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Why We Choose Profit at Fundry

Written by Niek | Dec 22, 2024 6:09:36 AM

In a world where many companies prioritize rapid growth over financial stability, we’ve chosen a different path: running a profitable, financially responsible business. While others celebrated burning cash, we celebrated profits. And we still do.

Profit is Practical

Unlike companies that reinvest most or all earnings back into the business, we take profits annually in the form of distributions (as an LLC). This approach reduces risk year by year. Companies that continually reinvest increase their exposure to risk. When the inevitable day comes for a company to close its doors, we will have enjoyed the rewards along the way instead of relying solely on uncertain future outcomes. Simply put, we prioritize the guaranteed present over the speculative future.

Profit Buys Freedom

Profit gives you time and flexibility—the ultimate luxuries in business. As long as you’re profitable, you can explore new directions at your own pace. But if you’re constantly seeking external funding, your time belongs to your investors. True independence comes from generating enough cash to sustain your operations without outside influence.

Profit as a Superpower

Cash is like a stem cell: it can transform into anything you need. When you generate your own cash, it comes with no strings attached. You’re free to use it however you see fit—reinvest, reward employees, or even indulge in your whims. But money from investors often comes with conditions, effectively making it theirs, not yours. We prefer to own our freedom.

We Don’t Obsess Over Valuation

In today’s market, profits can actually hurt your valuation. Strange, isn’t it? We’ve opted out of this game entirely. Instead of wasting energy on valuations and investor pitches, we focus on what matters: our customers and our operations. Zero time is spent worrying about cap tables or term sheets. It’s liberating.

Profit Protects You From Games

Being profitable means you don’t need to play financial games or rely on artificial metrics. You’re running a fundamentally sound business: making more money than you spend. When profit is a requirement, it’s much harder to get caught up in the nonsense.

Profit Keeps Ego in Check

It’s easy to get carried away in business—overhiring, overspending, and overextending. Profit imposes discipline. You make careful decisions about expenses, avoiding unnecessary risks. Spending other people’s money is easy, but it fosters bad habits. Spending your own money wisely builds a strong foundation for the future.

Independence Through Profit

When you’re profitable and debt-free, you owe nothing to anyone except your best effort. This clarity and peace of mind are invaluable. The only stakeholders we’re beholden to are ourselves and our customers.

Redefining FU Money

“FU money” isn’t about millions. It’s about being an independent, self-sustaining entity. With just $1 in annual profit, you’ve achieved a level of freedom where you don’t have to compromise your values or bend to outside pressures. That’s true autonomy.

Stability in Unstable Times

Economic downturns and funding freezes can devastate companies dependent on external cash. But profits insulate you from market volatility. During past financial crises, our profitability allowed us to thrive while others struggled. Today, as interest rates climb and funding dries up, our debt-free status shields us from the chaos.

Simplicity Through Profit

Our LLC structure keeps things simple: fewer lawyers, accountants, and bureaucratic hurdles. A lean corporate setup lets us focus on what really matters—building great products and taking care of our employees and customers.

Profits Sharpen Focus

Profitability forces you to prioritize. It keeps you from chasing every possible direction and instead directs your attention to the core of your business. This focus prevents bloat and ensures efficiency.

Stability for Customers

Unprofitable companies often mask their fragility with big marketing budgets and high customer counts. But when financial pressures mount, the fallout—layoffs, reduced service quality, and damaged morale—affects customers. In contrast, profitable companies offer stability, reliability, and trustworthiness, creating a better experience for everyone involved.