The problem with tech startups

Philip Morgan

Part of the problem with early stage tech startups as clients is that tech practitioners (or former practitioners) run the business. This undermines your power/control/value.Additionally, you have startup luminaries like Peter Thiel saying no less than 3 times in his book "Zero to One" that a startup should avoid outside consultants because they aren't equity motivated and they don't buy into the startup's mission as deeply as employees will.Also…. startups are invisible until almost too late unless you’re geographically embedded in a startup scene or have a unique rainmaking relationship (with a PE company, etc) that brings you work.But hey, they sure are fun to work with, aren't they? :)I'm not at all sure that fun is worth it, though, in view of the bizdev challenges this type of client presents. And that's without even considering the challenges of pricing your work for startups, who often lack a proven business model that you can help improve (see for more on this pricing stuff).What do you think?

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