[nlh]

Very good points - thanks!

This helps me clarify my thinking a bit: I think the 37signals approach is actually a good one. The key there is that the team stays together, works together, and evolves together - even if the actual project of the day isn't directly related to the company's "core."

I guess what I'm concerned about are the situations where the founders' attentions are split. "Sorry guys, I can't make this big pitch meeting because my other job needs me" or "Yeah I'd love to be there for the big push before our demo, but I have to get up early tomorrow for a meeting at my other job", etc. That's the stuff that's potentially very difficult.