What Happens When Your Startup Breaks Even?

Where we are?

Where are we going from here?

Scenario 1: Safe “Marathon”

  • No more money needed! When a business is operationally profitable it tends to generate extra cash while it grows.
  • The business won’t earn millions (well, maybe just one, after about 10–15 years if you are lucky and keep working hard).

Scenario 2: Risky “Sprint”

  • Your current business model is not a final destination. If something works small, it does not work at a scale exactly the same way, and vice versa. It means that you will need to change your business model and scrap a lot of work you’ve done — maybe not just once.
  • You need more money! To generate value quickly you need to innovate quickly, which means you need to experiment, and that means current cash flow won’t be enough…

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http://davidavs.com | David is a software developer and tech entrepreneur, working for startups since 2010. Member of @ToptalLLC. EMBA from @HultLondon.

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David Avs

David Avs

http://davidavs.com | David is a software developer and tech entrepreneur, working for startups since 2010. Member of @ToptalLLC. EMBA from @HultLondon.

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