Silicon Valley's Cashflow Blindspot

Shaan Puri reflects on his evolution from a Silicon Valley mindset focused on high-growth startups to appreciating cash flow businesses and international talent. Through his podcast and personal experience, he's discovered the value of profitable businesses outside the typical startup model.

Key Points:

• Silicon Valley Startup Experience:

  • Previously ran a company burning $3M/year pre-product market fit
  • Had 10-12 engineers in SF costing $200k each, below market rate
  • Engineers could have made $400-500k at Facebook
  • Found high burn rate very stressful

• Shift to International Hiring:

  • Now has 15-20 international employees across various companies
  • Salary ranges:
    • $800-1000/month for customer support and personal assistants
    • $2500-3000/month for higher roles
    • Some exceptional performers earn US-equivalent salaries
  • Key benefits:
    • 10x cost savings compared to US hiring
    • Highly educated, skilled workforce
    • Less management overhead, especially with Filipino workers
    • Profitable from day one with international teams

• Business Model Evolution:

  • Previous focus: "10x every year" growth mindset
  • Current focus: 30% annual returns through profitable businesses
  • Learned about non-Silicon Valley businesses through podcast audience
  • Getting "MBA on non-Silicon Valley businesses"

• Management Style Preferences:

  • Dislikes extensive management requirements
  • Appreciates Filipino workers' self-sufficiency
  • Prefers simple communication:
    • Daily login/logout messages
    • Clear task completion updates
    • Minimal need for career development conversations

• Key Learning:

  • Silicon Valley often overlooks profitable business models
  • International talent can provide both cost savings and quality work
  • Cash flow businesses can be more sustainable than high-growth startups
  • Different cultures have different workplace expectations and needs