The tools used by economists to analyze business firms are too abstract and speculative to offer any guidance to entrepreneurs and managers in their constant struggle to bring novel products to consumers at low cost.
Sentiment: NEGATIVE
What most entrepreneurs don't understand is that it isn't the economy that bursts a bubble, but investor psychology.
Entrepreneurs can't forecast accurately, because they are trying something fundamentally new. So they will often be laughably behind plan - and on the brink of success.
Entrepreneurs always begin the journey believing that they have the next big idea. They dream of the fame and fortune that awaits them if only they had the funding to pursue it. But the reality is that as the product is built and shared with customers, flaws in their concept are discovered that - if not overcome - will kill the business.
People are in such a hurry to launch their product or business that they seldom look at marketing from a bird's eye view and they don't create a systematic plan.
Every time we bring someone in we ensure that they are a strategic thinker, but even more important that they understand that if the products aren't successful and the products don't sell that there won't be anything to strategize about.
On the consumer level, the products developed by entrepreneurs help to provide more and better options that make life easier and more enjoyable in the everyday lives of the public.
People must be realistic when evaluating their business.
Companies that get confused, that think their goal is revenue or stock price or something. You have to focus on the things that lead to those.
Most investors give too much credence to the theory that prices are rational; they presume that a market collapse must have been justified by serious economic trouble.
When you build relationships with entrepreneurs, they're not trying to optimize on price.