Felix @Compoundingzero

There was an insolvent company in Singapore that you never would have expected. It was a company that processed enormous volume, and raised massive amounts of money (what one would call a unicorn these days) It had massive GMV that kept growing and kept flowing through it, but none of it could be kept by the company. The volume hid the only thing that matters: does the business transaction make you money? That company is called Honestbee. Like any startup, burning cash was the "norm" to acquire customers, so it did. Then came 2019, where the cost on each order compounded, resulting in them owing over $100 million Each metric that they were using to grow the business was vanity. You can't improve what you don't measure, and what you measure wrongly will only cripple you

Your company is worth more than gold if it has pricing power that never requires you to run a promotion or a discount, and the product itself appreciates day after day just by being on the shelf In China, there's a company that functions exactly like this. Its called Kweichow Moutai. It regulates the amount of product it releases so tightly that people hoard it and sell it in the secondary market for a price much higher than retail. It barely advertises, yet you see government officials having it on almost every meal table. The product that they sell (Hard Liquor), acts almost like an asset class instead of a drink. They let it do the talking They recognize that discounting is what one does only when pricing power is lost. And that the strongest brands engineer demand that outruns supply (consistently) instead

The reason why Grab was able to get Uber to leave the Southeast Asia market was because each new business segment that they launch is cheaper than the one before Grab pays to acquire their customer once (for the rides), which is the expensive part, then the customers continue using their app for the food, the parcels, and the payments. All free, without any additional customer acquisition cost because each business stacks on the previous one The ride-hailing customers it built, had the same core customers as the ones that are using the app for food, for delivering parcels, and for payments and loans By 2018, Grab's hyper local strategy wiped Uber out completely, eventually selling its Southeast Asia's business to Grab and taking a small stake in Grab instead. Are you building your business on top of customers which you've already acquired?

A $4.99 rotiserrie chicken at a loss is the greatest bargain i can get for my post-gym protein. How is Costco doing so darn amazingly well when they are losing money on all their groceries? That's because groceries were never the main product (despite being a grocery chain), the membership (where they earn a 100% margin on) is That hot dog that you've paid $1.50 for for 40 years was never meant to earn a single cent, it was meant to justify the membership plan

Have you ever questioned the pricing of what was offered to you? No, not just "because it was expensive" but because the other product being offered as alternative does not make sense As humans, we tend to subconsciously judge something by comparison be it our kids' grades, our friends' material possessions, or just the price we pay on something. All it takes to increase the perceived value of your main offering, is to drop 1 horribly valued offering next to your main product offering. Now, the premium looks obvious because of the reframing If you read newspapers often, this should sound very familiar. The Economist offered their digital-only option at $59, their print only option at $125, and their print + digital at $125. Researchers have proven that once you remove that $125 print-only decoy, most people flipped back to the cheapest option ($59 digital only option) Your customers always want value, not cheap. Help them to get value by comparing

One of the biggest company in Singapore started a E-commerce war with money they got from in-game skins (yes, i'm talking about League of Legends and First Person Shooters) This resulted in a saga that unfolded itself when Alibaba "exited" the market. SEA Group is the company in question. They utilized their gaming cash cow business to cover their ecommerce business' loss, long enough to wipe the floor clean If you ever grew up in the Singapore neighbourhoods, the name "Garena" should be really familiar to you (its the gaming arm of SEA group). Their games were generating over a billion downloads, and were purely monetizing with skins. That money went to ecommerce (Shopee), and now, the ecommerce war chest is feeding fintech (SeaMoney) The lesson here: cash is king. The healthiest growth is never funded by investors, but the cash generated INTERNALLY

Most business owners who are struggling think of their business in first order. Stop that, because the real money to be made is in the second item that your customers have (no choice but) to buy from you Your first sale should always focus on customer acquisition. Sometimes even below cost. We call this the "loss leader", and this is what sets apart a smart owner and someone who is just building a high paying job for himself (for a short period of time) The reason HP succeeded was because it was selling their ink printers below manufacturing cost for YEARS whilst charging the ink cartriges at a premium (why do i know this? because they got a 80%+ fat margin from this) If your "business" is reliant on your first sale, get ready for a series of goodbyes ~

This is how to tell apart a good company from a bad one: if you've got the ability to get a "interest-free loan" from your customers No, i don't mean a real loan literally. I meant the ability to collect money from your customers now, and then, only pay your suppliers 30-60 days down the road. That 30-60 days of money sitting in your account is called the "float", and if you're smart enough, you can use it to fund your growth The geeks auditing your financials call this the cash conversion cycle, and Amazon ran a negative one for years (the lower the CCC, the longer you can hold your float). A similar company in Singapore (Sheng Shiong), does the same The next time you're thinking of how to grow your business, think about how you can extend your float so it can fund your growth

The insurance business was never about selling you a policy, its in the business to hold your money for years (for free and some even getting "paid" to hold your money) before it even pays a claim Just imagine. You pay a premium today and claims happen years later. This "gap" in between is usually called the float, where they get to invest YOUR money, and keep every single CENT of it. In shorts, its technically a better business than banks because its a loan at a negative interest rate. The best insurance companies are able to manage their risk payouts well, allowing them to get "paid" to hold your money, because you eventually won't claim for that insurance event (that didn't happen). Just look at Berkshire. It has US$160 billion float that they don't own, they don't need to pay interest on, and claims which they likely won't need to repay. Let's not even talk about Warren Buffet's return, just imagine a minimum of 9% on that float... that's massive! The same goes for Great Eastern The only question left to ask in YOUR business is: how long can you hold ur customer's cash before you have to return it?

@AlexHormozi @grok does sacrifice for a long time guarantee success?

@AlexHormozi @grok how to be crazy?

@russellbrunson @grok what are some tricks that will help someone to take action?

@Codie_Sanchez Sometimes big minds and big thinking is not practical (like mine) 🙃

@russellbrunson Yeapppppp Rome wasn't built in a day

@Codie_Sanchez You've got to get the right people on the bus, not just make sure it's steering in the right direction. That's the hardest hardest part of building something, not the later

@russellbrunson Funny how marketing is one of the most important topics in business but not a single school teaches it well — or does anyone have a different experience?

Gosh I've lost count of how many times he has Taco-ed. The whole oil sector is massively manipulated right now. Oil company stocks are depressed but if you look at derivative hedges they are getting massive losses from hedging — which are clear signs of massive earnings increase for the coming earnings quarter

@thejustinwelsh Some uncomfortable things will just land you in the wrong places tho 🙃 ie prison 😂

@russellbrunson This is a really bad sign. Gonna be the biggest bubble in history The sad thing is the adoption from the ground is incredibly slow, and it can only be that way. The people who have distribution can't implement. The people who can implement don't have distribution 🙃

@girdley My favourite character from cartoon network