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- control your costs

- spread your risk (no single customer > 20% of your business)

- save for the next crisis when the money is good

- focus

- cashflow beats cash

- find your peers and establish relationships

- know your strengths, more importantly, know where you're weak

- working overtime is no substitute for bad planning

- every deal should make money

- better 10 small deals in the pocket than one huge one that you're chasing for the next 6 months

- make a cashflow projection and keep it updated for at least 6 months out

- if you have less than 6 months of running costs in your bank you're in a crisis




> - working overtime is no substitute for bad planning

I feel like I know what you mean, but this one feels off to me. I think you mean, "working overtime is no substitute for good planning." As in, working overtime is a consequence of bad planning (not always, but an indicator at least).


Exactly. It seems to bump against the warning against eating up your buffer. Whether that's physical space, time, or money. We all need some wiggle room to deal with the unexpected, don't run to the edge with everything or one small mistake will ruin everything.


Yes, you're right that was a mistake.


My sister has a saying she picked up from somewhere that runs along similar lines: Luck is a poor substitute for strategy.


Those are pretty reasonable rules for "startups" too.


Except that financed companies seeking high growth may for a while abide by "cash creates cash flow", "deals that don't make money can still make you grow", and "spend on growth fast, so you'll be bigger than the next crisis".

Extremely risky, but those seem to be the norm on companies that get huge.




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