Time vs. Money

Yesterday I had a long conversation with an entrepreneur about the relative value of time versus money in start-ups. Our conclusion:

Time is more valuable than money

Of course both are critical assets of any business – particularly an early stage business – but often companies make the wrong trade of time vs. money. This happens in dozens of different ways at businesses every day and ranges from big decisions on accelerating hiring to small ones like how to prioritize product features. I’m not suggesting that companies should run out and double their engineering teams (which would presumably accelerate the timing of their product at the expense of cash burn) but I am saying that in many companies the fundamental understanding of the time/money equation is tilted in the wrong direction.

Worth thinking about for your business as well.

  • Brings to mind a few quotes:rnrnSpace I can recover. Time, never. – Napoleon Bonaparte rnrnTime is the sole capital of people whose only fortune is their intelligence. – Honore de BalzacrnrnYou can do so much in ten minutesu2019 time. Ten minutes, once gone, are gone for good. Divide your life into ten minute units and sacrifice as few of them as possible. – Ingvar KampradrnrnPeterrnrnBy the way, I have a short video on money raising: rnrnhttp://smartstartup.typepad.com/my_weblog/2010/11/how-to-raise-startup-capital-or-not.htmlrnrnrn

  • @Peter – Loved the quotes. I see proof of this every day. As an entrepreneur, I spent countless hours doing work that should have been delegated, but in the early stages of a business, many owners have more time than money.nn@Seth – Since many of our clients are startups, some are still caught in the “I can do it myself” mentality, not prepared to trust an outside consultant with their precious money. How does one overcome that issue, particularly with fledgling businesses?

    • Kyle – I think it’s the age old best reference is from a friend adage. It’s really hard to get start-ups to trust something they haven’t done before and the best way to overcome this is to have someone they know and trust make the suggestion/recommendation.