True artists are always growing, improving, and finding new techniques. Business is art. With each business cycle there are always opportunities to raise the bar. This could be more fine-grained sales, more reliable technology, actualized marketing, coordination within departments, or expansion of the production volume due to profits in the previous cycles.
Quite important to remember these improvements may be focused on two vectors: survivor or growth.
Today’s environment of higher interest rates drives incentives from building a business of funding flows to a business which needs to demonstrate net positive cash flows. Hence, survivor mode during earlier uncertain days between A, B, and C rounds is directly linked to buying more cycles before the next one. This gives time needed to address vagueness of product market fit.
For more mature companies here comes Madam Frugality as at this stage small additional net negative expense per engineer may result in a behavior repeated day after day by hundreds, or even thousands of their colleagues. Stay thrifty my friend, and direct capital toward lighter and more growth-focused cycles. Afterall, if you are buying something you don’t need today, you will have to lose something you need later.
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