buyers.

3. The service use of time and talent New product types and can run without you

4. Marketplace (trading ) Hyperfocus on one niche

5 Media you are selling attention. You have to keep on running. Build direct connections vs

having yourself on a platform

6. Capital DNA - renting money: banks, hedge funds. Trap: one bad investment. can wipe you

out

7. Asset DNA investing requires massive amount of cash.

Be sure you and your busienss DNA match. If the business is the right vehicle for you

Principle 4: Building High Walls the walls, the moats you need to build so that the competition cant get into you. The franchise

1. Economies of scale barrier. If you have large purchase

2. Network - every new user add value to existing network. Like VISA - plenty of merchants and

user Even if I introduce of new card (but zero user and merchant)

3. Dominate a niche rather than entire ecosystem.