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.

Comments

  • bahis
    December 19, 2020 at 4:55 pm

    I needed to thank you for this great read!! I certainly enjoyed every little bit of it. Darell Raymund Pytlik

  • altyazili
    December 19, 2020 at 8:00 pm

    This is beyond brilliant. It stops time. She must be so proud. Rodie Eugenius Ewald

  • yetiskin
    December 19, 2020 at 9:48 pm

    I visited the 6930 w.alternate Panama City Beach FL. Very clean store and Chassidy was so very nice and friendly. Good job. Great food. Marne Zolly Idolah

  • sikis izle
    December 20, 2020 at 12:31 am

    These tips can help you become the great soccer player that you truly want to be. Larine Merell Teak

  • bluray
    December 20, 2020 at 4:37 am

    There is significantly a package to know about this. I presume you made sure nice factors in features likewise. Joellen Gonzales Cordula

  • ucretsiz
    December 23, 2020 at 7:54 am

    A big thank you for your blog article. Really looking forward to read more. Really Cool. Jackie Ripley Kissner

  • indir
    December 23, 2020 at 9:39 am

    Thank you for the auspicious writeup. It actually was once a amusement account it. Cherrita Haroun Morganne

  • bedava
    December 23, 2020 at 11:13 am

    Excellent post! We will be linking to this great content on our site. Keep up the good writing. Adrienne Onfroi Sidon

  • yify
    December 24, 2020 at 3:18 am

    Everything is very open with a really clear clarification of the challenges. Kalli Ashby Godewyn

  • yify
    January 11, 2021 at 9:24 pm

    This piece of writing will help the internet visitors for building up new website or even a weblog from start to end. Tess Farley Yaeger

  • erotik
    January 23, 2021 at 12:07 pm

    There is certainly a great deal to know about this issue. I like all of the points you have made. Elie Abbot Kirtley

  • yerli film izle
    January 29, 2021 at 2:28 pm

    I admire your piece of work, thankyou for all the great articles . Rafaelita Ettore Ailsa

  • online
    January 29, 2021 at 11:58 pm

    Absolute alluring advice you have remarked, thank you for publishing. Vivie Romeo Olcott

  • torrent
    February 7, 2021 at 8:38 am

    I value the blog post. Really thank you! Want more. Corri Doyle Felisha

  • anime
    February 7, 2021 at 10:28 am

    Wow, great blog article. Really thank you! Want more. Ailey Alexander Sarkaria

  • watch
    February 7, 2021 at 1:10 pm

    It was very useful, I can say it was a useful article for me. Amy Brien Petunia

  • yabanci
    February 10, 2021 at 4:33 am

    This info is invaluable. When can I find out more? Sadye Dom Paris

  • 720p
    February 10, 2021 at 5:03 am

    I enjoy reading a post that can make people think. Also, many thanks for allowing me to comment! Donielle Husain Rior

  • bluray
    February 10, 2021 at 6:07 am

    Excellent blog post. I certainly appreciate this website. Stick with it! Belicia Myles Addam

  • bedava
    February 10, 2021 at 7:16 am

    earliest sooner chirsu.buik.amsterdam/handige-artikelen/voedingsschema-vetpercentage-verlagen.html that an ad libitum grub low-lying in protein and penetrating in carbohydrate has been stereotyped to from the in any holder beyond touch doubt upon as calorie tiomen.ikmooi.amsterdam/leef-samen/biljartkeu-pomerans.html proviso, says Simpson. He says that varied respected protein, lowly carb diets may setting at unfettered people dendis.buik.amsterdam/informatie/fases-proteinedieet.html be poverty-stricken of gradient or maximise fertility, but they could spokeswoman problems in the international term. Anastasie Ulric Leifeste

  • altyazili
    February 10, 2021 at 10:54 am

    Hi there. I discovered your blog by way of Google whilst searching for a comparable subject, your website came up. It appears to be great. I have bookmarked it in my google bookmarks to come back then. Teresa Pearce Rorie

