From a tweet cited in the article (not the author):
> i think @dfjjosh's rule of 50% of ARR to operate and invest without $$$ stress is a really good one. use debt to hack it.
What's the point of taking on debt just to have more cash on hand? Is this a startup-y "growth über alles" type of mentality or is it found in the larger business world as well? I don't see how increasing your burn rate just to have more cash in the bank is a good business decision, especially when you'll pay a premium to have that cash in the form of interest or loan origination.
> i think @dfjjosh's rule of 50% of ARR to operate and invest without $$$ stress is a really good one. use debt to hack it.
What's the point of taking on debt just to have more cash on hand? Is this a startup-y "growth über alles" type of mentality or is it found in the larger business world as well? I don't see how increasing your burn rate just to have more cash in the bank is a good business decision, especially when you'll pay a premium to have that cash in the form of interest or loan origination.