Firm
Investment philosophy.
Six plain principles for deciding where capital belongs, how results should be measured, and how interests stay aligned.
- 01
Start with the bottleneck.
Every investment should address one clearly named growth problem. If the problem cannot be explained, the investment is not ready.
- 02
Decide how to measure before spending.
Choose the business record, starting point, and review schedule before the investment begins.
- 03
Fewer decisions, made carefully.
A focused review of a small number of clear opportunities is more useful than rushing through a large pipeline.
- 04
Align payment with the agreed result.
When compensation depends on revenue, the included revenue and the method for checking it should be defined in writing.
- 05
Write down the important decisions.
The evidence, assumptions, approval, terms, and results should be clear enough for another person to understand later.
- 06
The business should benefit first.
The structure should work only when the investment creates a useful operating improvement for the business.
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