[HN Gopher] The profitable startup
       ___________________________________________________________________
        
       The profitable startup
        
       Author : doppp
       Score  : 224 points
       Date   : 2025-11-01 03:18 UTC (19 hours ago)
        
 (HTM) web link (linear.app)
 (TXT) w3m dump (linear.app)
        
       | timenotwasted wrote:
       | It's really great to see the shift that has been taking place
       | away from unicorns, growth for the sake of growth, and all the
       | chaos that drove throughout. Maybe it's my own personal bias but
       | I feel that these stories of low, slow growth; small teams, small
       | wins but consistency are becoming more norm. While I realize
       | there is still plenty of froth, it's inspiring and makes me
       | hopeful for an industry shift in that direction.
       | 
       | "And when we launched after a year in private beta, almost all of
       | our 100 beta users converted to paid customers." -- That's a neat
       | stat and one I'd be extremely proud of.
        
         | BobbyJo wrote:
         | I could swear I read this exact same comment back in 2016.
        
         | nine_k wrote:
         | I'm used to thinking that a "startup" implies a small company
         | with hockey-stick growth and eventual market domination,
         | usually deploying large amounts of capital to fuel the growth.
         | Otherwise it's just a sparking small business: a pizzeria is
         | not a startup.
         | 
         | It seems that the internet allows for a third option: a small
         | company that grows slowly and organically which eventually
         | captures a significant market segment, still staying small.
         | GitHub was like that for many years since founding. Linear
         | apparently is another example.
        
           | 8n4vidtmkvmk wrote:
           | Is there a better word for these grow slow companies?
        
             | all2 wrote:
             | "Normal growth"?
        
             | rebuilder wrote:
             | Small business?
        
             | eviluncle wrote:
             | "hypeless growth"
        
             | kchoudhu wrote:
             | Businesses
        
             | jacquesm wrote:
             | Solid? Right up to the point some funded start-up starts
             | giving away the same thing in the hope that they can fake
             | it until they make it and take everybody else in the same
             | space down with them.
        
               | disgruntledphd2 wrote:
               | Linear is a really, really good product though, so it is
               | worth paying for.
        
             | layer8 wrote:
             | SME, bootstrapped business.
        
           | palata wrote:
           | I consider that it is a startup when it hasn't found a
           | product-market fit, i.e. it is not profitable.
           | 
           | As soon as it is profitable, it is a normal company. Small or
           | big.
           | 
           | An established company has established products and keep
           | building/improving them. A startup does not have that: they
           | just have ideas and try them until one works, or they run out
           | of money. VCs consider it's worth fueling that "trial-and-
           | error" with investments because they believe it is a
           | competent team in a promising field. Nothing more, nothing
           | less, it's just a lottery after that point. Just one where
           | VCs and founders like to believe they are enlightened.
           | 
           | Because the first idea you try is successful does not mean
           | you know more than the (numerous) others, but rather that you
           | were lucky at the first try.
        
         | ido wrote:
         | Maybe it's my own personal bias but I feel that these stories
         | of low,          slow growth; small teams, small wins but
         | consistency are becoming          more norm. While I realize
         | there is still plenty of froth, it's          inspiring and
         | makes me hopeful for an industry shift in that direction.
         | 
         | I prefer small teams myself too, but do keep in mind "an
         | industry shift in that direction" would also mean far less
         | demand for developers...
        
         | whiplash451 wrote:
         | Note that Stripe had followed that path already.
         | 
         | They had 50 users after two years.
        
           | rsanek wrote:
           | Though, conversely, Stripe was money-losing for the first 15
           | years of its existence.
        
       | alberth wrote:
       | 48 Comments | 8-months ago
       | 
       | https://news.ycombinator.com/item?id=43130480
        
       | contrarian1234 wrote:
       | This is just called a small business...
       | 
       | The whole point of startups is that you take on massive
       | investment to scale extremely quickly and outrun all potential
       | imitators. It's not the only viable growth model, but that's the
       | whole conceit of startups and what differentiates them for small
       | businesses
       | 
       | It's a bit silly to try to redefine the term b/c you want to self
       | identify as a startup. Just come to terms with that fact you're
       | running a small business
        
         | azundo wrote:
         | I think the point is there are many "startups" with similar
         | revenue and growth to Linear that never become profitable. I
         | don't think Linear qualifies as a small business and I don't
         | think they're scaling less quickly than someone in same market
         | with more funding and less profit.
        
