Why do startups burn so much money?

Start with one cup, one order, one customer. Does it make money or not?

An order can lose money today and still be worth it, if the customer stays. Here’s how to tell.

Some customers are worth more than their own orders, because each one makes the product better for the rest.

Burning money for growth is also a bet on costs: the bigger you get, the cheaper each unit becomes.

Winning customers is expensive. Keeping them depends on how hard it is to leave.

Every one of these bets needs one thing to work: enough cash to survive until it pays off.