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When I was bootstrapping my startup while working a day job, I used to wonder how to answer that question. My product was bringing in more money then the compa
by ry0ohki 12y ago
When I was bootstrapping my startup while working a day job, I used to wonder how to answer that question. My product was bringing in more money then the company's costs, so it felt "profitable", yet not enough to employ me full-time. Seems like there is a difference between that and something that is just plain unprofitable (where the burn rate will eventually cause the bank account to go to zero).
- superqd 12y agoThe software doesn't write and maintain itself. So if the revenue can't cover the expense to write/maintain the codebase (i.e., dev salaries), then the app isn't profitable because one of the major costs can't be met out of revenue at 100%.