           | palata wrote:
           | To me a startup hasn't found a product-market fit yet. That's
           | the whole point, they're trying to find a way to get
           | profitable. As soon as you are profitable, then you are a
           | normal company.
        
         | rubenvanwyk wrote:
         | Being "startup" just means you're a business building something
         | new or novel, it doesn't mean you automatically have to follow
         | the VC-model for startups.
        
           | contrarian1234 wrote:
           | if you start a bakery selling kimchi bagels, its not a
           | startup
        
             | Fomite wrote:
             | They're disrupting the bagel market, leveraging their
             | unique vision. Think of them as a DoorDash for people who
             | want to come into their bakery.
        
         | mitthrowaway2 wrote:
         | Wouldn't the key difference be the growth trajectory? I see a
         | startup as a small business that aims to become a big one. Most
         | small businesses are comfortable at their size, but a startup
         | is not. It could achieve that growth by taking on lots of
         | investment, but that's not the only way.
        
         | aguacaterojo wrote:
         | "Linear raises $82M in series C funding at $1.25B valuation to
         | challenge Atlassian"
        
           | contrarian1234 wrote:
           | interesting.. one wonders then why they raised funding if
           | their income is covering all their expenses
           | 
           | unless they have some creative definition of profitable
        
             | _puk wrote:
             | Speed of growth.
             | 
             | Being profitable is one of the best times to raise. You
             | don't need the money, but it'll accelerate the next phase
             | of growth.
             | 
             | Retaining profitability after raising is probably harder as
             | you're expected to spend that money to grow.
             | 
             | I'm sure it can be done if you've raised with the right
             | people and you keep focus on ARR per FTE.
        
               | darkwater wrote:
               | > Speed of growth
               | 
               | But the post we are discussing is literally about hiring
               | slowly and only if really needed and only hiring the
               | "next great engineer".
               | 
               | I understand that the post words are written deliberately
               | in a way open to more interpretations, and the "only if
               | needed" can apply to "we need to take on more Atlassian
               | customers so we need this and that".
        
               | Esophagus4 wrote:
               | And if you raise after you're already profitable, you
               | have a lot more control / leverage over the terms and who
               | is involved.
        
       | masterzachary wrote:
       | The boot strapped startups I've seen that have had this holier
       | than thou attitude that they are somehow selecting the best
       | engineers by only having a tiny team have always had the absolute
       | worst tech, the worst engineering, the worst leadership and
       | usually also the worst processes that I've ever encountered.
        
         | comradesmith wrote:
         | Yeah, but they know how to make money
        
         | jmtulloss wrote:
         | Linear is a venture funded company
        
       | cmatza wrote:
       | I'm a little suspicious of this because every startup says that
       | they don't hire the next engineer, they hire the next great
       | engineer.
       | 
       | I think a lot of the value is taking the ordinary engineers (by
       | hacker news) and letting them actually do something. Staying
       | small helps this, because you are not thinking of the business
       | ops burden of not building microservices. You're building your
       | single dockerized app.
        
         | selcuka wrote:
         | Also only hiring great engineers is an existential risk. Every
         | time someone leaves, you lose a part of the business that is
         | hard to replace.
         | 
         | It sounds counter-intuitive, but mediocracy usually works
         | better in the long run.
        
           | Esophagus4 wrote:
           | You need a mix - a team of only stars will fail, and a team
           | of only mediocre members will fail.
           | 
           | You want one or two stars, chemistry among the whole team,
           | and good fundamentals.
           | 
           | Good sports examples: the LA Dodgers, 90s Chicago Bulls (a
           | few stars, a few normal players, good fundamentals, and great
           | chemistry)
           | 
           | Bad sports examples: the 2023 Mets with Verlander and
           | Scherzer (both overpaid divas with bad attitudes that hated
           | each other), the current Yankees (a few stars, no
           | fundamentals or discipline)
        
             | rkomorn wrote:
             | I'm a Dodgers fan and I'm kinda confused by your take that
             | the Dodgers roster is different from the 2023 Mets or
             | current Yankees.
             | 
             | If anything, the Blue Jays are the example, not the
             | Dodgers.
        
