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> costs could only go down 1x but your revenue can go up almost infinitely. Love this. The one caveat though, and why it's important to keep costs low (maybe
by breck 6y ago
> costs could only go down 1x but your revenue can go up almost infinitely.
Love this.
The one caveat though, and why it's
important to keep costs low (maybe
wait until after you sell the startup),
is because when you are profitable, then you are
in control of your time and get to
set your own schedule. Or, in the form
of the above quote: your revenue
can go up to infinity but your time
left is capped at 100.
- yowlingcat 6y ago> and why it's important to keep costs low (maybe wait until after you sell the startup), is because when you are profitable, then you are in control of your time and get to set your own schedule This presupposes that you can get to high marketshare profitability while keeping costs low. That's not always realistic. A more growth-minded competitor can push you out of the market entirely by willing to execute where you won't.
- breck 6y agoYes, you are right. It hadn't yet crystalized in my mind but to clarify my advice is keep your personal cost of living low as a rule of thumb. Optimize for free time over more money. For business, spending money is essential. Ideally try to spend other people's money.