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top   »  small business   »  entrepreneurship   »  default alive vs default dead

Default Alive vs Default Dead

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Default alive is a startup company that is on track to make it to profitability with its current resources. In other words, revenues will cover expenses before cash runs out. The term can also be applied to a program or project that is currently within its schedule and budget.
Default dead is a startup company that doesn't have enough cash to reach profitability. Applied to a project, the term suggests that a project is behind schedule, over-budget or both.
The distinction between default alive and default dead is a consideration in strategy. Default alive initiatives are looking for opportunities to do more. A startup headed to profitability might add new features to its product. An on-track project might be focused on preparing for a smooth launch.
Default dead initiatives may need a new strategy. For example, they might simplify their approach or strip features from a product. Alternatively, if they show great progress they may be able to continue with their strategy by securing additional funds and time.
Default Alive vs Default Dead
Default Alive
Default Dead
Definition
An initiative that has enough cash to complete its mission.
An initiative that has doesn't have enough cash to complete its mission.
Typical Strategy
Do more
Prepare for launch
Sell company
Simplify approach
Cut features
Pitch for money

Notes

The terms default dead and default alive were coined by Paul Graham, a well known venture capitalist and computer scientist. The terms were initially applied to startups but can also be used to describe projects and initiatives of change.

Change Management

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Change
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Change Fatigue
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Choice Architecture
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Impact Analysis
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Nudge Theory
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Pull
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Resistance To Change
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Scope Creep
Sidelining
Status Quo
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