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P01

How a Business Works

What a business really is, how it makes money, and why profitable companies still go broke. The foundation for everything else.

Start the course →10 lessons · first 2 free
  1. What a Business Really DoesEvery business is a machine that creates value for customers and keeps a slice of it. Here's how to see that machine. · 10 minFree
  2. Revenue, Costs and ProfitThe three numbers every business lives by, and the margin that tells you how healthy each sale is. · 10 minFree
  3. Fixed vs Variable Costs: Break-EvenSome costs grow with every sale, some don't move at all. Split them, and you can say exactly how much you need to sell to stop losing money. · 12 min🔒 VIP
  4. How Businesses Make Money: Business ModelsSelling once, charging every month, taking a cut, giving it away free. The same product can make very different money depending on the model. · 12 min🔒 VIP
  5. Profit Isn't CashA business can be profitable on paper and still run out of money. Here's why it happens, and the three levers that stop it. · 12 min🔒 VIP
  6. Unit Economics: Is Each Customer Worth It?What it costs to win a customer, what they're worth over their lifetime, and the one ratio investors check first. · 12 min🔒 VIP
  7. The Parts of a CompanyMarketing, sales, operations, finance, people. What each part does, how an order flows through all of them, and where the money goes. · 11 min🔒 VIP
  8. Who Owns a Company: Shares and Legal FormsA company is split into shares. Sell some and you get money, but you own a smaller slice. And the legal form you pick decides what you could lose if it all goes wrong. · 12 min🔒 VIP
  9. Stakeholders: Who Gets Paid, and in What OrderCustomers, staff, suppliers, lenders, the government and owners all have a claim on a company. Follow every dollar and see why owners are paid last, and why that's fair. · 12 min🔒 VIP
  10. Boss: Run a Summer Lemonade BusinessEverything in this course, in one summer: set the price, find break-even, protect your cash, and make the big calls. Your goal: the most money at the end of 10 weeks. · 15 min🔒 VIP