This is a necessary, if painful, lesson.<p>I remember the layoffs right before leaving LivingSocial in 2012. A raw, human catastrophe. Watching friends pack up their things, who had been sold on the culture and vision of what the company could be, was an eye opening experience.<p>This is why you focus on business fundamentals. Not because it is sexy, not because you can tell ProductHunt about your run rate, and not because you want impress investors.<p>Because if you fuck up, everyone who depends on you gets fucked.<p>A few words of advice:<p>- Before you raise money, ask yourself if that valuation is realistic or aspirational. If it is aspirational, know that you have to reach that valuation without raising another cent, just to break even. Ask yourself if you are default dead or alive.<p>- Before you start a company, ask if it is solving a problem for customers or your desire &quot;to be an entrepreneur.&quot;<p>- Before you hire anyone, ask if their position is a need to have or a nice have. Like customers, few businesses can afford &quot;nice to haves&quot;<p>- There is always capital available for businesses with strong fundamentals who are solving real needs.<p>Layoffs are like throwing up from drinking. Not fun and nearly always your (the founders&#x2F;managers&#x27;) fault.<p>- Pace yourself.<p>- Build a company you&#x27;re proud of.<p>- Build something that people need.<p>- Growth is great for slide decks, but employees can&#x27;t use it to pay rent. Don&#x27;t chase hypergrowth as an end in itself.<p>Markets can stay irrational far longer than you can stay solvent, but they can also snap back to reality before you can wake-up.