Author"Luni"

CAGR = RRI-1

Compounded annual growth rate (CAGR) is a very common metric when looking at how fast a startup is growing. Unfortunately neither Excel nor Google has a formula named CAGR. Instead, you need to use the RRI function. When you do this, there is one pitfall to avoid. There are three parameters to RRI. The first is the number of values. The second is the starting value. The third is the ending value...

Why Long-Term Thinking Wins

I teach the important skill of Seeing the Future to both entrepreneurs and investors, but before stumbling on this conversation, I had never before seen this framework of success in startups based on “the long term view”. By necessity, founders are rooted in the “here and now” mental framework required for launching a new startup. But great founders do something different at the same...

Running out of money (and how to stop it)

The biggest reason startups fail is that they run out of money. No money, no employees, no vendors, no way to serve customers, game over. Pretty obvious, but there are many different ways that startups can run out of money, and not all seem like failure: No customers The most obvious path to running out of money is lack of customers. This is the classic path we talk about a lot in...

Top blog posts for 2021

One, and only one of my blog posts is viewed every day. Seven days per week. I’ve never figured out why. It’s viewed more than the home page, by almost a factor of two. Here are my most popular blog posts in 2021, as measured by page views. #1 – Selling the first telephoneHow do you sell one telephone, as one telephone alone has no value. #2 – How many entrepreneurs are...

End of Year Clean Ups (a.k.a. too many Google Contacts)

I’ve been on Gmail since it launched back in 2004 and thanks to Google automatically collecting email addresses into Google Contacts, I have over 8,000 contacts in that service. Trouble is, 8,000 entries in my iPhone’s Address Book makes it next to unusable, as very few people I ever email show up. I searched the internet for a tool that would clean up by Google Contacts, deleting all...

Covid is just like the flu

Two years into this global pandemic, many misguided people are still comparing Covid-19 to influenza.

1,600 death in a week in 2018 was tragic, but those influenza spikes are barely visible when compared to the tragic scale of Covid-19, and even more so given a simple cloth mask and vaccines that prevent most deaths.

The (coming) East Africa Federation

I’m publicly bullish on Africa (1, 2, and 3). I foresee the continent being the next big economic growth story after the Asian Tigers, China, and India. On the path are some major continental-scale efforts, including the potential creation of the East African Federation, a political union of the existing East Africa Community trading group: Kenya, Uganda, Tanzania, Rwanda, Burundi, and...

Startups have leaky pipes

I’ve been teaching first time entrepreneurs about the importance of accounting and financial management for the last decade, and frustrated that whole time that most don’t grok the importance until they hit a financial crisis in their own startup. So let’s try something new… and talk about leaky pipes. The model/analogy to think about is a building, with a water tank on...

Future Dollars (F$)

Last week I wrote about the ancient system of Bills of Exchange and how useful they were for sellers to get paid sooner than 30, 60, or 90 days after the sale. A 21st Century systemic solution to replicate these benefits would be a marketplace that sells and trades Future Dollars (denoted as F$). A future dollar is a promise to deliver a real dollar ($) in a specific number of days. With this...

Fast-growing Elephant (Startups)

Most startup investors chase mythical unicorns, ignoring the real, fast-growing elephants. What do I mean by fast-growing? 50%-100% year over year, with an occasional 3x or 5x or 9x growth spurt to kick that off: Above are four such companies, all fledglings, all now part of Africa Eats‘ portfolio. Four companies that earn over $1 million per year, which solve real problems, and with that...

Books

The Next StepThe Next StepThe Next StepThe Next Step The Next StepThe Next StepThe Next StepThe Next Step

Podcast

Fledge

Recent blog posts

Categories

Archives