A simple way to understand how investors think about our business/product – they come for the magic and stay for the math.
The inspiring story is the magic that many of us associate with charismatic leaders. In times when everything is going up and to the right, there’s a lot of appetite for magic.
Eventually, however, no amount of magic can save a business or product from the math. So, our ability to deliver and capture value in a way that results in consistent y/y growth rates is the kind of math that creates its own magic in the long run.
From time to time, it is natural to wonder how much more successful our businesses/products might be with more magic and showmanship.
But, that’s short term thinking. The magic is the personality and the math is the character. And, while personality opens doors, character keeps those doors open.
So, if we had to invest in just one thing, let that one thing be making the math work.
This applies just as well to those who invest in our careers/lives.
PS: Unlike investors, our users/customers are just as likely to stay for the magic as they are for the math.