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What’s Appropriately Frugal And Why It’s The Right Way To Financially Manage Your Company
“I’ve founded three startups, and I’ve never had one that was profitable,” Andrew said to me. You’d think he was a failure based on that statement.
Not exactly.
He sold his last company for $300M.
But my friend is part of bygone era where you didn’t have to worry about getting a company to cash flow positive. The investor money just kept flowing.
Today it’s different. No longer can you count on investors funding your next round. And you never could if you were bootstrapping. You had to count on yourself.
You have to manage your bottom line. You can’t just spend.
Andrew just founded his fourth company.
I am curious to. see what he will do because the world has changed. Will he keep spending freely or will he manage his bottom line?
If only it were that simple.
It never is.
Here’s the challenge he faces. It’s the same one you will face: How do you grow quickly, hire the best people, and manage to a tight budget all at the same time?
