5 ms·

I don't wish to be overly mean or uncharitable, but I don't really think anyone who is unable to figure out the advice offered in the section titled "Some tips

I don't wish to be overly mean or uncharitable, but I don't really think anyone who is unable to figure out the advice offered in the section titled "Some tips on reducing burn" all by themselves is ever going to be able to run a successful business.

jacquesm 11y ago
You'd be surprised how many people that are perfectly capable of running a business when things are going well and the company is expanding are totally clueless to running that very same company when it is contracting. The best thing for someone in a situation like that who is unable to handle it is to pass the helm as soon as is feasible to someone who does because otherwise it will be 'game over' in short order. So it is very well possible to run a successful business without being able to figure out how to reduce burn, the problem is that success is never forever.
- danieltillett 11y ago
  Yes money solves lots of problem and fixes all sorts of bad decisions - much like how a marriage is fine until unemployment hits. I agree 100% that there is a need for different management approaches between foot-to-the-floor growth and surviving hard times. It is a rare person that excels at both. Having lived through both, I am better at the later, but the former is much more fun.
pbreit 11y ago
Probably true but there are still a lot of founders out there who reject or deny this or are simply oblivious.
- tacos 11y ago
  But they're somehow going to be smart enough to Google "how to reduce burn" ... and stumble upon this article? And then act on it?
  - pbreit 11y ago
    Probably the other way around: this article finds them (hopefully).
patio11 11y ago
Some people need to hear it spelled out that "Failure to hit a milestone for the company will mean you are forced to go to people who you consider friends and say 'I'm sorry. You're an excellent engineer and have done everything we've asked of you. No company could have asked for better. We appreciate the long nights and sacrificed weekends. We hope you will think of these years fondly. You're fired. Your last check will be paid immediately; there will be no more checks. I hate doing this. But that doesn't change the math: you're still fired. Nothing either of us hope or say can change the fact that you're fired, over what is potentially a screwup out of anyone's control but, since I am a responsible businessman, I'm going to own the fact that no one is firing you but me.'" It's easy in the intoxicating aroma of the Valley, particularly when you're a first time founder who quite recently had a million dollars in the bank, to imagine that your second million dollars will come as easily as the first did. But the first was raised on dreams, and when you're coming up to your A round you have to replace dreams with metrics. If you don't have the metrics, you will not be offered an A round. This means hard choices which all suck. Founders need to be told this early and often. Running out of money kills companies; practically speaking only running out of money or running out of will to continue can kill a company. That will not be a pleasant experience under any circumstances. Do not run out of money.
- ScottBurson 11y ago
  Why do you suggest the term "fired" instead of "laid off"? The latter seems rather more appropriate.
  - danieltillett 11y ago
    I can’t speak for Patrick, but there is actual value in calling lay offs what they really are (firings) so you avoid falling into euphemistic thinking. The whole reason we have the babble of management speech is people are avoid facing up to what they are really doing. When you fire some to save the company be honest about it and don’t pretend you are giving them the “chance to pursue other opportunities”.
    - 11y ago

jacquesm 11y ago

You'd be surprised how many people that are perfectly capable of running a business when things are going well and the company is expanding are totally clueless to running that very same company when it is contracting. The best thing for someone in a situation like that who is unable to handle it is to pass the helm as soon as is feasible to someone who does because otherwise it will be 'game over' in short order. So it is very well possible to run a successful business without being able to figure out how to reduce burn, the problem is that success is never forever.

danieltillett 11y ago
Yes money solves lots of problem and fixes all sorts of bad decisions - much like how a marriage is fine until unemployment hits. I agree 100% that there is a need for different management approaches between foot-to-the-floor growth and surviving hard times. It is a rare person that excels at both. Having lived through both, I am better at the later, but the former is much more fun.

pbreit 11y ago

Probably true but there are still a lot of founders out there who reject or deny this or are simply oblivious.

tacos 11y ago
But they're somehow going to be smart enough to Google "how to reduce burn" ... and stumble upon this article? And then act on it?
- pbreit 11y ago
  Probably the other way around: this article finds them (hopefully).

patio11 11y ago

Some people need to hear it spelled out that "Failure to hit a milestone for the company will mean you are forced to go to people who you consider friends and say 'I'm sorry. You're an excellent engineer and have done everything we've asked of you. No company could have asked for better. We appreciate the long nights and sacrificed weekends. We hope you will think of these years fondly. You're fired. Your last check will be paid immediately; there will be no more checks. I hate doing this. But that doesn't change the math: you're still fired. Nothing either of us hope or say can change the fact that you're fired, over what is potentially a screwup out of anyone's control but, since I am a responsible businessman, I'm going to own the fact that no one is firing you but me.'" It's easy in the intoxicating aroma of the Valley, particularly when you're a first time founder who quite recently had a million dollars in the bank, to imagine that your second million dollars will come as easily as the first did. But the first was raised on dreams, and when you're coming up to your A round you have to replace dreams with metrics. If you don't have the metrics, you will not be offered an A round. This means hard choices which all suck. Founders need to be told this early and often. Running out of money kills companies; practically speaking only running out of money or running out of will to continue can kill a company. That will not be a pleasant experience under any circumstances. Do not run out of money.

ScottBurson 11y ago
Why do you suggest the term "fired" instead of "laid off"? The latter seems rather more appropriate.
- danieltillett 11y ago
  I can’t speak for Patrick, but there is actual value in calling lay offs what they really are (firings) so you avoid falling into euphemistic thinking. The whole reason we have the babble of management speech is people are avoid facing up to what they are really doing. When you fire some to save the company be honest about it and don’t pretend you are giving them the “chance to pursue other opportunities”.
  - 11y ago