The Built To Last Or Built To Sell: Is There A Difference? panel at Web 2.0 Expo examined the economical, social, and business impact of building companies to last vs. building them to sell.
- You need to answer a question for yourself when you start a company: do you want control or success?
- There’s a difference in how hard it is to built a product vs. build a company. Products can be sold much easier then companies.
- If you build to sell, you want to take less money up front to enable that.
- As a result, you should make a decision up front whether to build to last or sell.
- Surround yourself with people that can help you grow your business.
- A lot of ideas currently being developed out are just parts of larger business models. That’s why they are open to selling.
- Venture Capitol economics are that most companies will fail. When a company takes an early exit, that might not be good for VCs. They might not want only want to make a 5-6 times return. A larger return on investment runs their business model.
- Entrepreneurs are optimists by nature. 39% of people in US think they will be in the top 1% of earners.
- Optimism clouds your ability to decide rationally when to sell or not. Most decisions are based on emotional considerations and not objective analysis.