  • indirmeden
    February 10, 2021 at 8:15 pm

    Some genuinely choice posts on this site, saved to fav. Halli Rafferty Lorn

  • turkce
    February 11, 2021 at 2:30 pm

    I carry on listening to the news broadcast speak about receiving free online grant applications so I have been looking around for the best site to get one. Could you tell me please, where could i acquire some? Petronille Bryant Cressida

  • Kvvillmam
    May 8, 2021 at 10:17 am

    [url=https://chimmed.ru/products/n-methylpiperidine-99-id=286817]N Метилпиперидин 99 процентов купить онлайн Интернет магазин ХИММЕД[/url]
    Tegs: N Метил пара толуолсульфонамид 98 процентов купить онлайн Интернет магазин ХИММЕД https://chimmed.ru/products/n-methyl-p-toluenesulfonamide-98-id=294739

    [u]Methyllithium 3 процентов solution in 2 MeTHF cumene AcroSeal купить онлайн Интернет магазин ХИММЕД[/u]
    [i]Methylguanidine hydrochloride купить онлайн Интернет магазин ХИММЕД[/i]
    [b]Methyldiethoxysilane 97 процентов купить онлайн Интернет магазин ХИММЕД[/b]

  • Elba
    June 29, 2021 at 9:19 am

    I like the helpful info you provide in your
    articles. I will bookmark your weblog and check again here regularly.
    I’m quite certain I will learn a lot of new stuff right here!
    Good luck for the next!

    my web site weed gummies

  • Belinda
    June 29, 2021 at 11:18 am

    Thanks for the good writeup. It actually was a leisure account it.
    Look complicated to more brought agreeable
    from you! However, how could we keep up a correspondence?

    my webpage: delta 8 CBD

  • Rayford
    July 1, 2021 at 4:39 am

    Hi to every body, it’s my first go to see of this blog;
    this web site consists of remarkable and in fact
    excellent information designed for readers.

    Here is my web-site :: Observer

  • Shonda
    July 1, 2021 at 9:51 pm

    It’s awesome to pay a visit this site and reading the
    views of all colleagues about this article, while I am also eager
    of getting experience.

    Feel free to visit my website … Best THC Gummies
    http://www.kitsapdailynews.com

  • Gonzalo
    July 4, 2021 at 9:14 pm

    Hi there to every body, it’s my first pay a quick visit of this web site; this blog includes
    awesome and really fine stuff for readers.

    my site – buy weed; http://www.heraldnet.com,

  • Garland
    July 5, 2021 at 8:01 pm

    My family always say that I am killing my time here at net, however I know I am getting know-how all the
    time by reading thes fastidious articles.

    my web site – buy weed online

  • Effie
    July 5, 2021 at 10:08 pm

    I like what you guys tend to be up too. This sort of clever work
    and reporting! Keep up the awesome works guys I’ve
    included you guys to our blogroll.

    Also visit my web page :: weed near me

  • Adrianne
    July 5, 2021 at 10:18 pm

    Have you ever considered writing an ebook or guest authoring on other websites?
    I have a blog based on the same topics you discuss and would really like to have you share some stories/information. I know my readers would appreciate your work.
    If you are even remotely interested, feel free to shoot me an e
    mail.

    my web site Seattle Weekly

  • Penney
    July 6, 2021 at 4:08 pm

    Hi there, I check your blog like every week. Your story-telling style is awesome, keep up the good work!

    Feel free to visit my homepage :: where to buy weed near me

  • Ernestine
    July 7, 2021 at 5:44 am

    Hey very nice blog!

    my webpage :: tiktok followers; http://www.usmagazine.com,

  • Sicfppef
    July 8, 2021 at 4:43 am

    [url=https://signprint24.ru/services/uf-pechat-po-lyubym-materialam/na-dereve/]прямая печать по дереву[/url]
    Tegs: уф печать на дереве https://signprint24.ru/services/uf-pechat-po-lyubym-materialam/na-dereve/

    [u]уф печать белилами на пленке[/u]
    [i]уф печать белилами на прозрачной пленке[/i]
    [b]уф печать на металлизированной пленке[/b]

  • Yvette
    July 8, 2021 at 8:34 pm

    After I initially left a comment I seem to have clicked the -Notify me when new comments are added- checkbox and from now on every time
    a comment is added I get 4 emails with the exact same
    comment. Is there a means you are able to remove me from
    that service? Thanks!

    my blog post: buy weed (Bertha)

  • Lolitepam8458
    July 14, 2021 at 6:00 pm

    XEvil – the best captcha solver tool with unlimited number of solutions, without thread number limits and highest precision!
    XEvil 5.0 support more than 12.000 types of image-captcha, included ReCaptcha, Google captcha, Yandex captcha, Microsoft captcha, Steam captcha, SolveMedia, ReCaptcha-2 and (YES!!!) ReCaptcha-3 too.

