3 ms·

Basically anyone at or near profitability can weather most storms

• aaroninsf 11y ago
  In the immortal words of Mr Schrute, "false." Profitability depends on a network of flowing capital. When the input (e.g. of venture funding) dry up, profits will vanish in a shockwave. That is dramatically true for companies whose business model is to provide services and products for either other companies in the network... ...but also for those catering to their employees. IMHO a lot of 'problems' which seemed to cry out for an 'app' solution are going to turn out to be first world problems no longer pressing when the economy turns. Then there's the fact that there are a lot of ugly weather patterns nationally and globally brewing... Hold on, Toto!
  • SilasX 11y ago
    Er, what? If they're profitable, the further capital and financing becomes a nice-to-have, not a need-to-have. It's no longer a business killer when it goes away.
    • Blackthorn 11y ago
      The point is that the storm will take their income streams (customers) away from them, making them no longer profitable.
• exw 11y ago
  Exactly, and this is especially true for companies that are disrupting existing players by being more efficient (e.g., I would expect more travelers to turn to AirBnB during a recession as a cheaper alternative to a hotel, even if overall travel goes down).