In typical 37signals fashion, the wisdom in these pages is edgy yet

Start a business, not a startup
Ah, the startup. It's a special breed of company that gets a lot of attention
(especially in the tech world).
The start up is a magical place. It's a place where expenses are someone
else's problem. It's a place where that pesky thing called revenue is never an
issue. It's a place where you can spend other people's money until you
figure out a way to make your own. It's a place where the laws of business
physics don't apply.
The problem with this magical place is it's a fairy tale. The truth is every
business, new or old, is governed by the same set of market forces and
economic rules. Revenue in, expenses out. Turn a profit or wind up gone.
Startups try to ignore this reality. They are run by people trying to
postpone the inevitable, i.e., that moment when their business has to grow
up, turn a profit, and be a real, sustainable business.
Anyone who takes a "we'll figure out how to profit in the future" attitude
to business is being ridiculous. That's like building a rocket ship but starting
off by saying, "Let's pretend gravity doesn't exist." A business without a
path to profit isn't a business, it's a hobby.
So don't use the idea of a startup as a crutch. Instead, start an actual
business. Actual businesses have to deal with actual things like bills and
payroll. Actual businesses worry about profit from day one. Actual
businesses don't mask deep problems by saying, "It's OK, we're a startup."
Act like an actual business and you'll have a much better shot at succeeding.

---

---

Building to flip is building to flop
Another thing you hear a lot: "What's your exit strategy?" You hear it even
when you're just beginning. What is it with people who can't even start
building something without knowing how they're going to leave it? What's
the hurry? Your priorities are out of whack if you're thinking about getting
out before you even dive in.
Would you go into a relationship planning the breakup? Would you write
the prenup on a first date? Would you meet with a divorce lawyer the
morning of your wedding? That would be ridiculous, right?
You need a commitment strategy, not an exit strategy. You should be
thinking about how to make your project grow and succeed, not how you're
going to jump ship. If your whole strategy is based on leaving, chances are
you won't get far in the first place.
You see so many aspiring businesspeople pinning their hopes on selling
out. But the odds of getting acquired are so tiny. There's only a slim chance
that some big suitor will come along and make it all worthwhile. Maybe 1
in 1,000? Or 1 in 10,000?
Plus, when you build a company with the intention of being acquired,
you emphasize the wrong things. Instead of focusing on getting customers
to love you, you worry about who's going to buy you. That's the wrong
thing to obsess over.
And let's say you ignore this advice and do pull off a flip. You build your
business, sell it, and get a nice payday. Then what? Move to an island and
sip pina coladas all day? Will that really satisfy you? Will money alone
truly make you happy? Are you sure you'll like that more than running a
business you actually enjoy and believe in?
That's why you often hear about business owners who sell out, retire for
six months, and then get back in the game. They miss the thing they gave
away. And usually, they're back with a business that isn't nearly as good as
their first.
Don't be that guy. If you do manage to get a good thing going, keep it
going. Good things don't come around that often. Don't let your business be
the one that got away.

---

---