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by hvidgaard 1584 days ago
From your example the consultancy work wasn't the problem, it was mismanagement of the of the startup.

The only alternative to consultancy should be to close. If you can let go of 1-2 unproductive employees, that should happen before taking on consultancy work. It should happen in any circumstance anyway, but taking on work to pay for other peoples wage and not getting value for that is a recipe for failure. If on the other hand it was high performance developers that really made progress on the core focus on the business it's probably okay.