Re:The bar for success in our industry is too low
by graphene on Wednesday September 02, 2009 @12:53PM
(#800559)
technically, I don't think that's quite true; a company can book profits even as it's paying off a loan which is bigger than the profits or even than total turnover as long as (operational cash flow) - (interest payments) > 0.
I think it's perfectly possible for, say, a company funded by VCs to be profitable from the start of operations, since the money that bought the equity isn't expected to be paid back.
I think it's perfectly possible for, say, a company funded by VCs to be profitable from the start of operations, since the money that bought the equity isn't expected to be paid back.