Leases kill

Last night Fred and I talked about how many companies were killed by their huge leases (Kozmo, Industry Standard, etc). He wrote up the Kozmo story today… it’s a warning for any entrepreneur: if you’re going to get an office–and you probably shouldn’t unless you’re in year two and have over 10 people–don’t sign a huge long term lease. Sign small, short term leases. If the landlord won’t give you one keep looking… better to work from home than have your business killed by some landlord who would rather see you go chapter 11 over letting you out of a lease.

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