One thing most people don’t realize about starting a small business, particularly in the context of something with low overhead and low fixed costs, like software or media: not-enough revenue is still money!
Say you have $16k and need $2k/mo to live on. That’s 8 months of runway.
Say that after 3 months, your business makes $1k/mo. Not sustainable yet, but now you have 10 months runway! ((16-2*3)/(2-1)=10)
Not-enough revenue is still real money! 🤑
Huh. “runway” is actually backwards metaphor for this thing, at least in a personal context (may be different with “moon or bust” startups, that aren’t making any money while burning up runway).
Real runway is fixed distance, & certain speed needed for takeoff, but faster you go the sooner you run out of runway! 🛫 All-or-nothing. It’s dangerous to be going very fast but not fast enough, because it means that
By contrast, as you get momentum going with a personal business, that actually buys you more time.» read the rest of this entry »