Mark Suster discusses how startups might want to think about managing to profitability versus growth. In this post, Mark correctly states that the vast majority of companies should strive to be profitable. Business 101. Profitability gives the entrepreneur much more freedom, flexibility and protection against downturns.
Often entrepreneurs, many of them watching a few high profile, TechCrunch-buzz-driven companies, can get caught up in the “scale quickly and massively model”. But, only a handful of companies have access to the idea, capital and investors needed to build an Internet scale business. In my experience, startups should first and foremost focus on the basics of building a sustainable business - make an awesome product, engage lots of users and customers and strive to make them extremely happy.
