Ask HN: What do you say when people ask how much your company makes?
Every time I'm interviewed, I get asked how much my company makes. Because I'm small, I always hesitate to say. But I like the idea of being transparent. Do you tell people how profitable you are? Should you? What's your argument for or against?
5 comments
In America there's an acceptable level of opacity when answering monetary questions. I'd be vague while also communicating information. Unless you're answering legal questions during due diligence, an answer such as "profitable" would work well to communicate your success while remaining private about your worth.
I don't own a company (yet). But if I were asked, I would probably say "Not enough, that's why I keep working."
I took a business class by the SBA, and while I forgot some of the finer details, the picture was: you shouldn't tell people how much profit you make.
I took a business class by the SBA, and while I forgot some of the finer details, the picture was: you shouldn't tell people how much profit you make.
Thanks for the response. Do you remember why you shouldn't tell people? In case they want to buy you?
I get that question all the time.. and my answer is always that my start-up is profitable. That means we cover all expenses (excluding salaries, but i don't mention that, it's a start-up!). So, even if we make $10 over the expenses.. we consider ourselves "profitable".
And anyway, no-one should be entitled to a more deep answer unless they are seriously thinking to buy/invest.
My2cents
Thus, not profitable? Even if you aren't deducting market rate salaries, you should at least include some little stipend for you to live in the profit calculation, right?
I always find when startups say they are profitable they may as well say nothing. It is like showing vanity metrics up-to-the-right graphs.
Having said that it is pretty tough to answer either way since "no comment" comes across as douche-y. Being completely transparent might not be a good idea either. In conclusion I hesitantly agree with the "we're profitable" crowd.
Yeah, this week I found myself giving the "I'm not willing to share" answer, and hated myself for it as soon as it came out of my mouth.
Unless I'm discussing it with a mentor or someone else who I -want- to know my revenues, I usually just say "I'm very happy with how things are going".