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Of course it's not any different. But the focus has changed. When you're an early stage startup, a 0.7% overhead for junk food (made up number, but that's pro
by ajross 4y ago
Of course it's not any different. But the focus has changed. When you're an early stage startup, a 0.7% overhead for junk food (made up number, but that's probably not too far off) is a fundamentally negligible thing. It's like 3 days of runway, if that.
Basically: who cares, the company will live or die based on products and funding rounds, and you're just trying to make the company not die at this stage.
But to an established company trying to make money, 0.7% of revenue is a huge (seriously, huge) line item in a CFO's accomplishment list. Consistent profitability is built on a long, grueling ladder of tiny incremental bean-countings. And to an established company trying to make money, that's where the focus turns. And those are the employees who get rewarded.
It's not that either side is "right", it's that they have opposing priorities and that growing companies need to manage that tension and not just give in to the temptation to lock the soda machine.
- bryanrasmussen 4y ago>But to an established company trying to make money, 0.7% of revenue is a huge (seriously, huge) line item in a CFO's accomplishment list. Ok, that seems pretty weird right there, 0.7% overhead of an early stage startup is now 0.7% of revenue even though we agree it is just increasing as the same rate of hires? In other words while each new programmer hired will drink the same amount of soda as the others it should be evident that the percentage of revenue would be decreasing, otherwise they have some serious problems that getting rid of free soda will not fix.
- kurupt213 4y agoOnce a company is focusing on saving to profits instead of revenue growth it’s over.