               | Esophagus4 wrote:
               | Sorry, I was talking about the previous iteration of the
               | Dodgers that beat the Yankees. I haven't been watching
               | this year, other than Ohtani doing Ohtani stuff.
               | 
               | The previous Dodgers were stacked, but I meant that they
               | had good chemistry and fundamentals. They beat the
               | Yankees because the Yankees just made too many mistakes.
               | 
               | The Mets hired highly paid stars but couldn't find
               | chemistry, as nobody could get along. They did have some
               | good eras with DeGrom, Syndegaard, etc, but if I
               | remember, many of those stars started out small and grew
               | into their stardom with the team.
        
             | selcuka wrote:
             | Exactly, that's why I said " _only_ hiring great engineers
             | ".
             | 
             | For startups it's best to start with at least one or two
             | good technical co-founders, as the risk of losing them is
             | lower when compared to an employee.
        
         | move-on-by wrote:
         | Hiring great engineers is only part of the problem. Management
         | and product needs enough vision and foresight to allow the
         | great engineers to execute. It's doesn't matter how great your
         | engineering team is if you keep redirecting them like a deaf
         | stubborn dementia patient.
        
           | agrippanux wrote:
           | Management and product needing vision and foresight is an
           | excellent call out. I can't help but think a lot of these
           | self-proclaimed 9-9-6 startups are in reality 11-3-6 startups
           | with a bunch of wasted time padding to 9-9-6.
        
         | Esophagus4 wrote:
         | Keep in mind "great engineer" will be a subjective term that
         | means different things to everyone.
         | 
         | To Meta, it might mean cream of the crop, $1m+ engineer. To
         | early Google, it might mean Stanford grad with deep CS
         | knowledge. To a no-name startup, it might mean someone who
         | accepts the job who takes initiative and knows how to crank out
         | ugly code quickly on AWS and makes good prioritization
         | decisions.
        
       | kylegalbraith wrote:
       | This idea makes the rounds on HN quarterly. I think folks reading
       | this need to check their business model. Every company is
       | slightly different and unique to how they are solving a
       | particular problem.
       | 
       | That said, knowing how you get to profitability or what you need
       | to change in your model to get to it are fundamental things to
       | know. But just because Linear did it the way they've outlined
       | here, doesn't mean that is what will work for your model.
        
       | physicsguy wrote:
       | The reason everyone did it was: interest rates.
       | 
       | When interest rates are low the cost of borrowing is low. Now
       | investors can get returns by parking their money so the value
       | proposition has to be stronger for them to invest in the first
       | place, hence companies are now needing to show profitability
       | earlier.
        
         | yes_man wrote:
         | This, and another angle is that whatever market you are in, it
         | is harder to run profitable margins if your competitors can eat
         | the market while sustaining losses. And there was a lot of
         | money around to sustain those losses.
         | 
         | Not to say it wasn't possible to be profitable during zero
         | interest rates, Linear being an example, but the competitive
         | landscape is certainly healthier today for companies trying to
         | be profitable.
        
         | senko wrote:
         | For every complex problem, there is an answer that is clear,
         | simple, and wrong.
         | 
         | There are a number of other reasons that (might have)
         | contributed to greater or lesser extent:
         | 
         | * rush to capture users and get acquired (the buyer can worry
         | about profitability)
         | 
         | * race to the bottom by multiple competitors (you might want to
         | be profitable but can't command a high price because others'
         | are artificially low)
         | 
         | * ignoring costs that were rising faster than anticipated
         | (wages, cloud costs, etc)
         | 
         | ... and probably many more.
         | 
         | Not saying you're completely wrong, but ZIRP is just part of
         | the picture.
        
           | antonymoose wrote:
           | I would argue that everything you've listed are just
           | downstream of ZIRP.
        
