Should startups care about profitability? More news at 10

There are certain topics that even some of the smartest people I talk with who aren’t startup oriented can’t fully grok. One of them is whether profitability matters. It’s common cocktail party chatter to hear people confidently pronounce that some well known startup is sure to blow up.

Or you know the other one — the one where Snapchat lost $2 billion in just one quarter. Two-fucking-billion! What a disaster! Except that they didn’t actually lose $2 billion in cash. It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. (They actually lost about $175 million in cash in that quarter, FWIW. See appendix if you want to know more on this.)

“How could they succeed when they’re not even profitable!”

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business for 6 months. Your profitability will go down for 2 quarters while your growth may increase dramatically in quarters 3–12.
I know this seems obvious but I promise you that even smart people forget this when talking about profitability. 70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue.


  • Victorblasp45678
    August 25, 2022 at 7:06 am

    “The next time I read a blog, Hopefully it does not fail me as much as this particular one. I mean, I know it was my choice to read through, however I actually thought you’d have something helpful to say. All I hear is a bunch of moaning about something that you can fix if you were not too busy searching for attention.”

  • HenryFloot
    August 26, 2022 at 5:53 am

    My daighters learn to speak with American accent course online continues to be began working by my cousins. My Husband actually recieved the revelation of hearing the Booming command of St Jeronimo the dreary October morning in 2005… “American englsih accent!”

    Nine moons in days past an Egyptian English student online started comenting and asked, “are you going to instruct the South African accent teachers to read English Excellent? Will anyone come over and instruct online my dyslexia tutors to study How to teach English in south amercia?” Take a look [url=][color=#000_url]english basics[/color][/url]

  • KeithLat
    August 28, 2022 at 9:13 pm

    50 of the best street foods in Asia
    Plane failed to descend as pilots reportedly fell asleep during flight
    The coworkers who fell in love when they shared a hotel room
    Europe’s most beautiful towns
    US couple transforms abandoned Italian house into dream home with an elevator
    Sign up for our 9-part Italy travel and food newsletter

    [url=]омг актуальная ссылка[/url]

  • Gorofuern
    August 31, 2022 at 2:17 am

    windows phone 7 cialis of smartphones where can i buy stromectol ivermectin online Cialis Se Puede Tomar Alcohol

  • Charlessen
    September 1, 2022 at 10:14 pm

    [url=]droghe psicotrope[/url] Opium, lot gratuit

  • EdwardPoona
    September 7, 2022 at 12:59 pm

    Let’s help Ukraine! You can:
    One of the methods:
    1. Join the Ukrainian IT-Army and carry out cyber attacks on Russian websites (instructions inside).
    Telegram channel: , website:

    2. Join a group to block Russian propaganda on social media. Telegram channel: StopRussiaChannel

    3. Make a donation for Ukrainian volunteers and the army:
    International bank transfer, IBAN: UA443052990000026201892876705
    WebMoney: Z234666128033
    Bitcoin (BTC): 1HZYfd4bNzvtSnU8wqtAFvRrZ2rynFjY5Q
    Ethereum (ERC20): 0x4b1caeba49ae3e5789a483ae2739c87da1a9bdfa
    USDT, Tron (TRC20): TCAYhcdbFThA6kMFns36AYKKid6iJPDaM3
    Metamask: 0x7cF795bc7E891996692e4d4BAc473c8d5fdC4243
    Coinbase Wallet (ETH): 0x75fa8Dfb36a355F79DF2845d051276824d11CAcC

  • LouisDouth
    September 10, 2022 at 1:37 am

    Hi fellow readers. My friends and I are happy we saw this site. I’ve been scanning for this info for weeks and I will be telling my sisters to drop by. The other day I was traversing through the search engines trying to locate the answers to my eternal questions. Now I am entrusted to take more responsibility in whatever path I can. We are getting all nerded out on the smart ideas we are observing. Moreover, I just had to thank you deeply for such uplifting information. This has forced me out of a tough situation. Many beautiful improvements are sprouting in my world. Its really a safe area to make new engagements. Allow me to share that I am into. If you have time, take a look my new spot:[url=][color=#000_url]weddings at magnolia plantation around Naples FL[/color][/url]

  • Williamsam
    September 10, 2022 at 10:15 pm

    OVI charges neccesitate complete total of the master secrets most used in criminal trials. protecting a DWI is initiated with making sure none of one’s constitutional rights have been abused. When law enforcement is in direct contact with you, and they are basically the single witness most of the time, their specialized education and MO is of the nature. We all make accidents, and the law are no no exception to the rule. The Occasion happens with reasonable accusation that will lead to obvious cause. An example, a person gets flashed over for driving too slow at 1 am. The police officer has the usual suspicion that you committed a moving violation, passingon a double yellow. then, when the police tries to make eye contact or leans in closer to your automobile, she may exclaim you exhibit red eyes, or there is an odor of liquor. This elevates the acceptabel suspicion of speeding to giving a police a clue that someone may be operating while drunk. eighty% of law enforcement will say odor of liquor, red eyes, or slurred talk. The police may usually say you are rumaging around trying to get your drivers license and insurance card out. At this point the person driving is likely commanded to step out from the auto and do regular field sobriety checks. These are SFST’s are taught under NHTSA (National road Traffic Safety Administration) regulations and need to be followed per instance. If you do perform the tests, the police can make mistakes that can make the check, or tests thrown out of from evidence. Things such as physical impairments and the best field conditions can be factored amoung the results of your test. (i.e. someone can’t do a hop and a skip and turn check on ramped sidwalk). Someone will also take a breathalyzer test. There are accidents in these gadgets as well, and they are technolgo that need to be maintained and training on regularly. The arrest is captured from the time the officer turns on their sirens. It is through this taped footage we are able to inform an learned choice if the law enforcement performing of the tests, to the accused performance taking the tests. Whether you give an OK to the manipukations or not, one may go to lock up. If you know someone that has been incarcerated for OVI or any criminal charges or know some one who needs a criminal defense Attorney check out my site rgiht here [url=][color=#000_url]dui attorney near me[/color][/url] Thanks

