Companies that lose money suck

Unless a company is creating some non-tradable social good like helping the poor, a company that loses money is basically taking more value from society than it is giving and does not deserve praise. Everyday however we read about big arrogant companies especially on the internet who are losing millions of dollars but get great press because they employ lots of people and use their money to convince everyone they are cool.

Last year a web site call "The Spot" won an award for Best Site of the Year on the web, but today they are bankrupt. People are often faxing me articles of apparently great companies written up in magazines, but like one I got last week, the article mentioned in the midst of all the praise that this company has 160 employees with only 5 million in sales. I have almost one million in sales without any employees, but since I don’t hire a PR firm or have any goons in suits to talk professionally on the phone, no one could give a crap.

If the underlying structure in an organization is unprofitable, unless major changes take place, the company will be gone within a few years. Journalists should be talking about the numerous small rapidly growing profitable companies sprouting up in cyberspace rather than just drooling over the money losing companies that show off at trade shows, raise lots of money, and try to go public after being in business for 25 minutes.

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