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by ncmncm 2850 days ago
If you aren't incurring losses, it means you are throwing away potential income by growing too slowly, and inviting competitors to take up the slack.

In case of a market or tech hiccup, you might find yourself without "sufficient cash flow", and collapse, but that would be the investors' problem. The investors are assumed to be able to absorb the loss and disappointment without undue discomfort, and so they are. Risk to your dreams takes last place.

2 comments

I understand a lot of silicon valley is funded in this manner right now but please re-read this command and realize how silly it is. It's proper to say that taking a loss for long term gain is sometimes the right measured decision but saying that failing to lose money constantly is a failure is just ridiculous.
There might be a reason why you are not asked to manage a growing business.
Well in their case if they had to they could axe most of their sales and marketing spending, and become cash flow neutral and survive a hiccup.