Companies and Cash Flow, or, Why Assume They’re Dumber Than You?
In discussing the launch of Square today on Twitter, someone brought up an argument that I’ve heard from a myriad of different people about a myriad of different services: “It’s gonna fail, they have no revenue stream.”
My reaction to this is one of irrational anger. The question seems to me to make some faulty assumptions, most heinous of which is the assumption that the people who came up with the damned idea for the company in the first place never asked themselves that very question.
The fact of the matter is is that if a technology or service is good enough, someone will pay for it. Armchair business managing is pointless- you have no real perspective on what it takes for any business that you perceive as “set for failure” to actually do so.
I’m reminded of the start of the radio broadcasting industry; people then asked, “Who will pay for a message to no one in particular?”
Ultimately, what we as users of cool technology should do is just that: use them. Who cares if I have no clue how they’re generating revenue? They have a lot more at stake than I do; they’ll figure it out.