(engineer * number of engineers) - (average monthly payment * number of customers) < 0
An engineer's salary at a small startup is at the very least $50,000, let's just round that down to $5,000 a month, so how long do you think it would take you to reach $15,000 a month in recurring revenue at what are probably $5 a month plans (this does not include any other costs such as office, servers etc). That's about 3,000 users. And that's just to pay a very poor salary with no other kind of expenses.
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Nope, because:
(engineer * number of engineers) - (average monthly payment * number of customers) < 0
An engineer's salary at a small startup is at the very least $50,000, let's just round that down to $5,000 a month, so how long do you think it would take you to reach $15,000 a month in recurring revenue at what are probably $5 a month plans (this does not include any other costs such as office, servers etc). That's about 3,000 users. And that's just to pay a very poor salary with no other kind of expenses.
That's what VC is for.
Not to disagree with your overall point, but $5k/month x 12 months = $60,000/year, not $50,000/year.
(Perhaps you were rounding up rather than down?)
Yeah I completely messed that post up. :P