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 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.)
If you hire 6 senior sales reps in January at a $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these salespeople 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.
Cookie | Duration | Description |
---|---|---|
_GRECAPTCHA | 5 months 27 days | This cookie is set by Google. In addition to certain standard Google cookies, reCAPTCHA sets a necessary cookie (_GRECAPTCHA) when executed for the purpose of providing its risk analysis. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
elementor | never | No description available. |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
sib_cuid | 6 months | This cookie is set by the provider Purechat. This cookie is used to send data to purechat.com. It helps to connect visitors to the reservation team and to track visitors to stay on portal. |
Cookie | Duration | Description |
---|---|---|
uuid | 6 months | To optimize ad relevance by collecting visitor data from multiple websites such as what pages have been loaded. |
Cookie | Duration | Description |
---|---|---|
4e658227c2010b81d20b7bc21f124518 | past | No description |
56bdba8c18b6677b9a59291703447d25 | 1 day | No description |
woocommerce_recently_viewed | session | Description unavailable. |
wp_woocommerce_session_e2bd2a987be2e39849516930e8863881 | 2 days | No description |