Breakeven is the term people really should be using. It has been around for a very long time, and it is very clear about what it means.
The thing is, people want to use the term "profitable" because they want to spin where their business is at.
Operationally break-even would mean your income exceeds your hosting expenses.
Breakeven sans salaries, would imply that you're ramen profitable but nobody is getting paid.
And from there you could say "we're profitable enough to hire one programmer, but no more" or whatever.
The thing is people would rather say "ramen profitable" than break-even. Sure, ramen profitable has a specific meaning with more nuance, but it also has the magic word "profit" in it.
I think founders and investors should both work towards more level headed straightforward language.
I've been watching a lot of startup pitches lately, and combined with what I've seen in the last 2 decades, hyperbole has become quite the turnoff. Maybe it works on investors, they sure all seem to do it (e.g.: watch the Founder Fuel pitches) but for me it undermines credibility.
Kinda like dealing with a used car salesman-- have I got a startup for you! It has the most excellent traction you've ever seen!
The thing is, people want to use the term "profitable" because they want to spin where their business is at.
Operationally break-even would mean your income exceeds your hosting expenses.
Breakeven sans salaries, would imply that you're ramen profitable but nobody is getting paid.
And from there you could say "we're profitable enough to hire one programmer, but no more" or whatever.
The thing is people would rather say "ramen profitable" than break-even. Sure, ramen profitable has a specific meaning with more nuance, but it also has the magic word "profit" in it.
I think founders and investors should both work towards more level headed straightforward language.
I've been watching a lot of startup pitches lately, and combined with what I've seen in the last 2 decades, hyperbole has become quite the turnoff. Maybe it works on investors, they sure all seem to do it (e.g.: watch the Founder Fuel pitches) but for me it undermines credibility.
Kinda like dealing with a used car salesman-- have I got a startup for you! It has the most excellent traction you've ever seen!