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>>"Success" is such a vague concept Actually its not in terms of business. Success = Profit + Long term sustainability in doing so.
by 31reasons 12y ago
>>"Success" is such a vague concept
Actually its not in terms of business.
Success = Profit + Long term sustainability in doing so.
- untog 12y agoSuccess can also be short term growth and being bought by a larger company, in this industry.
- yesimahuman 12y agoSuccess is the most loosely defined, illogical concept in the startup world. When your friends are raising big rounds, you think they are successful, even though most of them won't survive beyond the runway that round gives them (esp. at that stage). Yet the media and the community celebrates founders for all sorts of things and call it "success" when it's not. So yes, it's incredibly vague, and the existence of an accounting formula means nothing in the founder psyche.
- CPLX 12y agoActually it's not that either. Success in a business context means a positive rate of return on the resources invested. Or to refine one step further, a return that is positive and superior to the next best alternative for the deployment of said resources at a given level of risk.
- 31reasons 12y agoSo Profit.
- CPLX 12y agoProfitability and return on investment are related concepts but are not the same thing. Instagram, among many others, most certainly generated ample return on its initial invested resources without ever generating profits.
- GoLocalApps 12y agoROI /= Profit. See Amazon (or as noted below, Instagram). However I also think that is a problem for many people who want to startup. They don't usually think about how they'll show a profit and manage to run their business within that profit. Investor money gets them started and an exit by selling an unprofitable yet growing business to a larger company is the goal.