My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Brand as Moat Strategy
Using brand power as a primary competitive moat instead of technology or network effects, particularly effective in luxury goods where perception drives value.
How It Works
Brand creates customer desire and willingness to pay premium prices that compound over time, becoming stronger with age and exclusivity rather than weaker.
Components
Identify products where desire can be created beyond functional need
Build heritage and story that improves with time
Maintain exclusivity while scaling operations
Combine brand vision with operational excellence
Price for luxury margins (75%+ gross margins)
When to Use
Industries where status, craftsmanship, or heritage matter more than functional utility. Works best with products that can maintain exclusivity while scaling.
When Not to Use
Commodity markets, pure utility products, or industries where technology advantages can easily obsolete brand value.
Anti-Patterns to Avoid
Example
“Louis Vuitton founded in 1854 maintains relevance and premium pricing because the brand becomes more valuable over time, unlike technology products that depreciate.”
Related Knowledge
Acquire and turn around distressed luxury brands
Transformed brand with luxury margins (75%+), global distribution, and sustainable competitive moat
Build trusted business relationships entirely through digital interactions
Trusted business partnerships conducting significant transactions without ever meeting in person
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Correct Lesson Learning Framework
A systematic approach to evaluate whether someone is drawing the correct conclusions from their experiences, rather than just having experiences.
Service-to-Product Acquisition Strategy
Using profits from a service business to systematically acquire better businesses with recurring revenue and product characteristics.
Diagnostic Authority Model
When you can diagnose a problem for someone, you gain more authority and sales leverage than if they already know they h