Playbook / Lessons / First customers: the offer, the price

Startups

Aim for customers who cover your living costs

Graham defines ramen profitability as a startup making just enough to pay the founders' living expenses, and says its main importance is that it buys time. He notes that a ramen profitable company does not have to be earning the way it ultimately will. When founders seem unfocused, he sometimes suggests they try to get customers to pay them for something.

“Ramen profitable means a startup makes just enough to pay the founders' living expenses.”— Paul Graham, Ramen Profitable, Jul 2009

Do this

Work out today the monthly amount that covers your living expenses and count how many customers at your price that takes.

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