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A simple heuristic that will save inexperienced startup founders from several different types of mistakes: be really cheap. This will save you from hiring too many people, from renting a fancy office, and from growing by buying users instead of making great things.
If you raise from VCs, most will pressure you to spend faster. Partly because, as money people, they think money solves problems. But partly for a more sinister reason: so they can buy more of the company when you burn through this money and need to raise more.
If you're a young founder, VCs have a powerful weapon to convince you to spend faster. They can tell you it's amateurish to be cheap. That you're thinking small. Don't listen to them. Most famous founders were cheap.
It's hard to think of a YC company that was killed by being too cheap. But the number killed by spending too much seems endless.
Thank you. Needed that.
It’s called managing your pennies & cents. Any startup not doing this is doomed anyways.
Definitely something that Deliveroo did early on. It’s surprising, given how much money they raised since, but there’s been a great focus on being efficient with money which made everyone involved confident the money wars with Uber Eats is justified.
Please clarify, I've often wondered about how this is perceived... flashy car and large offices = SUCCESS
What about hiring developers to build the product? What about paying the salary that my team deserves?
Learn to program. Pay yourself in equity. Problem solved.
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