The Personal MBA

Flashcards covering business concepts from the book 'The Personal MBA' by Josh Kaufman, focusing on value creation.

The Personal MBA

A foundational business book providing a clear, comprehensive overview of important business concepts.

Core Principles

Small set of important concepts that provide most of the value in learning any subject.

Mental Models

Concepts that represent your understanding of how something in the world works, influencing your expectations, decisions, behavior, and results.

A Business

It provides (1) something of value that (2) other people want or need at (3) a price they're willing to pay, in a way that (4) satisfies the customer's needs and expectations so that (5) the business brings in sufficient profit to make it worthwhile for the owners to continue operation.

Essential Factors of a Business

Every successful business relies on Value Creation, Customer Demand, Transactions, Value Delivery, or Profit Sufficiency.

Economically Valuable Skill

Any skill or knowledge that helps you create value, market, sell, deliver value, or manage finances.

Iron Law of the Market

If you don't have a large group of people who want what you have to offer, your chances of building a viable business are very slim.

The Drive to Acquire

The desire to obtain or collect physical objects, as well as immaterial qualities like status, power, and influence.

The Drive to Bond

The desire to feel valued and loved by forming relationships with others, either platonic or romantic.

The Drive to Learn

The desire to satisfy our curiosity.

The Drive to Defend

The desire to protect ourselves, our loved ones, and our property.

The Drive to Feel

The desire for new sensory stimuli, intense emotional experiences, pleasure, excitement, entertainment, and anticipation.

Product

A tangible form of value