Business Strategy Fundamentals

The headline that caught my eye this week was “Why the Draghi Report on EU Markets Matters.” Here's my take:   European productivity growth has lagged that in the United States over the past 15 years, and higher energy prices (following Russia's invasion of Ukraine) and complexities involving China as an export market have exacerbated Europe's economic challenges. On my recent trip to Europe, these issues (along with the U.S. election) were top of mind for business leaders. I have long admired Mario Draghi, whose career has spanned government, business, and academia, and who approaches complex issues with rigor and pragmatism. Draghi recently authored a lengthy report on how to boost productivity in Europe. His diagnosis: the EU is falling behind in the digital revolution, missing the AI wave, and struggling with fragmented capital markets that push promising startups toward US venture capital. The proposed solution — €800 billion in public investment, a stronger, centralized securities regulator, and a shift in attitudes on anti-trust policy — makes eminent sense and represents the type of boldness required. But implementing these reforms would require significant treaty changes and convincing member states to cede control of their financial markets to a European authority.   The reality is that while Europe needs this "radical change," the political appetite for such substantial reform is currently limited. But Europe can't escape its critical choice: maintain the status quo, with subdued growth prospects, or overcome political hurdles to forge a more competitive future. 

I track a cohort of about 40 cannabis companies throughout the United States that are "working”. What I’ve noticed? The top companies are all doing the same thing in about 5 or different verticals. Here's the breakdown: 1. Private Not Public Most successful cannabis companies are private. They avoid the scrutiny and regulation of public markets. They maintain control and flexibility. In cannabis, being private is the way to go. 2. They Generate Revenue and Real Cash Flow All the successful companies are either generating real cash flow or are very close. Why? • They focus on profitability • They balance growth and cash flow Cash flow is the lifeblood of a company. These companies understand this. 3. They Limit Outside Capital These companies limit their reliance on outside capital. Instead they: • Use internal resources and profits • Avoid dilution of ownership Capital is a tool, not a crutch. 4. They Only Take Non-controlling and Non-punitive Capital If they take outside capital, it's always non-controlling and non-punitive. They: • Maintain control • Structure debt to be serviceable Smart capital doesn't control, it enables. 5. Profitability Over Capital Dependence They focus on lean operations They prioritize net profits And they’ve realized one crucial thing: Profitability is more important than high capital. 6. Excellence in One or Two Areas The top companies aren’t a jack of all trades. They excel in one or two things and stick to them. • They know their strengths • They focus their resources on what they do best They have dominated their niche. 7. Maintain Privacy These guys don’t disclose much. They keep their strategies and finances confidential. They control their narrative. In the cannabis industry, silence is golden. This is what I've seen the top companies do. Do with this info what you will. Want more content like this? Hit that follow and 🛎️ to get notified when I post.

Saudi Arabia Is Reshaping the Rare-Earth Supply Chain: From Raw Material Supplier to a Global Processing Power 🔅 During the Crown Prince’s recent visit to Washington, attention was fixed on F‑35 discussions and the “Major Non‑NATO Ally” designation. 🔸 But beneath the headlines, a far more consequential shift occurred: Saudi Arabia signed an agreement that positions it at the heart of the rare-earth supply chain. 🔅 The Unseen Move: Processing, Not Just Mining 🔸 Ma’aden and MP Materials will establish a rare-earth separation and processing facility inside the Kingdom. ▪️ This type of facility has historically been concentrated in China — and is now coming to Riyadh under a Saudi-American industrial partnership. ▪️ The project aims to produce permanent magnets essential to defense, EVs, and advanced energy systems. 🔅 Strategic Positioning: The Kingdom Didn’t Chase the Deal — It Set the Terms 🔸 This agreement reflects years of quiet leverage-building, not a sudden opportunity: ▪️ Linking extraction to processing: No large-scale mining without full downstream localization. ▪️ Turning stability into a strategic asset: Amid global supply chain volatility, Saudi Arabia offered predictability. ▪️ Infrastructure first, investment second: Industrial zones like Ras Al‑Khair and the NIDLP backbone were already in place. ▪️ Geographic leverage: Bridging African and Asian resources with Eastern and Western markets. This wasn’t a late entry — it was a calculated delay. A form of sovereign leverage to secure downstream control. 🔅 Who Benefits? Not Just Ma’aden — An Entire Ecosystem Emerges This shift unlocks a wider investment opportunity: ▪️ Specialized logistics for critical materials ▪️ Industrial SMEs producing inputs and recycling metals ▪️ Localized R&D and technical training ▪️ Clean energy for high-load industrial zones ▪️ Green infrastructure and environmental services Those who understand the secondary layers of this transformation are already a decade ahead. 🔅 From Extraction to Pricing Power: Saudi Arabia’s New Industrial Trajectory With China dominating 85% of rare-earth processing and the West seeking diversification, Saudi Arabia is fast becoming a pivotal anchor in the realignment of global supply chains. It’s not about replacing China — but about breaking the monopoly on processing, and shifting where value is created. 🔅 From the Periphery to the Center — Deliberately Saudi Arabia isn’t entering the industrial race. It’s redefining its role within it. From vertical growth in traditional sectors to horizontal influence across strategic value chains. This isn’t just about factories. It’s about shaping the economic geography of the 21st century.

