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Do you think the degree to which a company succumbs to one of these "pathologies" matters? Is it a matter of timing (i.e. becoming successful faster than they b
by wrkronmiller 6y ago
Do you think the degree to which a company succumbs to one of these "pathologies" matters? Is it a matter of timing (i.e. becoming successful faster than they become moribund)?
What do you think differentiates a company that becomes "mature" vs one that flames out?
- freeone3000 6y agoMature companies, notably, make a profit. Not a future profit, not an expected profit, not profit-discounting-advertising, a right-now end-of-year no-accounting-tricks more revenue from sale of goods than expenditures from all sources. I'm going to take a page out of the IRS handbook, and say that they have made a profit for the last three out of five years, in fact. Let's take that a step further and say that they've existed for five years. Their primary method of financing operations is not private equity, but public equity or loans. Once a company looks like this, it's pretty well set.