             | senko wrote:
             | I would not agree, as these sorts of things were frequent
             | before the latest round of ZIRPs:
             | 
             | * Uber IPOed in 2019, had a loss of $8.5b that year;
             | interest rates were around 2%
             | 
             | * YouTube was acquired by Google for $1.65B in 2006, it
             | lost ~$350m in the year before and the entire music
             | industry was suing it; interest rates were around 4%
             | 
             | * Facebook bought Instagram for $1b in 2012, which at that
             | point had no revenue and no plan how to achieve it; this
             | was smack in the middle of the previous ZIRP cycle, however
             | I don't think anyone would say that Instagram wasn't a huge
             | success either for the founders or for Facebook
             | 
             | I would agree ZIRP fuels those things (to unhealthy
             | levels), but not that it's always the root cause.
        
               | darkwater wrote:
               | > I would agree ZIRP fuels those things (to unhealthy
               | levels), but not that it's always the root cause.
               | 
               | It you were to set a house on fire with just a lighter in
               | your hands, you would not succeed. If you have a lighter
               | and a tank of gasoline, you might probably succeed. ZIRP
               | was the fuel, the lightener and your will are the "root
               | causes". But with no fuel, no fire.
        
               | senko wrote:
               | In the interest of clearly communicating:
               | 
               | I used "fuel" in the meaning "to make people's ideas or
               | feelings stronger, or to make a situation worse", not "a
               | substance that is burned to provide heat or power", see
               | https://dictionary.cambridge.org/dictionary/learner-
               | english/...
               | 
               | I did provide two quick examples of these effects
               | happening in the absence of ZIRP, so it is clearly _not_
               | always required.
               | 
               | As, sadly, is not a tank of gasoline or ill intent to set
               | a house on fire - these things can happen by accident,
               | often a single spark is enough.
               | 
               | There's plenty of literal fuel beside gasoline, and
               | there's plenty of "startup growth at all costs" fuel
               | beside ZIRP.
        
               | jasode wrote:
               | _> ZIRP was the fuel, the lightener and your will are the
               | "root causes". But with no fuel, no fire._
               | 
               | But the "Z" in "ZIRP" is literally _zero% interest_ so
               | your reply doesn 't seem to address the gp's counter-
               | examples of >0%. Other examples of non-zero% interest
               | rate time periods include 1990s high-interest rates of
               | +5% with Amazon in 1994 losing money for 7 years, PayPal
               | 1998 losing money for 3+ years, Google 1998 losing money
               | for 3+ years.
               | 
               | Those counter-examples means the simplistic narrative of
               | _" ZIRP is The Reason"_ does not explain everything.
               | Those non-profitable companies were immediately scaling
               | out to win the market and didn't wait for year 2008 ZIRP
               | to do it.
               | 
               | Today, OpenAI (and other AI startups) are losing billions
               | and _expect_ to lose more billions in the upcoming years
               | even though the current interest rate is ~4%.
        
               | stackskipton wrote:
               | >Today, OpenAI (and other AI startups) are losing
               | billions and expect to lose more billions in the upcoming
               | years even though the current interest rate is ~4%.
               | 
               | AI stuff is little different. If OpenAI and others hit
               | AGI or anything remotely near it, the money is in theory
               | massively endless. So investing when you could get 4% in
               | a company that would return 10000% makes sense.
               | 
               | However, 4% in a company growing 15% in their field with
               | profit margin of 10% means if only 1 in 5 survive, you
               | have lost money so investors pull back.
        
               | antonymoose wrote:
               | I would consider the few unicorn examples provided to be
               | outliers.
               | 
               | For most of the 2010's ZIRP created a startup gold rush
               | with everyone trying to leverage the same "burn money,
               | get users" strategy you've outlined.
               | 
               | Excepting the current AI bubble, you cannot play that
               | strategy today. Investors started demanding real results
               | in the post COVID inflation years and continue to do so
               | today, or else don't invest at all in high-risk ventures
               | with no tangible results.
        
