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The number one biggest risk to a product startup is that it turns into a consultancy/Studio since every half-decent software engineer, designer or project manag
by fergie 6y ago
The number one biggest risk to a product startup is that it turns into a consultancy/Studio since every half-decent software engineer, designer or project manager can be _fairly_ easily rented out for ~$300K a year. Therefore a relatively insecure startup can be turned into a pretty secure studio simply by hiring out expertise to external customers rather than building stuff themselves.
Pretty much the first thing you learn as a startup looking for funding is too keep quiet about any consultancy that your company does.
- balfirevic 6y ago> since every half-decent software engineer, designer or project manager can be _fairly_ easily rented out for ~$300K a year. Did you omit "provided they live in silicon valley"?
- Mauricebranagh 6y ago20 Years ago when I worked for BT the external day rate for a journeyman consultant engineer (MPG2) in the UK was £670 and we where 25% cheaper than many others approx. £900 for someone from the Big4
- ghaff 6y agoYes, but that's not how much the engineer took home. The reality is that $300K/year is still a very good salary for most software engineers in the US today.
- balfirevic 6y agofergie did talk about external rate, not what the engineer takes home. On the other hand, it wasn't in the context of big-name consultancy but that of a little-know small studio.
- ghaff 6y agoAh. OK. Though even for a small outfit I'd expect a fairly good uplift over what the engineer is taking home, especially if the engineer is earning a salary rather than just getting paid hourly when they're working.
- deleted 6y ago[deleted]
- SuoDuanDao 6y agoI thought they meant on the supply side - I imagine most half-decent software engineers would leave a startup for 300K a year almost anywhere
- marcinzm 6y agoYet plenty of engineers leave FAANG for startups.