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ADJUVA LEGAL® • 3d
DBA Lessons for Founders - Externalities Topic 1 - A Founder's Guide to Externalities: The Hidden P&L Alright founders 👋 You track your revenue, your costs, your burn rate... But are you tracking your company's externalities? Every business creates a ripple effect on the world. These are real costs and benefits that don't appear on your balance sheet but have a massive impact on your strategy. Negative Externalities: Your Hidden Debits 📉 This is the unintended, negative impact your business has on society. The Example: Think about the boom in 10-minute grocery delivery in Mumbai or Bangalore. The Business: A startup promises to deliver groceries to your door in under 10 minutes. The Private Transaction: A customer pays for groceries + a delivery fee. Simple. The Impact: The intense pressure for speed means delivery partners often drive aggressively, adding to traffic chaos and safety risks. The numerous "dark stores" (mini-warehouses) in residential areas increase local traffic and congestion. This stress on public infrastructure and safety is a real cost. The startup isn't paying for it directly, but the COMMUNITY is. This is a negative externality. ------ Pic credit - Helpful Professor
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