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There's also the question of your confidence in your relationship with potential investors. Even a company that achieves "Ramen Profitability" is probably going
by nlwhittemore 18y ago
There's also the question of your confidence in your relationship with potential investors. Even a company that achieves "Ramen Profitability" is probably going to need expansion capital at some point, but if their "runway" is infinite because they know they can at least get by with their revenue stream, it puts them in a much better postition to find the right type of investment on the right type of terms.
- tptacek 18y agoMy point is that the "infinite ramen profitibility runway" is a fallacy, since no competent developer has an infinite tolerance for living on ramen.
- nlwhittemore 18y agoSure, but if you have housing covered, work from a shared space like we're talking about, $3,000 a month aint a bad living for just food and bills... More importantly though, you're right - its about extra space and better control not infinite space.
- tptacek 18y agoSo this works until you're about 27. I'm just saying: the existence of shared hacker spaces doesn't make YC more viable if VC collapses, and you have to account for the fact that many people (most people?) will pay attention to money when it's a 3x-5x difference. It's also not that easy to get to the point where a business is making you 40-50k/yr, even though that number sounds low.
- bprater 18y agoJust because you are in your mid-30s and have a family doesn't mean you can't be thrifty. That's a lifestyle choice. Nobody has forced anyone to buy a $750,000 house in the valley and drive 3 SUVs. If your family understood your dreams and was willing to support your ambitions and was ultimately willing to eat Ramen, anyone could make use of this model.
- tptacek 18y agoI guarantee you that being in your mid-30s with a family precludes you from living in a "Hacker Hotel" on $3000 a month. Way to exclude the middle.
- InVerse 18y agoamen. kids are expensive, especially without that fat health insurance package from a real job. i don't assume we shouldn't exclude the middle, except that's where a wealth of experience and wisdom comes from.
- whatusername 18y agothere isn't anything magical about the Ramen profitability point... However - you;'ve been gorwing revenue/profits up until that point - customers wont magically stop appearing as you hit it - so you're likely to go past just living on ramen.