Business Triangle Fundamentals

A breakdown of core business fundamentals discussed by Shaan Puri and Sam Parr, focusing on the key elements needed for business success.

Core Business Triangle

• Get customers

  • Usually the hardest part of any business
  • Requires strong "marketing mojo"
  • Critical for sustainable growth

• Charge enough

  • Need sufficient margins to maintain profit
  • Must price appropriately for market
  • Should leave room for operational costs

• Keep customers

  • Focus on retention
  • Deliver consistent value
  • Build long-term relationships

Extended Business Framework

• Four key pillars according to Sam Parr:
  1. Getting capital/money
  2. Making the product
  3. Getting sales
  4. Building the team (convincing people to work there)

Customer Acquisition Strategies

• Can reinvest profits into customer acquisition
  • Example: Using 50% of revenue typically given to creators for marketing instead
• Free content strategy
  • Give away content initially to build user base
  • Use as loss leader to attract customers
• Search engine optimization
  • Critical for certain industries (stock photos, music, etc.)
  • Can be as competitive as credit card space
  • Requires significant marketing expertise

Business Success Factors

• Marketing capabilities often determine success
• Need sustainable customer acquisition strategy
• Must have clear path to profitability
• Product quality matters but distribution is key
• Long-term viability requires balance of all elements