Are you building a profitable business? I’m not asking whether or not your business is profitable now, but whether it will ever be profitable? More importantly, does future profitability enter into your current decision-making? If not, you’re doing your business and yourself a disservice.
Leave the “no profits” model to the not-for-profits — they’re much better at it.
For some reason, many startups treat profit as a 4 letter word. The common argument goes something like this: “We’re going to create something so fantastically wonderful that millions of people are going to flock to our site, and then we’re going to be fantastically successful. Just like YouTube. Or Facebook. Or Twitter”
This reminds me of one of my favorite Southpark episode about the Underpants Gnomes.Watch this clip if you haven’t seen it yet (or haven’t seen it recently).