    1.) Flexibly: you can adjust logic for unstandard captchas
    2.) Easy: just start XEvil, press 1 button – and it’s will automatically accept captchas from your application or script
    3.) Fast: 0,01 seconds for simple captchas, about 20..40 seconds for ReCaptcha-2, and about 5…8 seconds for ReCaptcha-3

    You can use XEvil with any SEO/SMM software, any parser of password-checker, any analytics application, or any custom script:
    XEvil support most of well-known anti-captcha services API: 2Captcha.com, RuCaptcha.Com, AntiGate (Anti-Captcha), DeathByCaptcha, etc.

    Interested? Just search in Google “XEvil” for more info
    You read this – then it works! ;))

    Regards, Lolitapam1559

    XEvil.Net

  • Lolitepam6298
    July 17, 2021 at 12:24 pm

    XEvil – the best captcha solver tool with unlimited number of solutions, without thread number limits and highest precision!
    XEvil 5.0 support more than 12.000 types of image-captcha, included ReCaptcha, Google captcha, Yandex captcha, Microsoft captcha, Steam captcha, SolveMedia, ReCaptcha-2 and (YES!!!) ReCaptcha-3 too.

    1.) Flexibly: you can adjust logic for unstandard captchas
    2.) Easy: just start XEvil, press 1 button – and it’s will automatically accept captchas from your application or script
    3.) Fast: 0,01 seconds for simple captchas, about 20..40 seconds for ReCaptcha-2, and about 5…8 seconds for ReCaptcha-3

    You can use XEvil with any SEO/SMM software, any parser of password-checker, any analytics application, or any custom script:
    XEvil support most of well-known anti-captcha services API: 2Captcha, RuCaptcha.Com, AntiGate.com (Anti-Captcha.com), DeathByCaptcha, etc.

    Interested? Just search in YouTube “XEvil” for more info
    You read this – then it works! 🙂

    Regards, Lolitapam1883

    XEvil.Net

  • Lolitapam3179
    July 18, 2021 at 5:17 pm

    XEvil – the best captcha solver tool with unlimited number of solutions, without thread number limits and highest precision!
    XEvil 5.0 support more than 12.000 types of image-captcha, included ReCaptcha, Google captcha, Yandex captcha, Microsoft captcha, Steam captcha, SolveMedia, ReCaptcha-2 and (YES!!!) ReCaptcha-3 too.

    1.) Flexibly: you can adjust logic for unstandard captchas
    2.) Easy: just start XEvil, press 1 button – and it’s will automatically accept captchas from your application or script
    3.) Fast: 0,01 seconds for simple captchas, about 20..40 seconds for ReCaptcha-2, and about 5…8 seconds for ReCaptcha-3

    You can use XEvil with any SEO/SMM software, any parser of password-checker, any analytics application, or any custom script:
    XEvil support most of well-known anti-captcha services API: 2Captcha, RuCaptcha.Com, AntiGate (Anti-Captcha.com), DeathByCaptcha, etc.

    Interested? Just search in YouTube “XEvil” for more info
    You read this – then it works! 😉

    Regards, Lolitapam9742

    XEvil.Net

  • Kellie
    July 19, 2021 at 9:14 am

    Hi! I could have sworn I’ve been to this website before but after
    checking through some of the post I realized it’s new to me.
    Anyways, I’m definitely delighted I found it and I’ll be
    bookmarking and checking back frequently!

    My web-site: cbd dog biscuits

  • Gabriele
    July 19, 2021 at 8:01 pm

    Good answers in return of this issue with real arguments and telling the whole thing regarding that.

    Also visit my web blog; cbd gummies for pain

Add a comment