Tanmay Patel's Key Ideas from The Personal MBA
by Josh Kaufman

is the general tendency to pay attention to information that supports your conclusions and ignore information that doesn't.

Paying attention to disconfirming evidence is not easy -- it means searching for reasons you might be wrong, and who likes to be wrong?

"Flat Earthers" are dramatic examples for the same. Even after participating in an experiment to prove the earth is flat , their findings concluded otherwise. The result: they said that they were not willing to accept it, and started finding ways to disprove it. 

Being aware to confirmation bais can pay dividents and prevent major errors.

is the natural tendency to blame yourself for things you "should have known".

Every decision you make will be based on incomplete information available at that point in time. You will always have more information after the decision is taken than before. Feeling bad about things that you "shoud have seen" is not helpful at all. Changing that past is outside of your Locus of control. 

Hindsight Bias becomes destructive if you judge yourself or others for not knowing the unknowble. 

Analyse your decisions, and take away the key learnings from it. That is it, nothing more than that.

A business will always have Flows -- movement of resources into and out of the system.

Inflows are resources moving into a system : money into a bank account, raw materials into a factory, new hires into a company.

Outflows are resources moving out of a system : money exiting the bank account, finished goods leaving a factory, employees leaving.

Follow the flows and you will understand how the system works in no time.

There are ONLY 4 ways to increase your business's revenue:

1. Increase the number of customers you serve.
2. Increase the average size of each Transaction by selling more. (Think about upselling in restuarants). Appetizers , drinks and desserts are offered to you , to increase the size of the transaction).
3. Increase the frequency of Transactions per customer. (Some products are naturally addictive, like nicotine from tobaco, so the brands selling these products will have high frequency sales. Also think micro-transactions in an app or high number of advertisements on a webpage).
4. Raise your prices.(Duhh!)

Not every customer is a good customer. Some customers who require more time, energy, attention or risk than they are worth to your bottom line are not worth attracting in the first place. 

Think about car insurance companies. They let customers go through a questionnaire asking them about their education, marital status, past accidents , etc to figure out wether you fall in the "good risk" bucket or the "bad risk" bucket. 

If you double your prices, and lose less than half your customers, its probably a good move. Pricing power is your ability to raise the prices you are charging over time. It is related to "price elasticity" in economics.

Businesses that sell goods which are status symbols will probably have a higher pricing power that businesses that sell un-differentiated comodities like generic toothpaste or food grains. 

Pricing power is important as raising your prices allows you to overcome the adverse effects of inflation and increased costs.