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As generously as I can put it: It's a form of denial that people use when overwhelmed with everything else. There's typically too little real data on what the
by lallysingh 9y ago
As generously as I can put it: It's a form of denial that people use when overwhelmed with everything else. There's typically too little real data on what the money's going to look like until a bunch of things are tried out, each essentially a random variable. So instead of freaking out about that, just bandage over it with some lies to yourself until you can actually start addressing it.
Businesses in well-known markets can start estimating their costs + potential revenue early, and optimize early. But for a business that might "pivot" a few times before finding "fit", how do you do it? You just look at time (runway: burn rate * remaining capital) you have to try stuff.
It's not great, but I can understand why some people do it.
- notyourday 9y agoIf you need to pivot before you are cashflow positive, then you dont have a business and you never had a business. I keep being amazed that total business failures that result in pivots are considered to be successes in the startup world.