[the_bear]

I agree with a lot of what you're saying, but I don't think it's true that optimizing for profits makes you more competitive.

When a company makes a profit, it essentially means that they're capturing wealth that could have otherwise gone to the customer. The more wealth the customer captures, the more they want to use your product or service. This is why so many startups are unprofitable for so long. They burn money in order to compete with more established players until eventually they dominate the market, and then they turn the knobs to become profitable. All else being equal, profit is at odds with competitiveness.

Of course if you have outside investors (especially institutional investors) they'll eventually require you to start optimizing for profit. But it's not to be competitive, it's because the competition is now over because they've effectively monopolized their space, and now it's time to cash in.

I'm a big proponent of bootstrapping, and this is why. In the early days, you have to be a little bit profitable (you can't burn money for years like a Softbank-backed company would) but once things start working, you can stay in the "a little bit profitable" world which allows you to treat customers and employees well, instead of moving into the "maximize profit" world that most successful companies end up in.