Stop caring about profitability
VCs don't care, investors don't care, customers don't care...why should you?
A business should be able to support itself and its staff sufficiently? Customers care about company longevity because ongoing support is important? Employees want to be in a work space that is designed to keep them around?
These are tired old cliches that make no sense in today’s business environment.
What we care about is growth. As long as you’re growing by whatever metric you choose you have the ability to create a narrative that attracts investors and customers alike. The rest will solve itself.
In the “old days” things like warranties and ongoing support were important to the customer experience. That’s garbage now. In a world of the vapid and ephemeral customers want their thing as cheap as possible (ideally free) and it only needs to work for 20 minutes. And if it doesn’t they’ll totally write a scathing Amazon review…but probably not.
And what investors? Profits DEFINITELY don’t matter there. In fact, any hint of profitability is an indication of startup failure. We need unicorns where the amount of capital raised dwarfs the potential earnings of a business for years to come. Its all about those payouts 10 years down the road when we have monopoly control.
Give me an Uber who has never turned a dollar of profit, and I’ll give you my $10. (Seriously though, how long are these guys going to lose money for?)
Profits aren’t sexy. They don’t have a great story. They aren’t going to change the world.
What changes the world is an over confident personality who is entitled enough to not admit they really don’t know what’s going on. Sure, they are going to try their hardest, but at the end of the day they are gambling just like everyone else.
So the advice?
Stop worrying about profit. It’s the inevitable result of running a business that has customers. Sell whatever sells. Who am I to tell you what your true “product” is? If that happens to be your award winning personality, go for it.
I’ll be sitting on the corner counting my nickels while you “change the world”.