Comments on: Why Start Over? http://www.donloper.com/starting-over/start.html Sat, 13 Mar 2010 17:43:51 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Joshua Steimle http://www.donloper.com/starting-over/start.html/comment-page-1/#comment-2437 Joshua Steimle Tue, 10 Nov 2009 15:07:27 +0000 http://www.donloper.com/?p=1383#comment-2437 I think you're probably right and that would be a healthier way to look at things. To restate, what I really want is a company that generates yearly revenues of around $20M with a 25-35% profit margin, and which employs the minimum number of employees it takes to run the business well (which would probably be around 50 based on my business model). Even if I <em>do</em> want to run a business with 50 employees, if I set that as my primary objective then I'm focusing on the wrong thing. I already know from experience that it's better to have 1 employee and be profitable than 10 employees and be going into debt every month. I think you’re probably right and that would be a healthier way to look at things. To restate, what I really want is a company that generates yearly revenues of around $20M with a 25-35% profit margin, and which employs the minimum number of employees it takes to run the business well (which would probably be around 50 based on my business model).

Even if I do want to run a business with 50 employees, if I set that as my primary objective then I’m focusing on the wrong thing. I already know from experience that it’s better to have 1 employee and be profitable than 10 employees and be going into debt every month.

]]> By: Jeremy Hanks http://www.donloper.com/starting-over/start.html/comment-page-1/#comment-2435 Jeremy Hanks Tue, 10 Nov 2009 13:48:18 +0000 http://www.donloper.com/?p=1383#comment-2435 Commenting like crazy today... ;) I'd focus on revenue and profits rather than employees. I'd frame it as, "I'd like to operate a business with $XM in revenue rather than with 20,30,40,50 employees. I think it's a common misdirection of aspiration to have a certain # of people working for us as entrepreneurs when really, if we could run such a company with that level of sales/profits, we should gladly do it with fewest people as possible. Now granted, there is a correlation between employees/revenue, but I like to think about keeping that ratio as lean as possible. I've been telling people lately that if I could get rid of 75% of our employees and keep the same financial dynamics, I'd do that in a second with a smile on my face. I'd be a bit sad too. Great plan to not use debt/funding too! Commenting like crazy today… ;)

I’d focus on revenue and profits rather than employees. I’d frame it as, “I’d like to operate a business with $XM in revenue rather than with 20,30,40,50 employees.

I think it’s a common misdirection of aspiration to have a certain # of people working for us as entrepreneurs when really, if we could run such a company with that level of sales/profits, we should gladly do it with fewest people as possible.

Now granted, there is a correlation between employees/revenue, but I like to think about keeping that ratio as lean as possible. I’ve been telling people lately that if I could get rid of 75% of our employees and keep the same financial dynamics, I’d do that in a second with a smile on my face. I’d be a bit sad too.

Great plan to not use debt/funding too!

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