Business Archives

2 Factors That Influence the Cost of Labor (Adam Smith)

How are wages set? Why does geography affect the cost of labor more than the cost of goods? The natural price of a good changes in accordance with changes in any of the costs of production. In The Wealth of Nations, Adam Smith identifies labor as one of these costs. He discusses how supply and demand, as well as the living conditions of workers, influence the cost of labor. Continue reading to understand how the cost of labor operates in an economy.

What Is Natural Price? Adam Smith Explains the 3 Factors

What does it mean to get a “good deal” on a product? What’s the natural price of a good? When supply and demand are in equilibrium, goods will be sold for their natural price. Adam Smith explains that the natural price is the cost of bringing a good to market. He discusses this concept in his classic work The Wealth of Nations. Read more to understand natural price and the three primary costs that determine it.

The Cold Start Problem by Andrew Chen: Book Overview

How to Develop Your Success Consciousness

Want to read an overview of The Cold Start Problem by Andrew Chen? What is the network effect and how can it help your business? In The Cold Start Problem, Andrew Chen explains how to build a startup that uses the network effect to compete with the established giants in your industry. In the book, Chen offers tips on building a network-based business from scratch. Read on for an overview of Andrew Chen’s book The Cold Start Problem: How to Start and Scale Network Effects.

Adam Smith: Capital Grows a Nation’s Wealth in These 2 Ways

What role does self-interest play in capital lending? How is it good for the economy as a whole? According to Adam Smith, capital grows a nation’s wealth. He identifies two main reasons. First, the self-interest of the capital lender encourages them to invest in productive labor. Second, the self-interest of the lender guides them to invest in less-developed portions of the economy and help them develop. Keep reading to learn how lending capital for profit plays an essential role in growing the wealth of nations.

Why a Niche Targeting Strategy Works Best for Tech Startups

What is a niche targeting strategy? Why does this strategy work best for business growth, especially for tech startups? According to Andrew Chen, if there’s a secret to success in the tech industry, it’s a thorough understanding of the network effect. He claims that using the network effect together with a niche targeting strategy is one of the best ways to make your startup profitable. Read on to learn why a niche targeting strategy helps tech startups grow, according to Chen.

Adam Smith’s Theory of International Trade: It’s About Freedom

Do embargoes lead to smuggling? Does trade benefit both countries? Is a trade deficit a bad thing? Adam Smith disagrees with restricting international trade for three reasons. He argues that it incentivizes smuggling, redirects domestic capital towards inefficient industries, and prevents countries from entering into mutually beneficial trade relationships. Continue reading for an overview of Adam Smith’s theory of international trade.

Grow Your Customer Base: 3 Network Effect Strategies

Why is it important to grow your customer base? What are some ways to attract new customers? In The Cold Start Problem, author Andrew Chen explains how to establish and grow a business from scratch based on the network effect business model. According to him, if you want to grow your customer base, it’s important to understand how the network effect works in business growth. Read on to learn three strategies to grow your customer base, according to Chen.

Critiquing Regulated Markets: Adam Smith Calls Out 2 Policies

What happens when the government meddles with the economy? What do regulated markets produce (or fail to produce)? The development of a nation’s wealth depends on competitive markets in which participants are free to act in their own self-interest. In The Wealth of Nations, Adam Smith identifies government policies that interfere with this process and slow down economic growth. We’ll explore two regulated market policies that Smith critiques: restricting international trade and subsidizing industries.

How to Expand Your Business With the Network Effect

Want to know how to expand your business for rapid growth? How can you achieve “Growth Explosion?” According to venture capitalist Andrew Chen, Growth Explosion is what happens when you build enough subnetworks to become a legitimate competitor to the current industry leader. Chen offers three methods to expand your business rapidly in his book The Cold Start Problem. Read on to learn how to expand your business rapidly, according to Chen’s three methods.

How to Manage Rapid Business Growth: 3 Common Issues

Want to know how to manage rapid business growth? What are the most common issues of rapid-growth companies? According to Andrew Chen’s book The Cold Start Problem, once you’ve achieved rapid growth, you also inherit a unique set of problems. In the book, he explains how to manage rapid business growth by explaining methods for navigating the three most common issues you’ll encounter. Read on to learn how to manage rapid business growth, according to Chen.