Get Profitable

This is the 3rd Key Milestone from the Thoughts on Entrepreneurship series…

Profitability = Independence. Raising money is a pain- no matter who you are. It’s time consuming, and it’s a distraction. The sooner you can get to profitability the better. Yes, there’s the Twitter model of Build it and They will Come- worrying about revenues and profits later, but personally, I don’t think that’s what you want to do or how you want to think. Profitability should be a *choice* you can choose not to be profitable- by scaling faster – but fundamentally you should be able to cut (or curtail) headcount and be a profitable business very early in the game- this is ultra important because you never know when the economy is going to take a dip and venture funding is going to dry up. From the minute you take funding, the clock is ticking. And you’d better be running for the profitability line.

Ask any entrepreneur how much better they sleep at night knowing their company is at break even, or profitable. They’ve made it… sure, there’s still work to do to scale further, but they know they made it to first base. They’ve got a chance- and they don’t need anyone’s help (on the financing front) unless they decide they want it.

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