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The best way to manage a fledgling business is to be impatient for profit but patient for growth.

Stashed in: Startups, Risk!, Groupon, Business Advice, Growth Hacks!, Monetization

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This HBR article points out that rare is the company like Facebook or Amazon that achieves huge growth BEFORE demonstrating a profitable business model.

In both of those cases -- as well as companies that WERE profitable before scaling like eBay and Google -- the main asset demonstrated significant NETWORK EFFECTS.

Groupon has neither found a profitable business model, nor does it have network effects.

This could be a cautionary tale in the making.

Read more:

The Bubble IPOs Convo also discusses Groupon and Zynga and questions whether these companies have demonstrated sustainable value:

Also, don't mean to be alarmist but Groupon might be running out of cash:

Groupon's SEC filing disagrees.

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