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Besides, you run the real existential risk of getting your margin cannibalized by another startup or Amazon if you don't grow enough. In a world where you pay e
by icelancer 5y ago
Besides, you run the real existential risk of getting your margin cannibalized by another startup or Amazon if you don't grow enough. In a world where you pay everyone a lot of money, the product is awesome, and there's no growth, there's a lot of margin in your product that someone is going to target - some subset of customers you aren't serving, or customers who aren't that loyal and willing to switch for 20-50% lower costs.
I'm not saying VC funding is a good thing; I largely think what we are seeing due to massive QE is malinvestment on a grand scale and is why you see dumb shit like Juicero.
But natural, bootstrapped growth is a good thing - and necessary, if you want to survive. Trending sideways is waiting for death on many fronts - your labor force being the largest one.