The capital chain starts with capital that is used to buy assets to create products that generate sales and increase net income.

Differentiation just takes creativity. Look around and find some object. If you were selling that object, how would you differentiate it?

A lot of companies focus on selling features rather than taking a much more effective approach selling benefits. Show potential customers the idea and appeal to the emotions, creating a positive personal connection.

Although it is hard to change people, nothing changes people faster than changing their environment. Their environment then shapes the culture.

A balance sheet is a snapshot in time and is a good indicator of your net worth as a business. Now let’s jump into your income statement.

Ask your biggest fans what they like (a particular feature), why they like it (product benefit), why that matters (personal benefit), and how that connects to a high-level personal value. The link between the product and personal benefit is where the magic happens.

Spend time on soft costs (planning, ideating). Most companies invest very little in soft costs, which can be detrimental once a (product, theme park, etc.) is launched.

Managerial accounting is for internal use in order to inform decisions, unlike corporate accounting, which is for external use (investors, etc.).

Pro forma is just a fancy way of saying “what the future could look like.” It is forecasting based on an increase in sales.