[ahaucnx]

I am not sure if I agree.

In turn this would mean that if a company is profitable, it can have a nice office and spend more money into "unnecessary" things?

Wouldn't it be better to reinvest that profit into the business to make it even more profitable and grow it?

Doesn't the story somehow imply that as soon as you are profitable you can rest on your success? For me that could mean the beginning of the end.

I think you should provide a decent office to your employees to be productive without unnecessary luxuries and it doesn't really matter if the company is profitable or not.

[qazxcvbnmlp]

If a company is profitable they have an earned sense of where it makes sense to spend the profits for betterment of the company. The (I could take this as company earnings to my pocket but choose to spend it on employees) signals maturity while (I am spending someone else’s money on luxuries) signals lack of understanding what’s important for the business.

The difference isn’t the actual luxuries, it’s the amount of skin in the game from the founder.