The Entrepreneurial Mind: Talking the Talk and Walking the Walk to Bootstrapping
Teluu is a bootstrapped company. Being "lean" is not a slogan, it is a necessity. But I wonder if you can take things too far. Can the time saving of going by plane be used for something that generates revenue? Maybe close a sale? Make a customer (or more) happy?
This is what they call "opportunity cost". I think executives like in the example above should be good in driving their company, not a van (except if it's a parcel delivery company maybe, but I digress).
To be fair though, if I were in the same situation, I would probably drive as well. The two of them probably talked about the company anyway, coordinating, creating new strategy, away from the pressures of day-to-day management. It's like an executive retreat, a management challenge: how to get two people to Chicago as cheap as possible.
So although I would have quoted the example with a bit more context, not just "saving hundreds of dollars", I totally grok their way of thinking.
What do you think? Do you have examples where the financial savings is not worth the opportunity cost?
could easily have taken a flight to a conference in Chicago, a little more than an hour away by plane. Instead, they drove five and a half hours in a van, saving Fastenal hundreds of dollars.
Teluu is a bootstrapped company. Being "lean" is not a slogan, it is a necessity. But I wonder if you can take things too far. Can the time saving of going by plane be used for something that generates revenue? Maybe close a sale? Make a customer (or more) happy?
This is what they call "opportunity cost". I think executives like in the example above should be good in driving their company, not a van (except if it's a parcel delivery company maybe, but I digress).
To be fair though, if I were in the same situation, I would probably drive as well. The two of them probably talked about the company anyway, coordinating, creating new strategy, away from the pressures of day-to-day management. It's like an executive retreat, a management challenge: how to get two people to Chicago as cheap as possible.
So although I would have quoted the example with a bit more context, not just "saving hundreds of dollars", I totally grok their way of thinking.
What do you think? Do you have examples where the financial savings is not worth the opportunity cost?
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