Your Competition is Your Costs – REWORK

Remaining profitable in business is a simple equation — sales revenue exceeding operating costs. In this episode of The REWORK Podcast, 37signals’ co-founders Jason Fried and David Heinemeier Hansson explain why controlling costs should be a bigger focus than what your competition is doing. They share some simple strategies for analyzing costs and share why operating without a formal office space might be worth considering.

*Key Takeaways*

00:37 – Why you should stop worrying about what everyone else is doing

02:26 – Focusing on the things within your control

06:58 – Analyzing your business' cash cows, dogs, and shooting stars

11:21 – Budgeting doesn’t always mean being frugal

12:24 – Weighing cost against value

16:16 – What the company gained by letting go of a physical office space

18:31 – Aesthetics of a well-run, profitable business

21:06 – The biggest expenses entrepreneurs often overlook


*Links and Resources*

"You only compete with one thing" from Jason Fried's HEY World – https://world.hey.com/jason/you-only-compete-with-one-thing-48a20d93

"Our cloud-exit savings will now top ten million over five years" from David Heinemeier Hansson's HEY World – https://world.hey.com/dhh/our-cloud-exit-savings-will-now-top-ten-million-over-five-years-c7d9b5bd

37signals' meet-up expenses –https://x.com/jasonfried/status/1852402430136512536

Books by 37signals - https://37signals.com/books

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Once. com – https://once.com/

Campfire – https://once.com/campfire

HEY – https://www.hey.com/

The REWORK podcast – https://37signals.com/podcast/


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Rework is a production of 37signals. You can find show notes and transcripts on our website. Full video episodes are available on YouTube and X.

If you have a question for Jason or David about a better way to work and run your business, leave us a voicemail at 708-628-7850 or email, and we might answer it on a future episode.