My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Harvard's Triple Business Model
A framework for understanding how elite institutions combine tax exemption (church), investment management (hedge fund), and premium services (luxury daycare) to create massive tax-free wealth generation.
How It Works
Tax-exempt status eliminates taxes on donations, tuition, and investment gains. Large endowment (Harvard: $50B) generates investment returns. Premium positioning allows charging high fees while government subsidizes customer financing through student loans.
Components
Secure tax-exempt status through educational/charitable mission
Build large endowment for investment income
Create premium brand justifying high prices
Leverage government subsidies for customer financing
Diversify revenue streams beyond core service
When to Use
When analyzing institutional competitive advantages, designing tax-advantaged business models, or understanding why certain organizations seem untouchable.
When Not to Use
For typical for-profit businesses that can't claim educational or charitable exemptions.
Anti-Patterns to Avoid
Example
“Harvard generates $5.8B annual revenue: $2B from endowment returns, $1.2B from education, $1B government grants, $500M donations, $300M publishing - all tax-free while charging $70K tuition subsidized by government student loans.”
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