Technical Debt
Definition
The implied cost of future rework caused by choosing a quick, easy solution now instead of a better approach that would take longer.
What is Technical Debt? | early.tools Glossary
Technical debt happens when teams ship fast by cutting corners — using workarounds, skipping tests, or building features without proper architecture. Like financial debt, technical debt accumulates interest: the longer you wait to fix it, the more expensive the fix becomes. A startup might ship an MVP with hardcoded values and manual processes to validate the market quickly. That's smart debt. But if those shortcuts remain as the product scales to thousands of users, they become expensive: slower development, more bugs, harder to onboard engineers. The key is knowing which debt is strategic (speeds you to validation) and which is reckless (saves hours now, costs weeks later). Good founders track technical debt explicitly and pay it down before it compounds into a crisis.
Examples
Example: A SaaS startup hardcodes API rate limits instead of building a proper quota system. Works fine for 50 beta users. At 5,000 users, every rate limit change requires a deploy, and the team spends 10 hours/week manually adjusting limits.
Related Terms
MVP (Minimum Viable Product)
An MVP is the simplest version of your product that solves the core problem for early users. It has just enough features to validate your idea and gather feedback—nothing more.
Product-Market Fit (PMF)
Product-market fit happens when your product solves a real problem for a specific market so well that people actively seek it out, use it regularly, and tell others about it.