       | jillesvangurp wrote:
       | I'm in my third startup. My first one (founded 2013) was acquired
       | by the second one after a year. That one failed around 2018. The
       | first one was a small technology company where my co-founder and
       | I (both techies) made the classical "build it and they'll come"
       | mistake. They didn't come and just as we were running low on
       | savings, we met the CEO of startup #2 who was a classical
       | business founder and had already secured a huge seed round (~3M
       | euro). He had the ideas and the money, we had the tech. So we
       | joined forces. The next few years we tried lots of things and
       | pivoted a few times. But in the end product market fit remained
       | elusive and the 3M was gone.
       | 
       | I went off and did a bit of consulting, freelancing, etc. And
       | five years ago, I helped out a friend who was working on a
       | bootstrapped company that I liked. And we kind of had
       | complementary skills (not repeating my first mistake). It was the
       | beginning of the lockdowns. I had nothing better to do having
       | just come out of a lucrative project that got cancelled because
       | of the lockdowns (and probably because it was doomed anyway). I
       | had built up a bit of reserves over the past two years. My friend
       | had just come out of an intense year of juggling projects for a
       | big consultancy firm. And he had his own startup past. In short,
       | we hit the sweet spot of being old, wise, and experienced enough
       | to maybe pull this off and we weren't looking for pizza money.
       | 
       | An important lesson I learned in my pre-startup corporate career
       | is that making teams smaller makes them go faster. I once had a
       | gridlocked team that wasn't getting anything done. We split the
       | team and immediately things moved faster. Less meetings and
       | debating. And infighting. And stress. More coding. I applied that
       | in startup #2 and while we ultimately failed, I re-affirmed that
       | losing team members can actually accelerate development. The team
       | was down to just 2 people (me and the CEO) by the time we had to
       | pull the plug. But not for a lack of trying. We were crazily
       | productive. We both did the work of 2-3 people and stepped way
       | out of our comfort zones for the last two years of the company.
       | 
       | The lesson I took from the second startup is that investor money
       | makes you lazy and that you don't need it if you can step up and
       | do stuff yourself instead of being lazy and hiring too many
       | people. Money removes urgency and tricks you into not focusing
       | and postponing key work that needs doing, over-staffing, and
       | losing focus. Having stared at having to abandon my third startup
       | because we have been running on fumes continuously for the last
       | five years has kept us laser focused on fixing our huge looming
       | financial problem. For us that meant confronting the elephant in
       | the room: getting customers to understand what it is we are
       | selling. This took us years.
       | 
       | The tech didn't change much (though it got better of course). It
       | flipped around a year ago after lots of failed experiments with
       | getting others to sell our tech. Founder sales is the way to go.
       | It requires founders that can build and that can sell. You need
       | both skills in the team and preferably in all founders.
       | 
       | We've flirted with investors of course. But for about two years
       | they struggled to understand what we are trying to do and in the
       | last few years we proved that we were onto something by
       | generating revenue without them. In an alternate universe we
       | might have gotten invested in but at this point we don't need
       | them and they don't want us for that reason.
       | 
       | Things are genuinely looking like we might hit the hockey stick
       | curve soonish now. We have some very serious leads for multi-
       | million euro deals. We're completely bootstrapped. We did
       | everything with a small and lean team. We're down to three people
       | and it's great. We might start expanding soon. But we're going to
       | be super picky about who gets to join next. We don't want to
       | derail our company with the wrong hire.
       | 
       | It could all still fail. That's the nature of any startup. But
       | we've vastly improved our odds through hard work. I'm more
       | confident than ever it will work out. And yet the reality remains
       | that many startups don't make it. What can I say; I'm an
       | optimist. Pessimists don't build successful companies.
        