To be successful in Q1 of 2025, as the Chief Executive focus on the following three key areas: 1. Agility and Adaptability: The market landscape is expected to remain unpredictable, with demand volatility continuing from 2024. CEOs must ensure their teams are equipped to adapt quickly to sudden changes. This involves refining demand generation strategies and building resilience to capture revenue growth opportunities. 2. Accurate Revenue Forecasting: Accurately forecasting revenue is crucial. CEOs should reassess revenue drivers, identify new opportunities, and refine their go-to-market strategies. This will help in setting realistic targets and aligning resources effectively to maximize potential. 3. Leveraging Technology and Innovation: Staying ahead of technological shifts, particularly in AI and digital transformation, is essential. CEOs should foster a culture of innovation, encourage experimentation, and integrate new technologies to stream-line operations and enhance customer experiences. Focusing on these areas will help CEOs navigate the challenges of Q1 and set a strong foundation for the rest of the year. How do you see these strategies fitting into your organization's plans? Ready to dive deeper into any particular step? Let’s discuss! For more posts like this, follow me @ https://lnkd.in/gnrwyZtR

Your Web3 project isn’t getting funded because you're focused on the wrong metrics. Here is how to fix it 👇 🧪 Build a prototype, not a pitch Your MVP should solve a real problem. Ship something users can test and give feedback on. Execution > ideas. 💬 Build your community before raising capital Investors look for signals. An engaged, loyal community is the strongest one. NEVER buy fake followers - they’re a red flag, not an asset. 🔍 Focus on metrics that matter Investors want hard numbers, not promises. Data showing active user retention is far more valuable than metrics that don’t demonstrate user engagement or loyalty. Retention metrics > vanity metrics. 🎯 Apply for funding strategically Not all funding paths are created equal. Choose wisely: - Ecosystem Grants: Perfect for chain integrations. - Protocol Grants: Ideal for improving existing protocols. - Hackathons: Great for networking and testing ideas. - VCs: Focus on teams with strong technical execution, clear roadmaps, and scalable potential. Don’t shotgun your pitch - tailor it to fit the funding source. 📈 Build momentum before talking to VCs VCs back progress, not just ideas. Before pitching: - Highlight adoption curves, early community growth, and technical achievements. - Build relationships with early users - they’re your first advocates. - Launch an MVP, iterate fast, and showcase how feedback has improved your product. 🔥 Don't burn cash on hype Focus on: - Token utility: Depending on the project, you can show a strong strategy for generating yield, TVL, or transaction growth. - Treasury management: Keep 12+ months of runway in stablecoins or diversified assets. - Community engagement: Highlight governance votes, staking rates, and active participation. Keep it lean, measurable, and sustainable. 💲 Want to raise capital? Build first and show progress. The money is out there. The question is: Are you fundable?

