Playbook / Lessons / Money: pitch, investor email
Cash-flow businessTake profits while the good years last
Hansson uses the Flip camera, which sold well until phones replaced it, to argue that a product's best run may be short. In his view a business should take profits along the way instead of investing everything in future growth. He guesses that Dropbox and Evernote did not heed this lesson.
“Don’t just keep putting it all on red and rolling.”— David Heinemeier Hansson, Making money along the way, Sep 2015
Do this
Decide this week what fixed share of this quarter's profit you will take out instead of reinvesting.