Hey EV readers 👋 

I hope you've had an amazing week so far! I've got something special for you - a delightful mix of insights that will quench your thirst for knowledge and help you power through another week of hustle and bustle. Enjoy!

Advertise Like The Ancient Egyptians - The Papyrus of Slave Shem

Ancient Egypt is known as the cradle of civilization for many reasons. However, one less known fact about them is that the oldest known advertisement can be traced back to Ancient Egypt. Think about it, they knew how to read and write and were also good at trading.

So it is only fair they advertised their goods somehow. As with other things, Ancient Egyptians turned out to be skilled advertisers according to an ad that dates back to 3000 BC. The ad was placed by an Egyptian known as Hapu, the Weaver.

According to the story, Hapu owned a factory with many slaves. One day, a slave named Shem went missing and Hapu needed the help of the public to find Shem. So he contracted a scribe to write an ad on a papyrus. Here’s what the ad said;

The gold coin was worth its weight in gold, literally. And will get many people in on the search and talking about Hapu’s shop. It was an attention magnet, much like leads generating.

But the catch here is the phrase - “where the best cloth is woven to your desires”. Think about the best ads you remember, perhaps it isn’t the ad itself but what was said that you can easily recall.

Example Nike - Just do it, Apple - Think Different, Addidas - Impossible is Nothing, etc. By the end of the search, most people would have associated Hapu’s shop with the catchphrase.

Whether or not Hapu had a slave called Shem remains unknown.

If Shem was a fictitious slave, then Hapu’s goal was purely to advertise his business. If Shem was missing, then Hapu would have solved two problems with one gold coin. Either way, this was ingenious.

Four Business Concepts Every Entrepreneur Should Know

Time value of money (TVM)

Money at hand is worth more than the same amount in the future. If you had access to 10,000 USD and you were given two choices; You either take the money right now or wait and get the same amount in 5 years (without interest).

Most people will choose the first option, mainly because there is nothing to gain in holding the money for the next five years. If the money appreciates by a certain amount yearly (that is interest is added annually), then most people would rather hold for the next five years.

The time value of money compares the present value of the money at hand and its future value and helps entrepreneurs make important financial decisions. According to a Harvard Professor, there are three reasons why this concept is true.

Reason 1 - Opportunity Cost: So if you were to get your 10,000 USD, you can easily flip it around by investing, and depending on your return on Investment (ROI), you stand to get more than the initial amount in 5 years.

Reason 2 - Inflation: If you were to hold for 5 years, you’d still be getting the same 10,000 USD which would likely have less value due to inflation. So you can get more assets today than in the next 5 years.

Reason 3 - Uncertainty: What if something were to happen and you lose access to the 10,000 USD? Then you have nothing in 5 years.

As I said, the situation is different if the money adds interest over the 5 years holding period. This is why I like this statement by the HBR;

Compound interest

Most people learn the basics of compound interest in school but never get to use it. As a business owner, compound interest should be your best friend. This concept nicknamed “The Eight Wonder of The World” by Albert Einstein has made many billionaires.

According to Warren Buffet, one of the three reasons behind his immense success is compound interest. Buffet gave an analogy that best describes the concept. He said it is like rolling a snowball down the hill. The further the ball goes, the bigger it gets, and the greater its speed.

Compound interest can work for or against you, and no one puts this better than Einstein who said;

How does one pay for neglecting this concept? One word, DEBT. You could amass so much debt, just as you build wealth using this concept. So What is it going to be?

Your "first million" is the hardest because you lack these three things - Money, Experience & Network…Click here to read.

Competitive Advantage

When starting a business, it could be difficult to stand out from the competition or even compete fairly. To do so, you need something that will give you an edge over the competition. This is known as a competitive advantage. Harvard Professor Michael Porter proposed three ways of achieving competitive advantage. These are;

• Cost Leadership

• Differentiation, &

• Focus

Cost leadership refers to the strategy of providing more for less. That is, you give your target customers more value at a price they can’t refuse. This can be accomplished by improving efficiency.

Differentiation is a strategy that involves finding a way to distinguish your product from that of the competition. There are many ways to differentiate your business either in the packaging, delivery, or through customer service.

Focusing on a niche market is also a way of achieving a competitive advantage. This strategy involves dialing in on the underserved community and exploiting the market gap in your industry.

Cost of Capital

This refers to the cost of raising the capital you need to fund your business operations. Unless you are self-funded, the alternative is to borrow some money or find investors who are willing to invest in your business.

Both parties need to know what they stand to gain in return and this is what is referred to as the cost of capital. Putting it simply, it is a measure of how much money your business has to generate to pay for the capital raised.

It helps the business owner to know if an investment is worth undertaking by determining how much profit it can generate.

That’s all for now folks.

Until next time, stay inspired and keep chasing your dreams!

Cheers,

Alex