𝗛𝗼𝘄 𝘁𝗼 𝗯𝘂𝗶𝗹𝗱 𝗦𝘂𝗰𝗰𝗲𝘀𝘀 𝗶𝗻 𝗠𝗲𝗱𝗶𝗰𝗮𝗹 𝗖𝗮𝗻𝗻𝗮𝗯𝗶𝘀. 𝗪𝗶𝘁𝗵𝗼𝘂𝘁 𝗕𝘂𝗿𝗻𝗶𝗻𝗴 𝗖𝗮𝘀𝗵 𝗼𝗿 𝗖𝗿𝗲𝗱𝗶𝗯𝗶𝗹𝗶𝘁𝘆 Start with the Patient, Not the Plant Medical cannabis is medicine, not wellness or lifestyle. Your product must serve a real need consistently & safely, backed by data. Understand patient journeys, work with clinics & doctors, & embed yourself in the healthcare system, not outside it. Build GACP First, Then EU GMP or Equivalent Too many try to chase EU GMP without mastering GACP. Good Agricultural & Collection Practices are about how you grow. EU GMP is for post-harvest processing & pharma-grade quality control. Get the basics right, document everything, & then scale. Make Regulation One of Your Strengths If you don’t understand the regulatory landscape, you don’t have a business. Know your country’s cannabis laws, narcotics classifications, export rules, & patient access pathways. Compliance is not a department, it’s part of your product. Never Outsource Your Integrity There will be pressure to cut corners, overpromise, or take shortcuts. Don’t. One contamination, one false claim, one deal with a bad distributor and your business collapses. In cannabis, reputation takes years to build and seconds to lose. Trust the Local Team If you operate in another country, listen to the people on the ground. Local growers, engineers, regulators, and logistics teams know more than a remote HQ ever will. Many failed projects stem from ignoring local intelligence. Control the Supply Chain Medical cannabis isn’t just about growing. It’s about controlling drying, processing, lab testing, packaging, export clearance, & more. Own your chain or verify every part of it. You cannot afford surprises with patient-use products. Avoid Chasing the “Next Big Thing” There’s always a new hype, CBD for pets, infused snacks, luxury creams. These trends rarely survive strict medical regulation. Stick to your core business. Deliver clean, consistent, compliant flower or extract. Then grow. Document Everything This industry runs on traceability. You need clean SOPs, batch logs, validated results, cultivation records, & patient outcomes. If it’s not documented, it didn’t happen. If it’s not auditable, it’s not exportable. Raise the Right Money Work with investors who understand the timelines and risks. You need partners who can handle a 3 to 5-year return horizon and still back compliance over short-term revenue. Misaligned finance will kill your project faster than pests. Know When to Say No Sometimes the smartest move is to walk away. If the laws are too grey, your partners untrustworthy, or the facility isn’t ready, pause. Medical cannabis must be built with discipline and maturity. Forced projects fail. Focused ones succeed. Please ask me how to build or fix your cannabis business if you are unsure, stuck, or scaling. I’ve worked in this space for 9+ years, and I have seen what works and what wrecks good ideas.

How did Dhruv Kohli raise 30cr at 110cr for his brand Boba Bhai from Sharks and from seasoned investors like 8i Ventures Titan Capital along with us at DeVC 🍔🚀 It comes down a razor sharp focus on the numbers that matter when running a Quick Service Restaurant (QSR) or a dark kitchen. It isn’t just about serving great food—it’s about making the numbers work. Here are three key metrics that separate the best from the rest: 1️⃣ Sales per Square Foot: The True Efficiency Test 📏💰 Every inch of space needs to work hard in a QSR or dark kitchen. Unlike traditional restaurants that focus on ambiance, these models maximize revenue from every square foot. The higher the sales per sq. ft., the better the efficiency—think McDonald’s vs. a slow-moving café. 2️⃣ Payback Period: The Faster, the Better ⚡💵 A great food business isn’t just about good margins; it’s about how quickly you get back your investment. The best QSRs and dark kitchens aim for a payback period of under 18 months—meaning they recover their setup costs fast and start making real profits. 3️⃣ Customer Retention: The Secret Sauce for Longevity 🔁❤️ One-time sales don’t build great food brands—repeat customers do. High retention means your food, pricing, and delivery experience are on point. If customers aren’t coming back, you’re just burning money on marketing. The best QSR and dark kitchen brands like Boba Bhai nail all three. High sales density, quick payback, and loyal customers—that’s the formula for a winning food business. 🍕🔥 Would love to hear from founders in the space—what’s worked for you and what do you struggle with? ⬇️

2009 → Wow Momo makes ₹2,000/ day 🪙 2023 → It makes ₹1,50,00,000 /day 🤯 Here’s the real story of Wow! Momo👇🏼 Remember the Momo place that you used to go to for those delicious momos? I am craving hunger just by the thought of it. The menu was simple - veg & non-veg momo, with the option of fried and steamed momos - that’s all. The price used to be a steal deal at ₹50 - ₹90 per plate. Enter - Wow! momos. It has over 30 varieties & costs anywhere from ₹150 to ₹300. So, what’s helping the brand to sell something at 2X the price and still build a ~₹500 Cr revenue business? But, first let's understand momo-economics 😅 It costs ₹3 to ₹7 to make a single momo. That’s around ~₹18 to ₹50 per plate. A typical Wow! location sells at least 200 plates per day. If you make a broad math on real estate and labor costs, it will be around ₹20 per plate in capital expenditure. So how do you bring scale to this business? + Brand promise. The problem with roadside eateries is first hygiene. Second, is the consistency of taste - something McDonald's cracked very early on and now everyone’s trying to replicate it for different fast food cuisines. Lastly, the eating experience, you will get a place to sit and eat peacefully at the store locations. + Location & density of demand. Extremely important for the business model to work. No wonder over 60% of locations are inside malls, shopping centers or food malls. Density helps them break-even per location faster. The other insight is opening stores inside tech parks where time to eat is a major parameter for a customer to decide what to eat in the lunch break. + Online + offline. The demand density also comes from Zomato & Swiggy. The stores outside shopping centers are focused on online and walk-in but more importantly the food ordering is critical to break-even a store in this case. + Category expansion. The demand is definitely tapering as most early adopters have tried the brand at some point. This means WoW has to solve for wedging into consumers who are fast food consumers but aren’t momo eaters. No wonder, it’s entering the “chicken” category with Wow! Chicken/ Wow! China - its competition to the likes of McDonald's burger. +Ready to eat category "Prasuma" - a ready to eat momo brand does ₹120 Cr in revenue every year. WOW is late to the party. Two things need to happen - first, a healthy variant of “momos” needs to be positioned. Second, WoW needs to really be present across 10min grocery platforms (where early adopters exist). And lastly, the insight of snack. Indians love eating their snacks - be it the maggi, chips, biscuits or even nuts. Because of the fact that momos need to be friend or put in hot water limits their ability to be an easy snack that you could prepare and store - if WoW solves for this, it opens up a whole new category of dry snack. That's all for now. Follow Abhishek for more or subscribe to our newsletter so you never miss a post. Link in comments as always.

