Governance & Decision
Capital is rarely the source of competitive advantage. It amplifies the quality of the decisions that precede it, making the first question not how much capital is needed, but what decision is being financed.
Capital is rarely the source of competitive advantage. It amplifies the quality of the decisions that precede it, making the first question not how much capital is needed, but what decision is being financed.
“How much capital do we need?” is a question we hear often.
It is usually the wrong first question.
Capital is rarely the source of competitive advantage.
Better decisions are.
Capital simply allows good decisions to scale faster and bad ones to become more expensive.
Perhaps the first conversation should never be about capital.
It should be about the decision we are trying to finance.