Project-based companies operate on a cash flow mindset, accepting any custom work that brings in immediate revenue. A true product company uses an investment mindset, strategically saying 'no' to short-term revenue to invest in building a scalable asset that can win a market long-term.

Founders can waste time trying to force an initial idea. The key is to remain open-minded and identify where the market is surprisingly easy to sell into. Mercor found hypergrowth by pivoting from general hiring to serving the intense, specific needs of AI labs.

A common mistake among new creators is spending early profits on luxury goods instead of reinvesting in the business. The most effective use of that capital is hiring people to scale operations. This accelerates the path to long-term wealth and achieving your dream, rather than just the appearance of success.

High customer concentration risk is mitigated during hypergrowth phases. When customers are focused on speed and market capture, they prioritize effectiveness over efficiency. This provides a window for suppliers to extract high margins, as customers don't have the time or focus to optimize costs or build in-house alternatives.

Escape the trap of chasing top-line revenue. Instead, make contribution margin (revenue minus COGS, ad spend, and discounts) your primary success metric. This provides a truer picture of business health and aligns the entire organization around profitable, sustainable growth rather than vanity metrics.

Use gross margin as a quick filter for a new business idea. A low margin often indicates a lack of differentiation or true value-add. If a customer won't pay a premium, it suggests they have alternatives and you're competing in a commoditized space, facing inevitable margin compression.