Monthly Archives: April 2013

Economies Of Scale As A Service


Credit where it’s definitely due: this post was inspired by a Twitter conversation with Box CEO Aaron Levie.

Don’t look now, but something remarkable is happening.

Instagram had twelve employees when it was purchased for $700 million; all of its actual computing power was outsourced to Amazon Web Services. Mighty ARM has only 2300 employees, but there are more than 35 billion ARM-based chips out there. They do no manufacturing; instead they license their designs to companies like Apple, who in turn contract with companies like TSMC for the actual fabrication. Nest Labs and Ubiquiti are both 200-employee hardware companies worth circa $1 billion…who subcontract their actual manufacturing out to China.

Warren Buffett has long advocated investing in businesses with “moats” around their business model. Often that moat is an economy of scale; the notion that a hundred widgets cost a dollar each but a…

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Youngstown SOUP

(This idea is not original in any way, but the best ideas are borrowed and built upon anyway)


Its called Detroit SOUP. I first heard about this idea from friends from Detroit. There is a monthly get together where people pay $5 for a bowl of soup, bread, salad, and a vote. The vote is for the best creative community project pitched that night. The project that receives the most votes gets the profits from the event for seed money.

Big Time Benefits of SOUP Event

1. Community. The event brings people from all walks of life together around a common cause.

2. Culture. SOUP promotes a culture of community activism, creativity, and entrepreneurship.

3. Local Investment. A simple $5 meal could help start projects in our own backyards. It starts a dialogue of local economy.


Who wants to work on Youngstown SOUP beginning Summer 2013?

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