Tan: Delaware C Corps Require Relentless Pursuit of Profit
“Basically, you know, if you're a Delaware C Corp, you have to relentlessly pursue profit. Otherwise there's grounds to remove you.”
Salguero: Profit marks the premium customers are willing to pay
“Our profit is basically a mark of the premium that our customers are willing to pay, you know, for the product and service that we provide.”
SaaS multiples still value growth at three times more than profit
“In today's environment, the actual multiple is five to six times, and that's provided that you have growth. So even though we're moving away from a growth at any cost world to a world where efficiency is prized, the reality is that growth is still worth three …”
Lessin: Technology Has No Value, Only Customers and Profits Do
“If you think about what companies are valuable, the technology is not valuable. The customers are valuable. The revenue, the profit is valuable.”
Lerner: Revenue is the wrong North Star metric for early-stage startups
“The biggest mistake with North Star, and it's a very reasonable one, is they choose their North Star as revenue, or profits.”
Siu: Earning $5M to $20M in agency profit equals an annual exit
“If your agency's doing, you know, five, 10, twenty million dollars in profit a year, that's an exit for you every single year.”
Simultaneously pursuing high growth and higher profit margins is inherently contradictory
“Growth and profit are, they battle each other. Let's say we define profit as return on equity. Well, if you're going to increase growth and increase return on equity, how do you do that? Because you're basically going to invest less to get your return on equit…”
Thiel: Competitive markets destroy profits by creating undifferentiated commodity businesses
“Competitive markets destroy profits. Main theme of the book, Do not build an undifferentiated commodity business.”
Parr: Accounting profit is a hypothesis, but cash is a fact
“A lot of times people focus on profit, but profit is a hypothesis. Cash is a fact.”
Smale: Small businesses sell on profit multiples, not revenue
“For most small businesses, so probably everyone listening, you generally don't get a revenue multiple. There's a lot of misinformation out there around valuations, but revenue multiples are uncommon. You generally get a multiple of profit.”
TimeControl generated roughly $700,000 in profit in 2021
“Last year there was about 700 K in profits.”
Sanchez: Austin hair salons can be acquired for $80k at 1x profit
“You buy a salon for like 80 K here in Austin that does more than 80 K in profit.”
Gazdecki: $1 in profit beats $100M in seed funding
“One dollar profit is better than a hundred million in seed funding in my opinion.”
Barrett: Profit is essential for startups to achieve scale and sustainability
“And I think the only way to achieve a broad scale and a long-term sustainability is profit.”