         | portaouflop wrote:
         | I hope you succeed. But I think it's all down to luck; of
         | course some work is required but I don't think that hard work
         | necessarily matters. Or any of the stuff you mentioned. In my
         | experience you can do all the "mistakes" you mentioned and
         | still come out on top. And not to piss in your cereal but
         | having leads for $bigcorp means nothing until a deal is inked.
         | 
         | Ps: and I'm very pessimistic; the scary thing is it's all
         | random as shit
        
           | jillesvangurp wrote:
           | You create your own luck. There's a difference between
           | fatalism and pessimism. A pessimist might still choose to act
           | despite expecting failure. A fatalist just gives up.
           | 
           | You create options for success through hard work. You need
           | luck and inspiration to stumble upon the right options, and
           | you need experience and wisdom to recognize it when you do.
           | And you can do everything right and never get there. But
           | without putting in the hours you likely don't create the
           | options nor gain the wisdom to judge them correctly when you
           | do. Don Reinertsen coined a notion of option value in his
           | books and presentations on Lean 2.0. It's something that
           | resonates with me. Lots of startups practice Lean 1.0 which
           | is more like throwing out the baby with the bathwater.
           | 
           | > And not to piss in your cereal but having leads for
           | $bigcorp means nothing until a deal is inked.
           | 
           | Very aware of that, obviously.
        
         | cantor_S_drug wrote:
         | > The lesson I took from the second startup is that investor
         | money makes you lazy
         | 
         | Marc Andreessen has made statements that align with the idea
         | that abundant capital can lead to poor decision-making or a
         | lack of discipline among founders. The core of his perspective
         | emphasizes the importance of resourcefulness, persistence, and
         | an intense focus on building the business over optimizing for
         | fundraising.
         | 
         | "Too much capital breeds sloppy execution": While this specific
         | quote might be from another source, it reflects a sentiment
         | consistent with Andreessen's philosophy, which values the
         | discipline forced by resource constraints (bootstrapping) in
         | the early stages of a startup.
         | 
         | Wasn't there a whole movement of Lean startups? What happened
         | to that?
        
       | madaxe_again wrote:
       | Being profitable is no bad thing - but you can be _too_
       | profitable, too.
       | 
       | My startup, my cofounder was obsessed with profitability - I was
       | far more focussed on growth. In theory, not a bad balance - but
       | in practice, his drive towards profitability meant that we ended
       | up underinvesting in the business - millions of pounds sat in our
       | coffers that could have gone to hiring, could have gone to
       | maintaining and building upon our core mission rather than
       | focussing on a profitable sideshow - and in the end, while the
       | business still exists, it is now Just Another Agency, rather than
       | the tech startup it once was.
       | 
       | Anyway. These days I run my own affairs, and place emphasis on
       | long term growth and keep short term profits to the absolute
       | minimum needed to live well enough.
       | 
       | It's good to make a profit - but business should be viewed as any
       | investment should be - let it compound.
        
         | willsmith72 wrote:
         | totally agree with this, operating cash flow positive +
         | internal reinvestment seems like the best mix for an early
         | software company
        
         | joeiq wrote:
         | Very good point. Some profitability while maintaining alignment
         | with core principles is an excellent outcome too.
        
       | joduplessis wrote:
       | Not to denigrate the content of the article or Linear - because
       | it's a fantastic tool - but easy talking about profitability when
       | you're able to spend a year in private beta, focusing on product.
       | This is like talking about creating your own wealth, but not
       | mentioning you have a trust fund.
        
         | kijin wrote:
         | You don't need a trust fund to keep a small team eating ramen
         | for a year. Lots of people start businesses with just their
         | savings and maybe a small loan.
         | 
         | Maybe that's not the kind of company you'd like to build, but
         | if it's the only option given your financial circumstances,
         | ramen it will be.
        
           | an0malous wrote:
           | Is that what Linear did?
        
             | kijin wrote:
             | Linear founders had "savings" from previous exits. Some of
             | the early ones really were ramen-scale from what I can
             | tell.
             | 
             | So that's one way to come up with the capital you need.
             | Start something, grow it, sell it for $$, and invest that
             | $$ in a new company that you hope will be worth $$$$. Rinse
             | and repeat. You don't have to make it big on your first
             | try!
        
               | plumthreads wrote:
               | A $4.2 million seed round from Sequoia also didn't hurt.
               | Maybe they were able to eat pizza instead of ramen
               | because of that.
        
