
Should Startups Focus on Profitability or Not? - joeyespo
http://www.bothsidesofthetable.com/2011/12/27/should-startups-focus-on-profitability-or-not/
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bobby_9x
One issue many founders never think of is that if you get VC and focus on
growth and not profit, you are putting yourself in a riskier position where
your shares could be worthless.

If the company ever sells, they will definitely be looking at profit when it
comes to valuation and if it's over-valued, VC gets paid out first.

I think many startup founders have it backwards: They have a good idea and
they try to shoe-horn in a business model (that sometimes works).

Instead, come up with the business model first and then come up with a great
idea around it. I've done this with my last two companies and I was profitable
from day 1.

