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> You know what kind of companies generally survive? Companies that make more money than they spend. I know, duh, right? If you make more than you spend, you ge

> You know what kind of companies generally survive? Companies that make more money than they spend. I know, duh, right? If you make more than you spend, you get to stay alive for a long time. If you don’t, you have to get money from someone else to keep going. And, as I just said, that’s going to be way harder now. I’m embarrassed writing this because it is so flipping simple, yet it is amazing to me how many entrepreneurs are still talking about their plans to the next round. What if there is no next round? Don’t you still want to survive? Sort of reminds me of the conversation with a senior developer I had the first time I joined a startup and my first company lunch at my first job. Me: "So, we just spend whatever money the company makes" him: "Correct" Me: "what if the company is burning all the money it makes to grow as fast as possible, and they can't raise money anymore?" him: "that will never happen" Me: (concerned) "so the company is constantly breaking even" him: "sometimes" ME: (shocked) "so the company loses money some year, yet raises more money year after year so it can lose more money the following year than the last" him: (annoyed) "you studied economics haven't you? you dont get it? everyone knows this is how you do startups what did they teach you in that shithole?" (everyone else laughs) end scene. That was 4 years ago. I checked the glassdoor comments and boy I didn't think a 2.1 rating was possible on glassdoor because that would pretty much scare off anyone in the job market....and yup the company is going under exactly for the reasons I asked 4 years ago but was ridiculed at my 'ignorance' another one bites the dust for vancouver's brain drained tech scene. thank god I won't have to work here again in the near future.

CPLX 11y ago
Ah, memories. In 1999 I was working for a soon to be doomed music startup, and recall being at a lunch with the founder, who was even younger than me in my early 20's glory. He was quite impressed with himself having raised $1MM and hired a team of 20-30 or so of us. Me: [Suggesting we should consider a couple things that would give us some revenue, and be mindful of spending] Him: Listen, you're pushing it here. No offense to your economics degree but it's not like you've founded a business that's made more money than I have. Me: Of course I have. Him: When exactly did that happen? Me: I ran a profitable lawn service business. I don't know the exact figure but we netted thousands of dollars over the lifetime of the business, which is about half a million dollars more than this business, as far as I can tell. Him: [Grrk, change the subject...]
BinaryIdiot 11y ago
That practically triggers PTSD from some of my experiences with similar types of people. I know in start-ups making revenue is a bit of a dirty word but that's what the business is ultimately supposed to do anyway! Why the hell not build to support the revenue model(s) early so you can turn them on and test them as soon as possible? better to test your bets early before you're laying off hundreds of people because your guesses ended up being wrong.
- mindcrime 11y ago
  I know in start-ups making revenue is a bit of a dirty word but that's what the business is ultimately supposed to do anyway! I keep a note to myself positioned prominently nearby, titled "The Most Important Question". I wrote down something for "Question One" when I first put it up, but shortly after I went back and wrote in "Question Zero". "What is the single most important thing I can be doing right now, to get us to revenue?" (And no, "posting on HN" isn't a very good answer to that question, so shame on me). Hey, I won't claim to manage to adhere to 100% absolute razor-sharp focus on that point, but I keep coming back to it. When I find myself starting to bikeshed or work on some "cool but speculative" idea, I remind myself "work on what's going to bring dollars in the door first".
Terr_ 11y ago
That sounds like it could be a "Clarke and Dawe" skit. https://www.youtube.com/watch?v=3m5qxZm_JqM https://www.youtube.com/watch?v=3m5qxZm_JqM

CPLX 11y ago

Ah, memories. In 1999 I was working for a soon to be doomed music startup, and recall being at a lunch with the founder, who was even younger than me in my early 20's glory. He was quite impressed with himself having raised $1MM and hired a team of 20-30 or so of us. Me: [Suggesting we should consider a couple things that would give us some revenue, and be mindful of spending] Him: Listen, you're pushing it here. No offense to your economics degree but it's not like you've founded a business that's made more money than I have. Me: Of course I have. Him: When exactly did that happen? Me: I ran a profitable lawn service business. I don't know the exact figure but we netted thousands of dollars over the lifetime of the business, which is about half a million dollars more than this business, as far as I can tell. Him: [Grrk, change the subject...]

BinaryIdiot 11y ago

That practically triggers PTSD from some of my experiences with similar types of people. I know in start-ups making revenue is a bit of a dirty word but that's what the business is ultimately supposed to do anyway! Why the hell not build to support the revenue model(s) early so you can turn them on and test them as soon as possible? better to test your bets early before you're laying off hundreds of people because your guesses ended up being wrong.

mindcrime 11y ago
I know in start-ups making revenue is a bit of a dirty word but that's what the business is ultimately supposed to do anyway! I keep a note to myself positioned prominently nearby, titled "The Most Important Question". I wrote down something for "Question One" when I first put it up, but shortly after I went back and wrote in "Question Zero". "What is the single most important thing I can be doing right now, to get us to revenue?" (And no, "posting on HN" isn't a very good answer to that question, so shame on me). Hey, I won't claim to manage to adhere to 100% absolute razor-sharp focus on that point, but I keep coming back to it. When I find myself starting to bikeshed or work on some "cool but speculative" idea, I remind myself "work on what's going to bring dollars in the door first".

Terr_ 11y ago

That sounds like it could be a "Clarke and Dawe" skit. https://www.youtube.com/watch?v=3m5qxZm_JqM https://www.youtube.com/watch?v=3m5qxZm_JqM