Over-Funding Kills Companies 

When an industry operates on the basis of companies paying their customers to use their products, they are buying transactions, revenues and customers with investor money. 

When this behaviour is rewarded by investors, it leads to amplification of the same behaviour. 

After a sufficient period of time, the company forgets that the business is fake and the customer’s behavior is artificial. 

Companies forget to innovate in a customer-focused manner because of excess funds. When they stop feeding the beast, it will run amok. 

Over-funding perpetuates bad habits and kills companies. It takes away the accountability to innovate and solve the customer’s’problem in a sustainable manner. 

If the bad habits don’t die, the company does.

Excerpt from The Golden Tap 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s