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0 pointsdemosthanos11mo ago0 comments

> Year 0 you’re unlikely to have any profits, future years you have multiple years of R&D to offset with.

You're only unlikely to have no profits if you have no revenue. And you only get to break even 5 years in, which most startups will never reach.

In practice what is likely going to happen is that we'll see more and more startups deliberately avoid revenue in the early days. More and more free tiers followed by rug pulls when revenue actually becomes an asset rather than a liability.

There is no unplanned economy, only different outcomes from better or worse plans. And I'm having a hard time imagining a worse plan than one that intentionally disincentivizes businesses from adopting a sustainable business model early in their lifetime.

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Retric11mo ago

> unlikely to have no profits if you have no revenue.

It’s much easier to have revenue than profits, set the price lower and suddenly zero profit. Some company avoiding profits because of the 21% tax on profit like that would be mathematically dumb.

> There is no unplanned economy, only different outcomes from better or worse plans. And I'm having a hard time imagining a worse plan than one that intentionally disincentivizes businesses from adopting a sustainable business model early in their lifetime.

There’s zero advantage to avoiding revenue or profit here. You’re tilting at windmills.

You simply need less investor money for R&D when other parts of the company are profitable. As to central panning, the mistake you just made is mitigated when many people are all independently making plans. Governments always need to get it right, the market is fine if some people get it right and therefore can reinvest in their success.