This week I rediscovered this gem from 37signals (the parent company of Basecamp and Hey).
It is a treatise on optimizing for profit in business, which I've been doing myself for years.
So, why choose profit?
Essentially, profit buys you time, flexibility, and freedom.
When you're profitable, you answer to no one. You don't need investor approval. You don't chase fake metrics.
37signals takes money out of the business every year. They reduce risk as they go. Other companies keep reinvesting, adding more risk each year.
They don't care about valuations. They spend zero hours on fundraising. No pitch decks. No term sheets. No cap tables.
Profit is the ultimate shield against bullshit. It protects you from your ego. It creates reasonable boundaries for your business.
Profit focuses the mind. It forces good (profitable) decisions. It creates stability for customers.
This approach isn't trendy. But it works. Year after year after year.
βDo yourself a favor and read the full article here (it's short).β
β