I only buy yarn when I need it for a project or because it’s on sale or because shirt
This more relates to failures than it does to limiting growth, but I’ve seen it enough to add it to the I only buy yarn when I need it for a project or because it’s on sale or because shirt moreover I love this list. It is important to understand that not all money is smart money. Just because someone will give you a big chunk of money for a high valuation early on, it doesn’t mean you should take it. You should only take enough money at a valuation you can realistically justify. Why? Lets say that you have an angel investor that gets excited and wants to give you 1M for 20%. Good deal? Well it depends. You’ve just been valued at 5M and If after you’ve burnt through that 1M you cant justify a markedly higher valuation, you will either A) have a down round that will devalue your original investor and is essentially a kiss of death, or B) never be able to raise another penny and cripple your company. There is never usually a single answer on what limits a startup’s growth but more of a combination of many factors. As far as what makes huge companies huge, its a bit like hunting for a unicorn. No one can tell you where to find one, but they can tell you what they look like. Most unicorns we see have the following. Easter Island claims to be the most isolated inhabited place on earth. Flying there is surprisingly complex for pilots. There comes a point where the captain has to decide to continue, knowing that if he does he simply doesn’t have sufficient fuel to get to another airfield. Once that decision is made it’s land at Easter Island or ditch in the Ocean. The decision is complicated by the configuration of the airfield which has very restricted parking for planes so he also has to know there is somewhere for the plane to park; if the previous arrival has a technical problem and cannot take off it can mean the inbound flight has to turn around. That can’t be isolated, can it? You can take a train to with a couple of miles. Yet, when you’re there, it feel isolated. There is running water but no electricity. There was no money when it was built. Somone found the cottage, arranged with the owner to pay minimum rent in return for fixing it up. Rather than buy bunk beds they went into the surrounding woods and found tree boughs and installed them to make a wooden frame.
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