Post by compound26 on Jan 18, 2017 19:09:04 GMT -5
Does the following fits Mannkind? I think so. I think it is good that Mannkind is nimble and small right now. Mannkind 1.0 did not work. Hope Matt, Mike and the team execute Mannkind 2.0 and 3.0 well!
“Good and Bad Capital”
www.morgannoble.com/strategy/good-and-bad-capital/
Clayton Christensen, Harvard professor and disruptive change and innovation expert explains: “At a basic level, there are two goals investors have when they put money into a company: growth and profitability. Neither is easy. Professor… showed… 93 percent of all companies that ultimately become successful had to abandon their original strategy— because the original plan proved not to be viable. In other words, successful companies don’t succeed because they have the right strategy at the beginning; but rather, because they have money left over after the original strategy fails, so that they can pivot and try another approach. Most of those that fail, in contrast, spend all their money on their original strategy— which is usually wrong. The theory of good money and bad money essentially… work as a simple assertion. When the winning strategy is not yet clear in the initial stages of a new business,
…good money from investors needs to be patient for growth but impatient for profit. It demands that a new company figures out a viable strategy as fast as and with as little investment as possible— so that the entrepreneurs don’t spend a lot of money in pursuit of the wrong strategy. Given that 93 percent of companies that ended up being successful had to change their initial strategy, any capital that demands the early company become very big, very fast, will almost always drive the business off a cliff instead.
A big company will burn through money much faster, and a big organization is much harder to change than a small one. Motorola learned this lesson with Iridium.
…That is why capital that seeks growth before profits is bad capital. But the reason why both types of capital appear in the name of the theory is that once a viable strategy has been found, investors need to change what they seek— they should become impatient for growth and patient for profit.”
Once a profitable and viable way forward has been discovered— success now depends on scaling out this model. (pp. 87-88). Harper Collins, Inc. from “How Will You Measure Your Life?
“Good and Bad Capital”
www.morgannoble.com/strategy/good-and-bad-capital/
Clayton Christensen, Harvard professor and disruptive change and innovation expert explains: “At a basic level, there are two goals investors have when they put money into a company: growth and profitability. Neither is easy. Professor… showed… 93 percent of all companies that ultimately become successful had to abandon their original strategy— because the original plan proved not to be viable. In other words, successful companies don’t succeed because they have the right strategy at the beginning; but rather, because they have money left over after the original strategy fails, so that they can pivot and try another approach. Most of those that fail, in contrast, spend all their money on their original strategy— which is usually wrong. The theory of good money and bad money essentially… work as a simple assertion. When the winning strategy is not yet clear in the initial stages of a new business,
…good money from investors needs to be patient for growth but impatient for profit. It demands that a new company figures out a viable strategy as fast as and with as little investment as possible— so that the entrepreneurs don’t spend a lot of money in pursuit of the wrong strategy. Given that 93 percent of companies that ended up being successful had to change their initial strategy, any capital that demands the early company become very big, very fast, will almost always drive the business off a cliff instead.
A big company will burn through money much faster, and a big organization is much harder to change than a small one. Motorola learned this lesson with Iridium.
…That is why capital that seeks growth before profits is bad capital. But the reason why both types of capital appear in the name of the theory is that once a viable strategy has been found, investors need to change what they seek— they should become impatient for growth and patient for profit.”
Once a profitable and viable way forward has been discovered— success now depends on scaling out this model. (pp. 87-88). Harper Collins, Inc. from “How Will You Measure Your Life?
