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Comment on Ask HN: How often does technical debt lead to the failure of a startup?

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Try framing it as interest payments:

When you get X customers, you'll have to commit Y resources to fix this one thing.

Taking on technical debt is a smart thing in early stages because it's essentially low-cost, non-dilutive financing. So you should recognize that very real benefit.

However, if they are young startups they might not even realize they are doing this smart thing. You can add value by telling them are smart and giving them the schedule of technical interest payments they will have to pay one way or the other if they are still in business.

YadiOP

Hey that is another interesting point, thanks:

"the schedule of technical interest payments they will have to pay one way or the other if they are still in business."

Glad you found it useful.

Another reason technical debt is useful, as touched on elsewhere, is that it's something of a real option.

Options have value - think e.g. Oil futures which are the right but not the obligation to purchase X at Y price in the future.

Real options also have value - certain investment decisions can be delayed (e.g. building a plant or refactoring code) and by delaying them you create an option. Here the option is the right but not obligation to write better code that will actually work :)

I know it's hard to convince clients to change their ways, I have found that telling them they are doing great things they didn't even realize is a good way to start before you "bring the pain". Best of luck!

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