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Business
The Science of the Perpetuity
Michael Herlache MBA
Doctorate of Business Administration Candidate 2020
Business
The Science of the Perpetuity
Index
I. Introduction to Business
II. Business as Science
Perpetuities
Build or Buy
I. Introduction to Business
Business is the science of building or buying perpetuities
Perpetuity value = PMT / Discount rate
Perpetuities
Build or Buy
II. Business as Science
To maximize returns, either invest in building perpetuities (software,
intellectual property) or invest in the market portfolio. If an
organization is not a perpetuity, do not invest time, energy or
resources.
Perpetuities
Build or Buy
II. Business Priorities
Priority for startups:
1. Turn business into perpetuity
Priorities for existing business:
1. Maintain business being a perpetuity
2. Turn business into growing perpetuity
Perpetuities
Build or Buy
II. Business Reality
Don’t worry about growth. Growth comes after becoming a perpetuity
Startup is a misnomer as a business is a 10 year commitment only
going ramen profitable in year 3. You will have no income for three
years. Startup is acquisition of database, building of platform,
communicating to users, converting to active users.
Perpetuities
Build or Buy

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Business The Science of the Perpetuity

  • 1. Business The Science of the Perpetuity Michael Herlache MBA Doctorate of Business Administration Candidate 2020 Business The Science of the Perpetuity
  • 2. Index I. Introduction to Business II. Business as Science Perpetuities Build or Buy
  • 3. I. Introduction to Business Business is the science of building or buying perpetuities Perpetuity value = PMT / Discount rate Perpetuities Build or Buy
  • 4. II. Business as Science To maximize returns, either invest in building perpetuities (software, intellectual property) or invest in the market portfolio. If an organization is not a perpetuity, do not invest time, energy or resources. Perpetuities Build or Buy
  • 5. II. Business Priorities Priority for startups: 1. Turn business into perpetuity Priorities for existing business: 1. Maintain business being a perpetuity 2. Turn business into growing perpetuity Perpetuities Build or Buy
  • 6. II. Business Reality Don’t worry about growth. Growth comes after becoming a perpetuity Startup is a misnomer as a business is a 10 year commitment only going ramen profitable in year 3. You will have no income for three years. Startup is acquisition of database, building of platform, communicating to users, converting to active users. Perpetuities Build or Buy