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Saket Sambhav
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ADJUVA LEGAL® • 1d
DBA Lessons - EXTERNALITIES - Chapter 3 Your Startup's Hidden Costs & Secret Assets. WHY do Externalities matter to you? 🧠 As founders, understanding this isn't just theory; it's a vital business strategy. 📉 Your NEGATIVE Externalities are Your Future RISKS. These are the hidden "debits" or problems your business creates for society. If you ignore them, they will come back to bite you. Example: Think of the traffic chaos and rash driving sometimes associated with quick-commerce delivery fleets. That public frustration is a negative externality that eventually leads to public pressure and stricter regulations. The Lesson: A smart founder sees these problems early and starts building solutions (like better driver training, optimized routes, or using EVs to cut noise pollution) before they are forced to. ✨ Your POSITIVE Externalities are Your Greatest ASSETS. These are the hidden "credits" or the good your business does for society that you don't directly get paid for. This is your "Impact" story. Example: Think of how UPI-based fintech startups have brought millions of small vendors into the formal digital economy. That financial inclusion is a massive positive externality. The Lesson: This story is what you use to: Attract top talent who want to work on something meaningful. Get ESG (Environmental, Social, Governance) investors excited to fund you. Build a fiercely loyal customer base. Learn to measure these positive impacts and make them a core part of your brand. The takeaway is simple: Don't just build a business; understand its full impact. The most valuable companies of tomorrow will be the ones that actively manage their hidden costs and amplify their hidden credits. What's a positive or negative externality you're thinking about for your startup? 👇
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