This content was created by Kevin "KD" Dorsey. This content was uploaded by Kevin "KD" Dorsey. This is a YouTube video titled "Grow and Survive During Economic Downturns with Sahil Mansuri" (created 2023-05-02). The excerpt is a monologue by Sahil Mansuri providing practical advice to founders/CEOs on evaluating employers and startups in a down market, emphasizing profitability, monthly revenue vs. spending (burn), runway (cash in the bank), and citing high-profile examples such as Fast and Bolt.
Chapters
How do you evaluate an employer in a down market? It all comes down to profitability. It comes down to whether your company is turning a profit or not. Any company that's turning a profit is completely fine. I mean, completely fine. Maybe too glib, but you're still fine. You control your own destiny. If you make more money than you spend, your company's going to be fine. For 99% of startups, that's not true. You spend more than you, than you make. So then it becomes, how much more are you spending than what you're making? So in some cases, I know companies, you know, famous examples were Fast and Bolt, and you saw some of these high profile ones that were out there and you're going to see a lot more of this. I know a lot of companies, I know a lot of friends of mine who are CEOs who've raised really large rounds of funding on the backs of very, very, very small dollars of revenue and then started spending way more money while the revenue didn't actually increase. In conjunction and simple math, how much do you spend every month? How much money do you make every month? What is the delta between those two things? And then how much money do you have in the bank? That's all you need to know.
