3 ms·
eh, the thing about margins of safety is that when done properly, they let you recover from mistakes, which lets you take risks more often. I see a break-eve
by lsc 11y ago
eh, the thing about margins of safety is that when done properly, they let you recover from mistakes, which lets you take risks more often. I see a break-even business as a 'save point' almost - you can go and put effort then into this or that or the other that might or might not work out, but as long as you've got the break even business paying everyone's rent, you fall back to a place where you still have all your infrastructure ready to go for your next try.
If your company is 'default dead' as it were, a schedule slip (a slip past the end of your runway, that is) means, at best, bankruptcy and starting over.
And really, you want some safety built into that too- if you screw up your taxes, or screw up your corporation badly enough, failure can mean personal bankruptcy, or if it is a tax matter, something much worse than personal bankruptcy.