The Thing That Seems Like A Bubble

December 19th, 2005

There is an ever-increasing buzz and feel that a lot of the startups out there are being built solely for the intention of flipping it to a larger company for a big payday. What’s also shocking about it is that many of these new services are being launched with no revenue model in site.

Don’t get me wrong, if some guy in his bedroom programs up a cool application that is useful and the only revenue stream is Adsense, then that’s just fine. But if a team is being built around it, and people are working full time, Adsense alone just isn’t going to cut it.

Greg Yardley points out the right way to do it. And that is planning your startup to make serious money. I repeat, serious money. Not only does that mean your business can stay alive and work well if you’re never acquired, but it actually makes it much more likely that you’ll get acquired if you have an exciting business with good revenue.

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Entry Filed under: Random, Startups