Thursday, March 29, 2007

Gyaan Session

One of the things that you learn as you move forward in any startup is financial prudence. Financial prudence does not mean cutting down on spends. It means knowing where to spend and where not.

When people bootstrap to start a company, they normally are very circumspect about any and every expense. Often they spend time ... rather waste time on debates of whether an expense is required or not.

On the other hand, people who have large amounts of capital available to them end up splurging money on items which are hardly necessary for the business.

As any team moves on, there is a certain skill that gets developed where there is much higher clarity on what is an avoidable expense and what is an investment into the business.

-Kash

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