This interview with MetaFilter founder, Matt Haughey, has made the rounds. It’s an excellent read, a difficult story, and is filled with a ton of business lessons.
My two biggest takeaways from it were regarding (a) the importance of income diversification and (b) the importance of an business operations savings fund that holds at least 6 months of operating expenses.
While these two principles have always been a part of how I run my business, reading Matt’s story about MetaFilter reminded me not to get lazy about them at all.
I also was thinking about how the fine line it is between running a bootstrapped business that has plenty of savings in the bank but that also doesn’t operate with a scarcity mindset, and becoming fearful or anxious about cashflow.
The key there, I believe, is having the long-game in mind. It’s not wise to hoard all your cash, but neither is it wise to spend too quickly. Once you have that healthy amount in savings, then stop saving and start investing more aggressively.
Related reading and wisdom: