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# Overheard : Good business vs Bad Business
- URL: https://kudithipudi.org/overheard-good-business-vs-bad-business/
- Published: 2025-01-08T14:49:52.000Z
- Updated: 2025-01-08T14:49:52.000Z
- Description: A simple visual of attributes of Good business vs Bad business based on a snippet Codie Sanchez shared in a podcast with Shane Parrish ✅ GOOD...
- Author: admin
- Tags: business, OverHeard, Management, #wp, #wp-post, #Import 2026-08-23 02:32

A simple visual of attributes of Good business vs Bad business based on a snippet [Codie Sanchez](https://codiesanchez.com/about/?ref=kudithipudi.org) shared in a [podcast](https://fs.blog/knowledge-project-podcast/codie-sanchez/?ref=kudithipudi.org) with [Shane Parrish](https://fs.blog/about/?ref=kudithipudi.org)

## ✅ GOOD BUSINESS

- 💰 Profitable + Cash flowing
- 🤝 Get paid upfront
- 📈 Long history of success
- 👵 Easy to explain to grandma
- ♻️ Sustainable model
- 🎯 Predictable future

## ❌ BAD BUSINESS

- 📉 Unprofitable
- ⏳ Pay comes after service
- 🌱 New/unproven model
- 🤔 Complex to explain
- 🎲 Uncertain future

Codie said

> In my definition, good business equals profitable, cash flowing, what I call a cash-flow versus cash-suck business (so you get paid upfront for a service, not after you provide a service), sustainable (it can exist for a long time), historical (it has existed for a long time), understandable (you can explain it to grandma really easily), and you have what’s called the Lindy effect, the likelihood of the future continuing to cash-flow just as it did in the past. Those are my parameters for a good business. A bad business would be a business that is unprofitable, hard to understand, hasn’t been around for very long, and you have to provide the service before you get paid for the service. That is a business that is just much harder. That’s a harder game to win.