Michael Svensen

1/ Cash is king, but what is cash? Most startups focus on revenue, and most mature companies focus on profits. But what really matters is Free Cash Flow (FCF). Do you know what it is? And more importantly - how to maximise it? Let this be the one thing you learn about business today 👇

@GasperCrepinsek Kudos, @GasperCrepinsek 👏 is Gumroad the only platform you use to sell? And have you considered others?

When getting into entrepreneurships, should you build from scratch or buy? I've done both, and I think that most people are tempted to build because it doesn't require capital. But it does, though!

After months of building my accounting practice, I realize I need to resume writing. Meanwhile, I've also been involved in several other projects. More to come!

“Alcohol is the only drug where if you don’t do it, people assume you have a problem.” I find this kind of hilarious. In Norway, we have profound drinking culture. We are supposed to get smashed every time we have the opportunity. I’ve dialed back immensely, primarily due to shifting focus. I really value good sleep. I love to have the energy to work hard, run long distances and still have something left in the tank to play with my son. But people assume I have a problem..

I've recently started using no-code tools instead of wireframing. This might be my new obsession 🤩

“You are not afraid of the future when you are moving towards it.” Fear loves inaction. But even small steps toward your goals make the future less intimidating. I mean, what’s to lose here? You don’t have to quit your job, you don’t even have to commit to a gym membership, just do something. Take action. What’s one small action you can take today toward your future?

When I launched my first project, I wasted weeks tweaking details no one would notice. I’ve even done this for internal powerpoints. “Perfection is procrastination masquerading as quality control.” Just ship the damn thing! #startup #product

I get so many questions on why startups are so sensitive about higher interest rates. It’s good to revisit the basics from time to time: 𝟭. 𝗙𝘂𝗻𝗱𝗶𝗻𝗴 𝗕𝗲𝗰𝗼𝗺𝗲𝘀 𝗘𝘅𝗽𝗲𝗻𝘀𝗶𝘃𝗲 When interest rates rise, borrowing costs increase. Startups that rely on loans to scale face higher repayments, leaving less cash for critical areas like hiring or product development. The cost of capital goes up, but the pressure to grow remains. 𝟮. 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗚𝗲𝘁 𝗠𝗼𝗿𝗲 𝗖𝗮𝘂𝘁𝗶𝗼𝘂𝘀 Higher rates mean investors have safer alternatives for earning returns, like bonds. This can make venture capital harder to secure, especially for early-stage startups that aren’t yet profitable. Startups need to demonstrate stronger results to compete for limited funds. 𝟯. 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗦𝗽𝗲𝗻𝗱𝗶𝗻𝗴 𝗦𝗹𝗼𝘄𝘀 Rising interest rates impact customers too. Businesses and consumers with higher loan payments often delay spending or cut back altogether. This can reduce demand for startups offering non-essential products or services, creating a ripple effect on revenue growth. 𝟰. 𝗟𝗼𝘄𝗲𝗿 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻𝘀 Startups often rely on future potential to justify their valuations. Higher rates increase the discount on future earnings, leading to lower valuations. Founders might need to give up more equity to raise the same amount of capital, diluting ownership faster. 𝟱. 𝗖𝗼𝘀𝘁𝘀 𝗖𝗮𝗻 𝗥𝗶𝘀𝗲 Operational expenses are not immune. Higher interest rates might increase costs for leasing office space or purchasing supplies as vendors pass on their added expenses. These hidden costs chip away at margins. 𝗛𝗼𝘄 𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀 𝗖𝗮𝗻 𝗔𝗱𝗮𝗽𝘁 • 𝗣𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘇𝗲 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁: Ensure runway lasts longer. • 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗿𝗲𝘁𝗲𝗻𝘁𝗶𝗼𝗻: Keeping customers is more cost-effective than acquiring new ones. • 𝗕𝗲 𝘀𝗲𝗹𝗲𝗰𝘁𝗶𝘃𝗲 𝘄𝗶𝘁𝗵 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀: Choose initiatives that drive sustainable growth. • 𝗥𝗮𝗶𝘀𝗲 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰𝗮𝗹𝗹𝘆: Lock in capital before rates climb further. Higher interest rates force startups to move away from growth-at-all-costs strategies and focus on profitability and resilience.

Do you spend time on other platforms, or just Twitter/X? I have more success on Linkedin, but that might be because my audience (Norwegians) spend more time there. Not sure. Any other platforms worth investigating for business purposes?

New employee today! 🥳 We are now 3 full time employees, and several working for sweat equity. Startup wibes!

We recently discovered that a couple of competitors started on similar ideas to us. More funding, higher pace. You know what, I don’t want to seem arrogant, but I kind of like it. Competition is fun. #startup

Today, we’re building and decorating gingerbread houses 🎄 Throwback to two years ago, when @BredeBjorhovd and I managed to build a gingerbread incubator. #LFG

Last week I did 80 km running. That’s the sweet spot for me, I think. It’s enough time on me feet to stay in shape, but does not take too much time from other important endeavours. What’s your sweet spot?

I get that quotes are kind of cliché, but after listening to Modern Wisdom, I think cliché quotes are cliché for a reason. “Stop complaining about the results you didn’t get from the work you didn’t put in.” At least where I’m from, this couldn’t be more true. So many people complain, but do not put in the work.

You had me at herringbone flooring. I don’t know what it is about herringbone flooring and wrought iron doors, but they definitely make me throw all financial sense out the window. This is not a post where I build a responsible personal brand, but one where I showcase the problem of being an impulsive entrepreneur who loves taking risks. 𝗜𝗻 𝘀𝗵𝗼𝗿𝘁: The first employee joins in November. The second employee joins in December. On April 1st, we’re moving into offices with space for 30 people. Yes, this is the perfect level of irresponsibility. Not only are we taking over the offices, but we’re also helping design them. Meeting rooms, kitchen, phone booths - you name it. Yesterday, we had our first meeting to plan the layout, and I’m buzzing. How important is it to have sparkling water on tap? Very important! #offices #

Are multiple degrees worth it? 🤔 If you’re studying finance and law, what’s the end goal? As an employer, I’d rather hire a finance expert and a law expert than someone splitting focus. Would you use Google if it tried to be a search bar, gaming engine, and ecom store all at once?

The thing about building companies is that most of what you do isn’t that noteworthy. I mean, sales are awesome for me, but for my followers, closing a client doesn’t mean much. Building an effective process is amazing, but you’re not going to get many DMs about it. Posting that job ad and making the next hire? A big achievement for me, but not a major highlight for others. The real magic is in making progress, one small task at a time. We can’t IPO every day!

I don’t think there is anything better than signing new clients. Just sayin

All PR is good PR? A prominent Norwegian politician maintains a “wall of shame” for wealthy individuals and founders who have left the country due to a hostile tax regime. Some of these founders were forced to pay taxes amounting to several times their annual income 🤦‍♂️

@ItsAndraz Without fitness, I would be a poor founder. Not just by being in shape, but the hour a day that I work out is absolutely necessary for my mental health

“Fitness or business?” Why not both? A good system makes it possible.