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There are two kinds of businesses. First, there are so-called "lifestyle" businesses, like bars, restaurants, B&Bs, etc. that people start because they'd rather
by nkohari 19y ago
There are two kinds of businesses. First, there are so-called "lifestyle" businesses, like bars, restaurants, B&Bs, etc. that people start because they'd rather work for themselves than someone else. Most owners of these types of businesses aren't interested in expanding or getting rich -- just doing what they enjoy. Then there are "growth" businesses, like (most) technology startups. Many people who start tech startups are interested in working for themselves, but they are more likely to be interested in expanding the business as well... not to mention the most important fact, that technology companies can expand much faster than other types of companies. As demand increases for, say, a website, it's much easier to scale up the infrastructure by adding new computers than it is for a hotel chain to build new hotels, or a "brick and mortar" retailer to build more stores.
- hhm 19y agoBut you can have lifestyle tech companies too, or can't you?
- bootload 19y ago"... he most important fact, that technology companies can expand much faster than other types of companies. ... But you can have lifestyle tech companies too, or can't you? ..." Facebook & Apple for example?
- imsteve 19y agoBut when you can sell tech companies for 10x yearly income, who's going to hold on to their successful company for that long?