abhiyerra&co

Owning a small business has a pitfall that where you start and where the company starts are blurred. You take money out whenever you want and treat the company as a personal bank. I think this has caused misaligned incentives and coming to the conclusion that it be avoided. When you are the owner of […]

For a business cash is king. This has been a truism and it is definitely something that I have paid little thought to. However, how money comes in and how it goes out to vendors/employees plays a huge role. Unfortunately, I have come more and more to the conclusion that getting paid upfront for a […]

Product businesses are so hot right now. There is a literal app for every single thing. Product companies are great because margins are high, custom work is low and scaling that is relatively easy. Unfortunately, with opsZero I’m in the service game. Services are interesting because after doing services for 20+ companies in the last […]

I’ve been trying to figure out a better way to read. I treat all reading as a one way door. I expect to come out the other side a changed man. However, most books are two way doors. You go in have a drink at the bar, maybe a short conversation with the author and […]

Loss aversion is strong. Prospect Theory states we see losses as worst than equal amounts of gains. It is interesting that one of the things I’ve been struggling with is looking at my revenue and profit in terms of my salary as an engineer back when I had a full time job. My goal is […]

PV = FV/(1 + r)^t FV= PV(1+r)^t The Future Value (FV) of Cash is what needs to be optimized. The Future Value when considering it as an investment is the rate of return based on r. If you invest and r is high then you can likely spend more money than if r is low. […]

Any company can only be good at two of these things and should really optimize the efforts on two. As a company can’t do it all and can really only focus its resources on optimizing a few pieces. Examples: Coca Cola. Sales, Marketing. They are selling sugar water no new value is being created or […]

I think we are all wired for risk aversions. Daniel Kahneman got a Nobel Prize on Prospect Theory for this. But we are all averse to losses it is just the way we are wired. Why gain something more? This I believe is a condition of our view that loss is something bad and gaining […]