Running the Numbers

by Paul Polak and Sydney Bergen Over the last 30 years I have found it useful to constantly and obsessively “Run the Numbers” when I look at any business opportunity. I try to do this in a way that quickly strikes to the heart of any business. Running the numbers can identify key transformative opportunities as well as the greatest likely stumbling blocks to success. Just about every entrepreneur I know can generate the financial projections required by a standard business plan. But the ability to carry out rapid and sequential back-of-the envelope estimates of things like where the sweet spot in the market lies,…

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Is it Wrong for Business to Profit from the Poor?

Mohammad Yunus is a nice man. He's also very smart, innovative, a risk-taker -- and a winner of the Nobel Prize for Peace. However, he is sometimes wrong. And he's most certainly wrong when he insists, as he has done so frequently in recent years both in his books and in public appearances, that the solution to global poverty lies in forming "social businesses" that never distribute profits to investors. “Poverty should be eradicated," Yunus asserts, "not seen as a money-making opportunity.” He believes that investors in social businesses should only get their money back. In my view, that adds up to a sizable interest-free subsidy,…

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From Concept to Market: How to Design for Impact

Responding to Martin Herrndorf's (@Herrndorf) blog post titled All That Glitters is Good on NextBillion.net "How do we commercialize university and do-it-yourself projects for the Other 90%? Too much sits in research." Paul Polak's video response is below: "The Appropriate Technology movement failed because it was peopled by technocrats rather than hard-headed entrepreneurs, and technologies were designed to solve technological problems rather than being designed for the market." "The same problem exists when technologies are designed in design courses in universities, rather than being designed to fit into markets, and markets that are scalable. In order to make things work with practical impact they have to be designed…

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