       | sergioisidoro wrote:
       | > investors are quite interested in profitable companies that
       | also grow fast.
       | 
       | I'm gonna dispute this. We're currently profitable, and to do so
       | our growth is just "good" (80-100% yoy). We're also raising a
       | smaller amount because we want to return to profitable as soon as
       | possible, and repeat the cycle. Being profitable hasn't been a
       | big selling point in our discussions.
       | 
       | Either our growth is not high enough, or our round is not big
       | enough, as they are so used to seeing ridiculously inflated
       | projections from the last decade.
       | 
       | Furthermore being profitable also removes a lot of leverage from
       | investors. That might make them shy away from a discussion
       | because they know they can't twist out arm as easily.
       | 
       | I agree tho, I wouldn't want to build our company any other way
       | than being profitable. Just saying that being profitable is not
       | something investors seem to like as much as we thought.
        
       | bingemaker wrote:
       | Having lots of money to throw at moonshot problems is always
       | important. The current breakthrough of the 2020s is LLMs. I
       | wonder if such breakthroughs can be achieved with this kind of
       | approach.
        
       | noodlesUK wrote:
       | I think it's an important thing to remind yourself of sometimes
       | that there's a pretty significant difference between a startup
       | and a small business. In spaces outside HN, small businesses are
       | the default form of business, and there's plenty of merit to
       | running one even in tech - not everything is scaleable, nor does
       | it need to be. If you can identify a niche, generate profits, and
       | provide business value and support the livelihood of your
       | workers, that can be enough. Startups can be very impactful, and
       | the tech sector has thrived as a result of the model, but the
       | growth obsession and leverage is not mandatory.
        
       | palata wrote:
       | Sounds like there is a lot of survivorship bias to me. "We were
       | profitable because we _did it right_ , and we don't understand
       | why one would decide not to be profitable".
       | 
       | I think it's important to note that if you're building your
       | business and you are profitable, then you're lucky: you're doing
       | something that _you_ find cool, and it 's bringing money.
       | 
       | > What holds you back is rarely team size - it's the clarity of
       | your focus, skill and ability to execute.
       | 
       | This, to me, confirms what I said: nowhere they mention anything
       | like "luck". "Being in the right place at the right time", etc.
       | 
       | The reason startups grow without being profitable is because they
       | "fake it until they make it". They pretend that it's all normal
       | and it will work in order to convince VCs who have no way to know
       | if it's true or not, and don't care (it's just another bet).
       | 
       | Of course a founder won't say "we're not profitable because our
       | company is failing". They will _truly believe_ that they 're not
       | profitable because they are _on the way_ to get profitable,
       | through growth. But the numbers are here: most startups fail.
       | 
       | It's always tempting to believe that you succeeded because you
       | are strictly better than the others. And that's the whole point
       | of founding a startup: if it succeeds, the founders want to be
       | rich. The first employees will be "compensated" for their lower
       | salary and extra hours, they won't get rich. The founders _have
       | to_ believe that it 's all their doing and that they deserve to
       | get rich and not the other employees, that's an obvious cognitive
       | bias. Otherwise how would they feel about themselves? I don't
       | think it could work.
        
         | brazukadev wrote:
         | If all comes to luck, we can safely remove it from the equation
         | when talking about success.
        
           | palata wrote:
           | That's complete nonsense. Do you safely remove luck from the
           | equation when talking about the lottery?
        
             | brazukadev wrote:
             | Of course. There are many ways to increase the odds to win
             | the lottery, bets, games.
             | 
             | You can't discuss luck but you can discuss everything else,
             | like frequency. More attempts, more opportunities to get
             | lucky. This is kinda obvious, no?
        
               | palata wrote:
               | Sure, you can discuss everything you want. Magic
               | incantations and religion, too.
        
             | jonah wrote:
             | Sure, the chance of winning scales linearly with how often
             | you play.
        
               | palata wrote:
               | But if you play 10x more than me at the lottery and win,
               | it will still mostly be luck.
        
       | arthurofbabylon wrote:
       | > Profitability isn't unambitious; it's controlling your own
       | destiny.
       | 
       | Even better, profitability is all about a harmonious developer-
       | customer relationship. This was alluded to later in the essay,
       | but I believe it is worth emphasizing. The entire point of
       | business is to serve customers. That relationship is everything,
       | and profitability indicates the presence of net-positive impact.
        
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