𝙎𝙘𝙖𝙡𝙞𝙣𝙜 𝘾𝙝𝙖𝙡𝙡𝙚𝙣𝙜𝙚𝙨 𝙛𝙤𝙧 𝙒𝙚𝙗3 𝙎𝙩𝙖𝙧𝙩𝙪𝙥𝙨 – 𝙖𝙣𝙙 𝙃𝙤𝙬 𝙩𝙤 𝙊𝙫𝙚𝙧𝙘𝙤𝙢𝙚 𝙏𝙝𝙚𝙢 Web3 startups have massive potential, but many struggle to scale beyond the early adopter phase. Unlike traditional startups, they face unique challenges around infrastructure, user experience, regulation, and token models. Here are some biggest hurdles – and how to overcome them: 🔹 User Adoption: Web3 is still too complex for mainstream users. Setting up wallets, managing private keys, and dealing with gas fees create friction. ✅ Solution: Improve UX with embedded wallets, gasless transactions, and intuitive onboarding. Web3 should feel as seamless as Web2. 🔹 Blockchain Scalability: Many networks struggle with high fees and slow speeds, making it hard for dApps to scale. ✅ Solution: Leverage Layer-2 solutions, explore alternative blockchains, and optimize on-chain/off-chain interactions for efficiency. 🔹 Tokenomics & Sustainability: Many projects launch with unsustainable token incentives, leading to price crashes once rewards dry up. ✅ Solution: Design token models with real utility beyond speculation and create long-term incentives for both users and investors. 🔹 Regulatory Uncertainty: Constantly changing rules make compliance a moving target, creating risks for startups. ✅ Solution: Work with legal experts early, choose jurisdictions wisely, and build a compliance-first approach to avoid future roadblocks. 🔹 Go-To-Market Strategy: Many Web3 projects rely solely on community hype, but a strong community doesn’t always mean sustainable revenue. ✅ Solution: Combine Web3-native growth (DAOs, token incentives) with proven Web2 marketing strategies (SEO, performance ads, partnerships). 🚀 The future belongs to startups that seamlessly integrate Web3 technologies into everyday life—without users having to think about wallets, gas fees, or blockchain protocols. What did I miss?

Here's what restaurant consultants charge ₹5 lakhs to tell you...and why most owners learn it too late. The 30% Rule Nobody Follows Food costs should never exceed 30% of revenue. Sounds simple? Then why do 80% of Indian restaurants operate at 45-50% food costs? Successful chains like Barbeque Nation engineer their buffet offerings to maintain exactly 28% food costs while making customers feel they're getting incredible value. The Ghost Kitchen Gold Mine While traditional restaurants struggled with real estate costs, brands like Rebel Foods (Faasos, Behrouz Biryani) built a ₹800 crore business from shared kitchen spaces. They operate 15+ brands from the same kitchen... something impossible with traditional dine-in models. The Loyalty Program Lie Most restaurants think loyalty programs mean "buy 9 get 1 free" cards. Meanwhile, Starbucks India's app generates 40% of their revenue because they've gamified the entire experience. Points, levels, exclusive offers – they've turned coffee buying into a mobile game. The Inventory Intelligence Pizza Hut India can predict demand for specific toppings in specific locations 3 days in advance. They waste less than 2% of ingredients. Compare this to independent restaurants that throw away 15-20% of purchased ingredients weekly. The Brutal Economics Successful restaurant chains aim for 15-20% net profit margins. If you're not hitting these numbers consistently, you're not running a business, you're funding a very expensive hobby. The restaurant industry rewards systems thinking, not just good food. Those who understand this build empires. Those who don't risk becoming cautionary tales. What's one restaurant "best practice" you think is actually holding the industry back? #RestaurantIndustry #FoodBusiness #BusinessStrategy #Profitability #GhostKitchens #FoodTech #RestaurantConsulting #IndianRestaurants #BarbequeNation #RebelFoods #StarbucksIndia #PizzaHutIndia