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Sam (crazy candle person) ✦
@samantha
What are the differences between scaling a small business vs. scaling a VC funded business?
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Kyle Tut
@kyletut
Growth and exit options. Since growth is covered elsewhere in this thread, I'll focus on exit. You could sell your small business for $1 million dollars to someone who values it either for the product, brand, or cash flow. That theoretical amount may or may not be worth it to you. You could simply shut it down because it's not worth it anymore. Or, you can just grind at it for decades, slowly building towards something. For Pinata, my mandate is to generate a successful return to our investors in a relatively short amount of time. To do so, high growth is necessary and if I can't achieve that it drastically scopes down my options for exit.
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Greg Robinson
@gregrob.eth
Having grown up in a small business (funeral home), then ran a music school in my 20s, and 2 VC backed companies since… the difference in how cash is treated is the main difference. In VC backed, post product market fit anyway, every month’s sales and marketing spend (X) should create greater than X amount of new revenue the following month (dR). If dR > X, growth machine is activated. Keeping the ratio above 1 while X is as big as possible is a VC industry dream scenario. Small biz, you know… cash rules everything around me. Profit or💀 Week 1 Revenue > facilities cost. Week 2 Revenue > inventory cost. Week 3 Revenue > people cost. Week 4 Revenue = Profit!
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darth grin
@grin
Actually it depends on you. You don't HAVE to give the VCs what they want, even if they fund you. You can completely ignore them and pretend you're a small biz. But then no VC will ever fund you again. just sayin
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Zach Davidson
@zd
Growth https://warpcast.com/zd/0xb18e3342
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pugson
@pugson
when you're spending somebody else's money you are more inclined to throw shit at the wall and see what happens vs trying to survive
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Ake - heyake.degen.eth
@heyake
You have 100x100 control of your SB vs you + others the VC's control your movements....
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