Business book recommend: “Zero to One” by Peter Thiel

Described by some as ‘the best book on starting a business’, the cover reads:

Doing what someone else already knows how to do takes the world from 1 to n, adding more of something familiar. But when you do something new, you go from 0 to 1.

Definitely a philosophy we espouse here at ElementsCPA working with entrepreneurs – The way we put it: “There are as many business models as there are entrepreneurs."

Check out this read if you’re looking for practical insights or fresh inspiration!

This graphic highlights a particular approach to crafting your business –

Instead of starting with “what we can do” and trying to sell that …

It focuses on starting with “how we hope to make a difference” and from there, backing into:

• Playing field

• Value prop/ Competitive advantage

• Capabilities needed

• Systems required

The instinct for many business owners is to put the cart before the horse, but this graphic gets right how to reverse engineer a company that flourishes in the marketplace.

Really enjoyed this week’s e-newsletter installment from David Kuzma, CPFA at Aquilo Wealth Advisors – It included reflections on the need for entrepreneurs to protect their health along with practical ways to accomplish –>

One of the ones I really liked:

Time-Block Non-Negotiable Recovery Windows – Treat recovery with the same sanctity as board meetings. Schedule three types weekly:

Micro-recovery: 10-minute breathing exercises between meetings Meso-recovery: 90-minute blocks at least twice weekly for exercise or complete disconnection Macro-recovery: Quarterly 3-5 day periods with zero business communication

Protect these blocks as fiercely as you’d protect a meeting with your largest client. These are targets that you can build up to. Start with something small and implement these over time."

If you’d like to subscribe to his e-newsletter or learn more about his company, just visit Aquilo Wealth Advisors or reach out and we’re happy to make an introduction!

TIP: For most service business, the bottom 5-10% of your customers are not ‘breakeven’.

Illustrated in what’s known as the ‘whale curve’, 80% of customers generate around 170% of your profit, while the last 20% reduce profit to 100%.

Knowing this can help you pursue changes to your Business and Profit Model that’ll help strengthen its position and brighten its future.

We were recently reminded of the mind-expanding, 6-minute video, “I, Pencil: The Movie”, based on the essay by Leonard E. Read.

From the opening frames: “We are perishing for want of wonder, not for want of wonders." - G.K. Chesterton

If you haven’t seen it before, or it’s been awhile, take a moment to appreciate the wonder of the pencil and what it signifies about modern commerce & human interaction:

I recently heard a small business owner share the insight quoted below …

Is it time for you to pull aside and look at the big picture?

Our mission here at ElementsCPA is to help you design your business & your finances

A business’ cost structure as it scales typically mirrors more stair steps than upward sloping line

If you’re not deliberate, you could get caught with a cost structure of one stair matched with the revenue structure of the previous stair 😕

So decide on your optimal size & don’t get stuck between steps