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>There's another useful way to look at this mathematically and practically: survival time. If you cut costs to nearly zero, you can survive nearly infinitely.
by treis 6y ago
>There's another useful way to look at this mathematically and practically: survival time. If you cut costs to nearly zero, you can survive nearly infinitely.
Only if you don't enjoy doing things like eating food and living indoors.
- DiggyJohnson 6y agoYou are needlessly missing the point. GP is referring to a tradeoff between cost and survival time, a continuum. Obviously businesses and individuals cannot really reduce costs all the way to 0.
- treis 6y agoThe point is that you need to count time spent by the founders as an expense. Roughly somewhere between 15-20k per month per founder. Even if you're surviving by eating ramen in your parents basement there's still an opportunity cost from not having a job. You have to account for it.
- makeee 6y agoI’d argue that most people absolutely should not account for it. There’s enough to stress out about when trying to get your startup off the ground. The idea that your “spending” 2Ok a month due to opportunity cost is not helpful and probably likely to lead to burnout. On the other hand, saving a little money and knowing you’ve extended your runway an extra 3 months can be very helpful.
- deleted 6y ago[deleted]