Doing Business, Profits, and Startups

By , November 6, 2015

The goal of most businesses, I believe, should be to earn a profit from the sale of goods or services.

Over the past 20+ years, we’ve seen a succession of bizarre business models, in which little thought was given to “profit,” but instead to intermediate metrics (our web site needs visitors, eyeballs, clicks, engagement, etc.).  Many dot-com companies succumbed to ‘perverse incentives.’

When I was a consultant, I refused to work for companies that didn’t view “revenue” or “profit” as significant measures of their operations.

After I quit consulting, I joined Hurricane Electric Internet Services, which is a company that embodies many of my values. (I became a customer a decade earlier.)

Often, people who aren’t familiar with Hurricane Electric (HE) think that it’s a “startup,” and they’re surprised to learn that HE has operated for 22 years … without ever taking venture capital, and without plotting an “exit strategy.”

Instead, the company’s founder has always wanted to provide meaningful services to customers, and earn a profit from the sale of those services.  Period.

I’m growing very comfortable here.



This post is also published at LinkedIn.

One Response to “Doing Business, Profits, and Startups”

  1. Elaine Gerstley says:

    Thanks for sharing valuable information with us.

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