One thing most ppl don't realize about starting a small biz: Say you have $16k and need $2k/mo to live on. That's 8mo runway. Say that after 3mo, biz makes $1k/mo. Not sustainable yet, but now you have 10mo runway! ((16-2*3)/(2-1)=10) Not-enough revenue is still real money 🤑
Why "runway" is the wrong metaphor for bootstrapping a business
8 tweets · June 2020 · 146 likes · 2 retweets · read on Twitter
Huh. "runway" is actually backwards metaphor for this thing, at least in a personal context (may be diff with "moon or bust" startups) Real runway is fixed distance, & certain speed needed for takeoff, but faster you go the SOONER you run out of runway! 🛫 All-or-nothing.
By contrast, as you get momentum going with a personal business, that actually buys you *more* time. I supplemented myself with a couple of 1-on-1 coaching clients during the early phase when @CompliceGoals was only making me ~$300/mo. But that $300/mo was still vital!
I'm now trying to design a better metaphor than "runway". "bootstrapping" gets part of it tho is also weird since literally pulling yourself up by your own bootstraps is impossible. "bootstrapping" also doesn't afford the Q "how much runway do you have?"
"Mana", a game metaphor particularly from the MTG card game, captures some other elements. But doesn't capture the natural running-out-ness of the resource. Huh. "Slack" is kind of the thing, not with literal rope but in a systems sense. slatestarcodex.com/2020/05/12/stu…
Speaking of systems, I'm thinking about how slack in systems often takes the form of buffers.
Fuckit I am really tempted to just call this "runway"/"slack"/etc thing "upward spiral juice". Upward spiral juice is fuel for upward spirals, and if used effectively generates more of itself. Okay, now what is that? That's a "seed": Plant, water, wait→moar seed. 🥜🌱🚿⏳ → 🥜
"Seed capital" is a phrase. Maybe we can make it richer. There are some concepts of "don't eat your seedcorn" but ultimately if you're starting a 1-person business then your own need to eat is actually a major thing you'll need to invest your seed capital into! 🙃