Paul Graham's essay on startup survival — introducing the concept of 'default alive' vs. 'default dead' and arguing that founders' greatest failure is running out of money before achieving profitability.
Default alive / default dead framework: given current expenses and revenue growth rate, will the company reach profitability before running out of cash? Most founders don't calculate this — Graham argues it should be the constant background calculation. Ramen profitability: the minimum revenue needed to pay for the founders' food — establishing even this floor changes a company's negotiating position and psychological state fundamentally. One of the most operationally useful essays for early-stage founders.
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