BC ECONOMY
Saved by @jacobhtml

1/ Unit economic for founders thread.

Despite being a founder and a student of the subject, I missed out on a key point growing up.

Length of relationship with your customers, order frequency, product usage and utility matter.

They didn't teach me this in business school.

 2/ Structured right, products used daily vs weekly vs monthly vs yearly lead to different profitability and scalability paths.

Quiz. Which business would you pick?

a) Enterprise software - US$ 250k one time license
b) Enterprise software - US$ 30k/month recurring subscription
3/ Sound's obvious? Which one did you pick?

Twice in my life I picked A. They were both great businesses, but they didn't compare to B. Especially in the long run.

Looking back, with hindsight, I know I should have picked B.

Why?
4/ Bringing in customers is hard.

When those customers leave after a few orders, your investment in that relationship is written off.

But it is not just about the relationship or investment. It is also about scale.

What are the easiest ways to scale a business?
5/ Think about it?

a) Get more customers - acquire
b) Get existing customers to order again - retain
c) Increase order size - up sell
d) Increase order frequency - cross sell / new use case
e) Get existing customers to get you new customers - referral

(b) to (e) are free.
6/ This links back to Life time value (LTV) of a customer. LTV is a function of:

a) Length of relationship
b) Order frequency
c) Order Size
d) Contribution Margin
e) Retention rates

Crude approximation but it makes the point we want to make. Increase value by increasing these.
7/ How much of a difference can it make?

It takes 8 to 12 years to get a business to a point where it pays off for the founders. Given a choice of four different businesses which one would you pick?

a) FTC
b) Maya
c) Produce A
d) Product B
8/ (c) and (d) above are the same business. With one crucial difference.

(c) turns off customers because it delivers late with hit or miss product quality and has a terrible customer experience.

(d) is fanatical about customer service and experience.

Compare that with (a), (b)
9/ (a) has the highest price point, highest margins and a respectable LTV/CAC ratio but can only sell its product once or twice to customers.

In the long run it loses out to (d). If LTV was representative of franchise value, (d) would be 6 times more valuable than (a)
10/ It would take you the same time to build both businesses. The same time to get to an exit.

(d) would be more operationally complex because of logistic, so perhaps more headaches. Also more points of failure.

But financially speaking, which one would you rather build?
11/ They didn't teach this at business school. 20 years to pick up this lesson in real life. I wish someone sat me down and explained this 30 years ago.

Order frequency and customer shelf life matters. Pick ideas where customers buy more frequently over ideas where they buy once
12/ From @HabibUniversity Tech Management and Entrepreneurship course (MGMT 301), lecture four, unit economics for founders and building businesses that scale.

Full lecture here
https://t.co/eZGtwCLbOI

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the QFS has obtained account information from every Tier 1 bank account in every bank in the world that is linked to the SWIFT transfer system./3

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** MMT is the new supply-side economics
Forty years ago, some economists started from an uncontroversial (but important) result: a lower tax rate raises the tax base, so revenues won't fall as much. But then they ran with it, predicting tax rate cuts could raise revenues.

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The 80s supply-siders went to the limit and came up with a motto: lower taxes will lower deficits as a norm, not an exception. Many economists shouted this was backwards. It was an implausible limit case. Textbooks called them "charlatans and cranks" or "silly".
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In 80s debates, supply-siders would often fall back to "you don't understand me", repeating "Laffer curve!" endlessly, or stating vacuous accounting identities about how the government collect taxes. Their extreme prediction was repeatedly proven wrong by theory and data.
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But they had popular hero figures (Laffer, Moore), and an eager political audience that would use any argument to cut taxes. Eventually, they inspired new good research, and helped in swinging the pendulum of policy debates to include some valid supply considerations.
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My friend @itsafronomics wanted to know the breakdown of student debt by income, so I pulled data from the SCF.

Student debt is more concentrated amongst high earners, but disproportionately amongst Black borrowers. The plot below plots the average within Income Quartiles.
1/n


But those are the averages. What's the share that's above 10k? (This is the Biden current cutoff for debt forgiveness, so a useful benchmark).

For comparison, 20% of white Americans have student debt, and 31% of Black Americans.


Let's contrast that with say, above 20k. I was surprised at how high the share remains.


When we get to 50k of student debt, or more, we see it's only about 5% of the US, and around 8% of Black Americans. Strikingly, it's a huge share of high income Black Americans (this is a known fact in the education literature, I believe).


So what does this look like put together? Overall, we see a higher share of Americans with debt above 10k, and 20k. We would cover a decent amount with 10k, but miss Black Americans especially.
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5 star RSI Strategy by @VishalMalkan

Unconventional approach of 60-40 RSI and range shift concept.

According to him,
whenever the market is bearish,
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and whenever in a bullish trend,
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Like & Retweet for Maximum Reach.

So, instead of the 70-30 Relative Strength Index,
we will use the 60-40 range for the RSI indicator for this strategy.

When the
Monthly and Weekly RSI>60,
& when the RSI takes support at 40 in the daily chart,
it may bounce back and most probably it will not go below 40.

If a bullish candle is formed at the 40 RSI level,
the prices may bounce back, and one can enter the stock.

The stoploss can be placed at the low of that bullish candlestick,
and the target can be the 60 RSI level.

When the
Monthly and Weekly RSI<40,
& when the RSI takes resistance at 60 in the daily chart,
it may bounce back and most probably it will not go above 60

If a bearish candle is formed at the 60 RSI level,
the prices may bounce back from there, & 1 can enter the stock 4 shorting

The stoploss can be placed at the high of that bearish candlestick, and the target can be the 40 RSI levels.

#banknifty

This range shift concept can be applied in any timeframe,
whether intraday, daily,weekly, etc.
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