Starting a Business, Now or Later?
Caterina Fake of Flickr fame started the discussion saying that it was a bad time to start a business. The points are that 1) Everybody else is starting a company. 2) Your competition just got funded too. 3) Talent is scarce again. 4) You can’t operate in obscurity anymore. 5) Web 2.0 isn’t all that. 6) There’s too much going on.
Now 37Signals chimes in with the counter argument saying that it is a good time to start a business.
Yes, it’s a bad time to start a company on VC diesel, using me-too technology, flaunting your non-existing goods, doing tagging because it’s cool, and spending all your time partying. Guess what? That was never a good idea.
Caterina’s points are well taken, but if you have a business plan that is solid, or are developing an application with a growing cutomer base, are any of theses reasons compelling enough for you not to make the jump? The scarce talent has to the be the most critical of all of these points.
My take is that if you have an idea and can provide a service for money then anytime is good to start a business. Web2.0 hype aside, if you create a product that people use and can somehow generate income, what does that have to do with VC Capital and going to parties with Web2.0 Hipster Wannabes? If you build it they will come.
If the Internet Bubble of the turn of the century taught us anything, it is to build a business on old school tried and true concepts. The most important of which is to have a viable business plan.
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