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My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

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Harvard's Triple Business Model

Reusability

A framework for understanding how elite institutions combine tax exemption (church), investment management (hedge fund), and premium services (luxury daycare) to create massive tax-free wealth generation.

How It Works

Tax-exempt status eliminates taxes on donations, tuition, and investment gains. Large endowment (Harvard: $50B) generates investment returns. Premium positioning allows charging high fees while government subsidizes customer financing through student loans.

Components

1

Secure tax-exempt status through educational/charitable mission

2

Build large endowment for investment income

3

Create premium brand justifying high prices

4

Leverage government subsidies for customer financing

5

Diversify revenue streams beyond core service

When to Use

When analyzing institutional competitive advantages, designing tax-advantaged business models, or understanding why certain organizations seem untouchable.

When Not to Use

For typical for-profit businesses that can't claim educational or charitable exemptions.

Anti-Patterns to Avoid

Focusing only on one revenue streamNeglecting brand/status positioningNot maximizing tax advantagesFailing to build endowment for compound growth

Example

Harvard generates $5.8B annual revenue: $2B from endowment returns, $1.2B from education, $1B government grants, $500M donations, $300M publishing - all tax-free while charging $70K tuition subsidized by government student loans.