it’s hard to overstate how valuable it is to keep your personal burn rate low. it probably 10x’s interesting opportunities available to you.
— Sam Altman (@sama) August 15, 2014
Every so often, the startup ecosystem becomes all abuzz with discussions on certain entrepreneurial points. The last two weeks have been full of posts about startup burn rates:
In Atlanta, I think the prevailing spirit is to be even more cautious about burn rates. Things do not cost as much in Atlanta as they do in most other startup hubs. It is very possible to bootstrap (or raise minimal outside investment) here, but it is important to keep burn rates low.
I think the single biggest factor in the ability to hold burn rates low is to keep your personal burn rate low. If you live frugally personally, you will figure out how to be prudent in your startup as well. And Sam is right, it truly does 10x the number of interesting opportunities available.
Personal burn rate is also the biggest factor preventing otherwise stellar entrepreneurs from throwing their hat into the ring.
What are your thoughts on burn rates?