Why you don’t want to be like tech giants like Uber, AirBnB, and Palantir
When I tell people that they don't want to be anything like Uber which has become the noun to describe the ride-sharing industry, AirBnB which has re-written the hospitality industry, or Palantir which has transformed the tech-security world, I get pretty weird looks.
Here's why I make that case:
- AirBnB was founded in 2008 and didn't turn their first profit until 2016 - blowing through hundreds of millions of dollars before then!
- Uber was founded in 2009, and still hasn't turned a profit, losing nearly $900m in the second quarter of 2018 alone.
- Palantir was founded all the way back in 2003, is a major player in data analysis for governments across the globe, and still loses money daily.
It sounds insane that a business could be that old, that established, and still losing money. We all assume that once we get our big break, we'll have it made! The cash will finally start flowing, and we'll be golden.
But that's not how it works!
One of my favorite quotes is "When you get where you're going, you'll only be more of who you already are." That means, when you have more money, it's only going to make you more of who you are today!
That means you've got to get profitable NOW. Your business is literally hinging on you finding a way to get profitable today. No more chasing after good money (savings, lines of credit, investors, credit cards) to throw it after bad.
My favorite resource (you might have heard me talk about it...) to help with this is the book Profit First by Mike Michalowicz.
Read it, learn it, love it.
It will literally save your business!
Guaranteed!
P. S. I get nothing for referring everyone I meet to read this book, other than the warm fuzzies of knowing I am helping save businesses. This book is that good!