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by JacobAldridge 5255 days ago
There are two risks if you start the consultancy firm first. Both of these can be discussed with all 3 of you to make sure they do not become a problem later.

The first risk: when you are making money from consultancy, building the startup becomes easy to ignore. You might think "I could code today and earn nothing, or I could charge customers today and make real money". In 1 year you might all be running a small consultancy business making OK money, but not having done much on your startup idea.

The second risk: What if 1 of you works more on the startup than the others? Maybe you agree to share the consultancy money three ways - but that can feel unfair if two people are bringing in money while the third only does the startup. Or maybe one of you decides to do the consultancy only - what happens if the startup becomes really big just after they leave?

So there is no reason not to do the consultancy to bring in money while you build the startup. Just be aware of the risks and discuss them together (and write down any decisions, in case you need that later). Good luck!

2 comments

Appreciate your advice on the risk, I will well put a note on it, from at the first time whoever join and start code on it, i'll ensure all parties understand of what focus exactly are our target, which is not becoming the firm itself, but more like for bootstrapping on our soon becoming products.

I like your advice on the second risk, despite of what i think, other people and circumstance can get effect. i'll more hardly note about it.

Question: What do you suggest to best avoid for the 2nd risk are? about how we run it with along?