Sunday, March 31, 2013

The 'break even' death spiral

Isn't achieving break-even the best thing to happen to a startup? You are generating enough cash to fund your operations and even generate cash profit. As a founder, you should be proud.

Or is it?

As a founder, achieving cash break-even should be a milestone towards the destination, not the final destination itself. She should constantly challenge herself and the team:
- How sustainable is the current cash flow?
- Where should I invest the cash? Is the path to growth clear? Is cash flow distracting you from the overall vision of the company?

Early success and cash might take you into a slumber. It might be the right time to rock the boat, and take company to the next level.

1 comment:

Anonymous said...

Why She? Are you feminist? Be cosmo, say S/he :P