Insights Digest: Building to Profitability

Last month, we connected with founders during an engaging Masterclass featuring Peng T. Ong and Nguyen Quoc Toan, sharing their first-hand experiences building and scaling companies to profitability. The fascinating juxtaposition of their diverse perspectives sparked intriguing discussions.?Even though they may seem very different in backgrounds, education, and industry experiences, they actually couldn’t be more similar in their philosophies – sharing the same commitment to value creation and impact measured by profitability and sustainability, which in their views are core principles of building successful businesses.

Now, let's delve into the key takeaways from their insightful discussions:

1?? Balancing Profitability & Value Creation: Peng & Toan

Profitability has to be built in from the start; it’s not a paradox but a seamless transition into sustainable long-term value. Balancing short-term profitability with long-term value creation is crucial, as they mutually reinforce.

2?? Scaling Sustainably in Tech: R+K>1 is Your Formula for SuccessFor early-stage businesses reliant on user growth for profitability, mastering Rτ+Kτ >1 is crucial. This formula highlights the interplay between retaining users and acquiring new users virally to counter escalating CAC and maintain baseline profitability and LTV. If interested, feel free to check out Peng’s blog https://lnkd.in/g2WYT_7D and https://lnkd.in/gTCHR2pz

3?? Fail Fast, Don’t Prolong the Agony

Toan shared an interesting 'Fail Rule': If a project doesn't hit $1 million in 3 years, it's game over. Later, he raised the bar to $5 million within 5 years as the shutdown policy. Never fun to do it, but this Fail Rule has helped his team to stay focused, despite getting to a certain scale.

Thanks to everyone who joined us! Your presence and contributions made the event memorable. Looking forward to the next one – stay tuned!