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Tren Griffin @trengriffin
, 3 tweets, 2 min read Read on Twitter
A subscription pricing model is not a substitute for product market fit. A pricing model is not a business model. Blue Apron is a poster child for those points. Product market fit includes a sustainable business model with barriers to competition. bloomberg.com/news/articles/…
High CAC means impacts of churn = brutal! Customers fell 24% in the 2nd quarter. Average order value dipped from a year earlier to $57.34. Also: 25% decrease in revenue for the period ending June 30. $179.6M in sales, missing the lowest analyst estimate; loss widened to $32.8M.
"The meal-kit business has been besieged by competition — more than 150 meal-kit companies show." marketwatch.com/story/blue-apr… Even the coyote who runs through my yard sometimes is selling meal kits to his friends and family. No barriers to entry. This article headline = bonkers!
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More from @trengriffin see all

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"According to the survey results, the median pay for full-time writers was $20,300 in 2017, and that number decreased to $6,080 when part-time writers were considered. The latter figure reflects a 42 percent drop since 2009, when the median was $10,500."
In my blog post on writing books I wrote: "6. Don’t expect to earn more than the minimum wage and be thrilled if you earn more." google.com/amp/s/25iq.com…
"In Mémoires (1759), Voltaire recalled how in his youth he had come across so many writers who were “penniless and held in contempt” that “he had decided not to add to their number.” laphamsquarterly.org/luck/voltaires… "Thanks to his fortune he was free to pursue his writerly life."
Read 3 tweets
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"Companies can lose a lot of money in their early years but be wonderful businesses if they are acquiring customers with long lives and strong variable margins."

But some businesses just do the losing money part. A critical skill is knowing the difference between the two types.
Customer-based corporate valuation (CBCV) = valuing a business on a "bottoms up" basis by valuing the customers. In a subscription business especially, this is an essential process if you want to understand if real value is being created despite a lack of current GAAP earnings.
"CBCV isn’t about being profitable from day one. It’s about variable profitability in net present value terms (while still being mindful of fixed cost overhead of course!)" Determining whether a specific business is a delicious cheesecake or a turd requires detective work.
Read 6 tweets
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“The Fasten Seat Belt sign is now illuminated. If you haven’t already done so, please check your cash and cash equivalent balances. Please lower your burn rate and make sure your defensive investments are in their full upright position.”
“If you find yourself needing an emergency exit from illiquid investments, please read carefully the special instructions card. Cash is more king than ever. If you can’t handle the haircut you are about to experience, please ask someone to do the selling to raise cash for you.”
“We remind you this remains an uncertain and no sympathy correction. No one knows anything for sure as is usual. Crying and whining is prohibited, including in the lavatories. Tampering with, disabling or destroying your brokerage statements is pointless and prohibited by law.”
Read 5 tweets

Related threads

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"I'm afraid to discuss my business ideas because I'm afraid someone will steal them. What do I do, Shadeed?"

Good question. Here are 7 ways that you can protect your #business ideas.

Thread

#smallbusiness #startup #smb
Protect your business idea #1
Non-disclosure agreements. (NDA)

What is a NDA?

A legally enforceable contract that binds confidentiality
between a person holding information with the person who
is receiving it.

You sign NDA before you tell the details.
Protect your Business Ideas: #2
Trademark your Name

What is a trademark, Shadeed?
A symbol or words that are legally filed to represent a product or company.

Where do I file my trademark?
Apply online here: bit.ly/2owQZB7

#business101
Read 10 tweets
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Business owners need to be problem-solvers

Every biz owner needs to think about the problems NOT being solved in their market

- What can you do BETTER? DIFFERENT?

- What's MISSING?

- What do people COMPLAIN about?
Whenever people say, "I wish...." they're talking about a market OPPORTUNITY

"I wish cabs were cheaper and easier to use" ==> Uber

"I wish I didn't have to go all the way to the video store" => Netflix

"I wish it didn't take me so long to cook" ==> Blue Apron
A few more...

"I wish it wasn't so hard to find a quality woman after being divorced"

"I wish I could make $10,000 month online from any location"

"I wish I could get a 6-pack without eating boring foods"
Read 4 tweets
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BUSINESS LESSONS FROM SCRABBLE | I won a game of #Scrabble over the weekend. I was down by 30 points, but played the word, logjam, on triple word and double letter spots to earn 50 points. #Business #Entrepreneurship
Another day, I was leading in a game of Ludo and had 2 seeds left. My boss was lagging behind, but then he won by pecking my 2 seeds before I could get home. Isn't that like life? Those ahead of you don't always win and vice versa.
My Scrabble game taught me a few lessons about business:
Read 10 tweets
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Time for some #business motivational tips from the 1920s. They certainly got to the point back then...
1920s business tip #1: don't hit the client!
1920s #business tip #2: nobody ever got rich by writing cheques
Read 12 tweets
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1/
Great tech companies:

1: First build the great #product.
2: Through that, they establish the best distribution.
3: Build superior traction.
4: Raise higher resources.

bit.ly/2JHDDdn

#distribution #Sales #technologytrends #startups #venturecapital
2/
5: Create/acquire the newer products.
6: Continue growth momentum by putting those new products through the distribution pipes already created.
7: Grow to monstrous size.

#distribution #Sales #technologytrends #startups #venturecapital
3/
The market cap of the top 5 S&P 500 companies (GAFAM) = $4 trillion
The market cap of the bottom 282 S&P 500 = $4 trillion.

#distribution #Sales #technologytrends #startups #venturecapital
Read 5 tweets
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1) On Date 06-06-2018 by train no 12246 YPR-HWH duronto exp. A Couple was traveling with an ailing #Child #who_was_in_oxygen_support_through_cylinders . But have got only 2 cylinders which will be empty on or before Vijayawada

#IndiaPositive
@PiyushGoyal @RailMinIndia
2) #Mr_Mihir #TTE_BZA of the train called to Control and informed that they have to arrange it at any cost.And the controllers assured that they will provide it.

#IndiaPositive
@PiyushGoyalOffc
3) Then #Mr_Mihir called to #Mr_Jagga_Rao #CTI/BZA and he called to #ACM and chief Controller that the train shouldn't stopped anywhere and it should reach Vijayawada without any hustle.

#IndiaPositive
Read 7 tweets

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