I decide to start a business. I borrow a million dollars from the bank at 2% interest.
I now have a million dollars cash, and a million dollars of debt. Logically, rather than investing my million dollars of cash in building and growing a business, I should use it to pay off my debt. That’s clearly the the best use for that money.
Do you see how what you’re saying doesn’t make any sense?
What you’re misrepresenting is that its not the millions dollars that is supposed to pay the debt, its the revenue you get after investing that million dollars into the company.
You’re claiming it makes sense for the company to invest a large portion of that revenue in growing the company when the revenue is not even enough to pay back the interest from the bank?
Wait, doesn’t that sounds familiar? That’s basically how they run companies under a venture capital model. Who cares about negative profit as long as you continue growing, baby. I guess you really like how Silicon Valley startups run their business.
I honestly don’t even know how to respond to a comment like this. Every word is such abject nonsense that it’s hard to even figure out where to begin, and I frankly do not have the energy for it.
I decide to start a business. I borrow a million dollars from the bank at 2% interest.
I now have a million dollars cash, and a million dollars of debt. Logically, rather than investing my million dollars of cash in building and growing a business, I should use it to pay off my debt. That’s clearly the the best use for that money.
Do you see how what you’re saying doesn’t make any sense?
What you’re misrepresenting is that its not the millions dollars that is supposed to pay the debt, its the revenue you get after investing that million dollars into the company.
You’re claiming it makes sense for the company to invest a large portion of that revenue in growing the company when the revenue is not even enough to pay back the interest from the bank?
Wait, doesn’t that sounds familiar? That’s basically how they run companies under a venture capital model. Who cares about negative profit as long as you continue growing, baby. I guess you really like how Silicon Valley startups run their business.
I honestly don’t even know how to respond to a comment like this. Every word is such abject nonsense that it’s hard to even figure out where to begin, and I frankly do not have the energy for it.
Now you know how I feel reading your comment. It made zero sense, so it was easy to counter.