Spending Money
I was chatting with a friend about how as your business evolves, your spending strategy has to evolve too.
Phase 1
Frequently, when you’re just starting the business, you are cash constrained. Every dollar matters. If you can do something yourself, you do. If you can save a dollar, you do. Your biggest risk is running out of money.
Phase 2
At some point, you have cash. Maybe you raised, maybe you’re profitable. But the lessons of saving every dollar are deeply engrained. Bankruptcy is still a risk, and dollars still matter, but now the biggest risk is that you won’t grow.
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I suspect it’s hard for founders to make that jump from the 1st phase to the 2nd.
The mindset in the 1st phase served them well. And it won’t serve them POORLY in the 2nd phase, but it won’t serve them well either.
It’s hard to leave a tool that worked for you.