[jonnathanson]

"Little things like free food and ping pong tables actually offer a massive return on investment."

Yes, provided everything else about the company is working. People are productive. The product is showing signs of fit. People believe in the founder(s)' vision and in the CEO's direction. Under these circumstances, things like ping pong tables and free meals can offer amazing ROI.

But when your first few business moves are shopping for fancy digs and filling the space with ping pong tables, your priorities are questionable. Morale can't be bought with trinkets. Morale is earned with a strong sense of collective mission and product traction. The rest is icing on the cake.

This distinction is often lost on people, who rush off to buy foosball tables as though the mere presence of such will trick employees into being happy and productive. It's a very '90s attitude: "People want to work for a startup that looks startupy." Well, sure. But the best people want to work for a startup that has a real shot at success, first and foremost.