The Startup Ideas Podcast
The best businesses are built at the intersection of emerging technology, community, and real human needs.
Policy Scales, Trust Doesn't
As teams grow, relying on trust and convenience for financial controls leads to death by a thousand cuts. Systematic policies and friction prevent small mistakes from compounding into major problems
Decision Rule
When choosing between convenience (no limits, trust-based) and policy (limits, approvals, friction), choose policy for anything that could materially impact burn rate
How It Works
Trust works in small teams where everyone knows everything. But as teams grow, small mistakes accumulate - unauthorized subscriptions, personal expenses, forgotten renewals. Policies catch these before they compound
Failure Modes
Avoiding friction because it feels bureaucratic or slows down team
Implementing overly complex policies that create more problems
Not updating policies as team or spending patterns change
Waiting until after problems occur to implement controls
Example Decision
“Instead of giving unlimited corporate cards to all employees, implement $500 spending limits with manager approval for overages, weekly expense reviews, and merchant category blocks to prevent personal use.”