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I've always had mixed feelings about this sort of project. On the one hand, it _could_ turn out wonderfully for all. Spend a few years playing with some fun t
by nlh 15y ago
I've always had mixed feelings about this sort of project.
On the one hand, it _could_ turn out wonderfully for all. Spend a few years playing with some fun tech, don't have to worry too much about profits/long-term viability - just keep enough cash to operate, and exit with a nice chunk of change and move on to the next.
On the other hand, it's a VERY risky strategy -- it doesn't necessarily build a fundamentally strong business (it certainly might though) and if the exit doesn't happen (or doesn't happen quickly enough), the company could very easily vanish with nothing left to show for itself.
I personally prefer the more fundamentally sound approach - build something great, viable, and long-term successful. Maybe you exit with a huge acquisition. Maybe you exit with an IPO. Maybe you don't exit and reap profits for years to come. But that doesn't mean that the flipping approach doesn't have the potential to reward or should be avoided (heck plenty of people are doing it and making a ton of money).
I'd say the key points to consider are these:
1. Do _you_ believe this is something that one of the large corporate/whoevers will want to buy in a few years? Or do you think that's an excuse for a lack of a viable business model?
2. Do you like the project? Regardless of exist, it'll be your home for a few years, so you should enjoy the work and make sure it will help your long-term aspirations beyond the next few years.
3. Since the goal is a flip, that means that equity is key. Will you have enough equity to reap the benefits? If the flip doesn't happen, will you be paid enough to make the time spent worthwhile?
Just consider all angles and make sure your interests are looked-after. That's the best advice I can offer.