Paul Graham · 2009 · 4 min
Ramen Profitable
Make enough revenue to pay the founders' living expenses. Suddenly, you have infinite runway.
Key Takeaways
- 01Ramen profitable ≠ a real business. It's a state where the company can survive without raising again.
- 02Investors treat you completely differently once you don't need them. That's the whole point.
- 03Most startups can hit ramen profitable on $5–15k MRR. It is achievable in months, not years.
Distilled
The cheapest insurance policy a founder can buy is to get to ramen profitable. It changes how you negotiate, who you hire, and which fights you pick. It also changes how you sleep.
The hidden trap: founders chase 'real' profitability and skip ramen profitable, then run out of money 8 months later. Hit the small bar first.
Source
paulgraham.com — Ramen Profitable →We summarize so you can decide whether to read the full piece. Always read the source for context.