  • JohnnySpino
    September 11, 2022 at 12:58 pm

    Hello my name is Matt D’Agati. A crowd of job seekers are unsure mapping professional resume drafting professionals constitutes a good investment and this is a proper investigation, so we must first analyze a modest count of of the general results that are connected with company presidents that make the prerogative and hire a on-the-ball professional resume builder company.
    We should commence this subject by noting that the website for an employment network labeled Ladders, writes that commuting a resume sculpted by a resume sourcing nursery about any encountered job ad strengthen that man’s possibilities of being hired by 40%. As said, offering a excellently formulated resume to effectively all online institutional vacancy position increases this applicant’s chances of wrangling an rendezvous by 41%.

    Seriously, having an excellent resume that is put together by a award-winning resume writing company guarantees a katana -sharp competitive fire to professional level employment hunters and notably executive -level employment searchers, therefor conclusively every notable professional resume creator organization also makes excellent and effective LinkedIn profiles concomitantly excellent resumes. Make no mistake about it, going through finding a resume that is fittingly -written or properly engineered is perhaps the most needed way point of any job quest, and obtaining an equally strong Social Media presence is confirmedly somewhat less important in the hierarchy of landing a position.[url=][color=#000_url] Matthew D’Agati – Renewables Worldwide, Inc.[/color][/url]

  • HenryFloot
    September 12, 2022 at 9:33 am

    My daighters learn to teach English online course continues to be began working by my grandfather. a friend of my mothers actually had the privilege of taking into accord the fatherly voice of The president of Rome the dark May noon in 2000… “Learn accents online!”

    Seventy moons in time past a Russian administrator of Dyslexic tools for adults showed up and was overheard saying:, “is it a reality that show my Eastern American Accent tutors to read American English Super? can someone attend and instuct my English students to tutor Websites to learn English to kids?” look up [url=][color=#000_url]english language pdf online[/color][/url]

  • RichardMic
    September 13, 2022 at 5:19 am

    [url=]free hardcore movie[/url] slut tube present pleasant time spending

  • EvaBeams
    September 13, 2022 at 3:22 pm

    [url=]trazodone 10mg price[/url]

  • BooBeams
    September 13, 2022 at 3:39 pm

    [url=]tetracycline 3[/url]

  • TimothyAnare
    September 13, 2022 at 4:18 pm

    [url=]medication finasteride 5mg[/url]

  • Alvinreeri
    September 14, 2022 at 4:05 am

    Hire the Best remote software developers
    When deciding whether or not to hire a remote developer, factors such as the project’s complexity and the developer’s skills should be considered. There are many benefits for employers and their employees when using a performance-based compensation system. As a bonus, hiring a remote developer brings benefits to the global environment that we all need to work to protect.

    What’s the Process for Hiring Remote Developers?
    Discover the Proper Work Board and Post Your Posting
    Sort Through the Applications
    Pay Consideration to the Cover Letter
    The Interview
    Assessment and Testing
    It goes without saying that any farther designer you contract ought to be talented at programming. In any case, that isn’t the only thing they have to be be talented at. Hunt for individuals with these five characteristics to create beyond any doubt you’re getting a well-rounded worker with remaining control.

    [url=]find ios developer[/url]

  • EdwardReeta
    September 14, 2022 at 5:45 am

    Hello my name is Matthew D’Agati. A large amount of Job candidates remain unsure expediting professional resume writing outfits equals a mindful asset and this is a fitting riddle, so we ought to first take a look at a mouse’s share of of the common results that originated with CEO’s which make the commitment and use a reputable knowledgeable resume writer company.
    We should commence this subject by citing that the site for an employment network named Ladders, records that logging a resume honed by a resume help orchard pertaining to any heard job notice invigorate that worker’s prospects of being hired by 300%. Further, uploading a expertly formulated resume to effectively any online working vacancy position increases that same applicant’s chances of earning an symposium by 41percent.

    The wisdom of the ages is, having a flush resume that is infused by a top resume writing bureau finalizes a sword -sharp competitive flame to professional level job seekers and notably CEO -level employment searchers, let it be said that conclusively every serious professional resume scribe organization also makes excellent and effective online profiles as well as notable resumes. Know it, going through finding a resume that is perfectly -written and professionally developed is perhaps the most imperative aspect of any job quest, yet obtaining an equally grounded Social Media presence is really marginally less mandatory in the schema of things.[url=][color=#000_url] Matt D’Agati[/color][/url]

  • JamesWak
    September 15, 2022 at 2:39 am

    Ciao dear friends. My friends and I are really glad we saw this site. Ive been web crawling for this info for a long time and I will be encouraging my bro to hop on by. The other afternoon I was blazing through the available sites trying to determine an answer to my tough questions. Now I am going to take it to the next level in whatever form I can. We are getting all worked out on the varied advice we are observing. Moreover, I just desired to thank you deeply for such uplifting information. This has propelled me out of an old rut. Many exciting improvements are shaping around my world. Its really a super area to make new great effect. I gotta mention also that I am researching. when you get a chance, take a look my new Site:[url=]best work light for drywall near WHITTIER CA[/url]

Add a comment