DOMAIN

Finance

The art of turning capital into conviction.

Frameworks

Core mental models and strategic tools for this domain.

FINANCE

Unit Economics by Cohort

Each wave of customers tells a different story, listen before you celebrate the tide.

KEY COMPONENTS

Revenue per userCost per userCohort groupsLifetime valueRetention signalsTrend over time

Document YouTube

FINANCE

The Rule of 40

Grow fast or profit well, just make sure the two always add up to forty.

KEY COMPONENTS

Growth rateProfit marginSaaS health40% thresholdBalance checkSustainability signal

Document YouTube

FINANCE

Cash Conversion Cycle

Money in motion, the faster it circles back, the richer the river.

KEY COMPONENTS

Inventory daysReceivablesPayables timingWorking capitalCash speedCycle length

Document YouTube

FINANCE

Real Option Valuation

The right to change your mind has a price, and it's worth more than most think.

KEY COMPONENTS

Future flexibilityDecision rightsUncertainty valueStrategic timingEmbedded optionsWait-and-see

Document YouTube

FINANCE

Quality of Earnings

Peel back the paint, real earnings have nothing to hide.

KEY COMPONENTS

Sustainable revenueCash qualityAdjusted profitsOne-time itemsEarnings reliabilityTrue picture

Document YouTube

FINANCE

Zero-Based Budgeting

Every budget starts at zero, prove your worth or lose your seat at the table.

KEY COMPONENTS

Clean slateJustify every dollarNo legacy spendRebuild from zeroCost disciplineEfficiency first

Document YouTube

Fusions

Powerful combinations of concepts applied to real-world scenarios.

The Subscription Crossing

Unit Economics by Cohort + Rule of 40 + Net Revenue Retention (NRR)

Open Document

The Membership Money Machine

Unit Economics by Cohort + Cash Conversion Cycle

Open Document

The Earnings Truth Serum

Quality of Earnings (QoE) + Free Cash Flow Conversion

Open Document

The Capital Discipline Triad

Economic Value Added (EVA) + Zero-Based Budgeting + ROIC Driver Tree

Open Document