Nov 19 2010

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.