Ask HN: review my idea for a consultancy/incubator [slides]

#1

Post by chrisduesing » Sat, Aug 01, 2009, 7:32 PM UTC

I have been considering several ideas for how to get my next startup off the ground without going back to zero income. There are several options available of course, but I wanted to focus on something that keeps paying the bills from the get go and leaves me without investors controlling the company. The idea is inspired by 37signals success turning a consultancy into a product. This takes it to the next level, a cooperative incubator funded by part time consultant work.

Ask HN: review my idea for a consultancy/incubator [slides]
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Re: Ask HN: review my idea for a consultancy/incubator [slides]

#2

Post by aditya » Sat, Aug 01, 2009, 7:42 PM UTC

This would work if you can find the people to make it work, consulting isn't really a "new" route to starting a startup and neither is using consulting income to support it instead of outside money.

The real question is how do you find these "entrepreneurial" people and convince them to join together with you for lower cash and higher risk than they would have if they were working by themselves

Re: Ask HN: review my idea for a consultancy/incubator [slides]

#3

Post by chrisduesing » Sat, Aug 01, 2009, 8:15 PM UTC

aditya wrote: post #2

This would work if you can find the people to make it work, consulting isn't really a "new" route to starting a startup and neither is using consulting income to support it instead of outside money. The real question is how do you find these "entrepreneurial" people and convince them to join together with you for lower cash and higher risk than they would have if they were working by themselves

The novel part (I think) is banding together and using it as a formal startup incubator.

I agree that the harder part is finding like minded people, which is why I put the idea up here. If it resonates with this crowd I think it is worth exploring further.

As for the risk, I believe grouping together lowers the risk. If each partner brings in a client there are more projects to share, and economies of scale make it easier to share resources and services. Speaking from experience, I can say going at a start up alone is not an easy endeavor.

Re: Ask HN: review my idea for a consultancy/incubator [slides]

#4

Post by brm » Sat, Aug 01, 2009, 8:28 PM UTC

midVentures are a bunch of University of Chicago and Northwestern alums who have joined together to do almost exactly what you describe: http://midventures.com/

Re: Ask HN: review my idea for a consultancy/incubator [slides]

#5

Post by apsurd » Sat, Aug 01, 2009, 9:58 PM UTC

This sounds like you've read the 4 hour work week and then went to an MLM recruitment meeting.=D

This not meant to be derogatory in any way, I do feel that you've put much thought into this. That is just my impression of the concept.

I think in theory, this is great. However it seems to me like rather than one person starting one business, you have "a team" starting multiple businesses on top of managing their partnerships. I'm all for collaboration, but it seems to me like more work is being added, then taken out.

Re: Ask HN: review my idea for a consultancy/incubator [slides]

#6

Post by jey » Sat, Aug 01, 2009, 10:04 PM UTC

I'm currently working independently as a consultant, but I think it could be neat to band together with other freelancers. Getting projects and establishing a "brand" would be easier with more people and more project volume, and we could match up projects to team-members according to their availability and skillset.

I also don't think it needs to be tied to bootstrapping a startup.

Re: Ask HN: review my idea for a consultancy/incubator [slides]

#7

Post by sachinag » Sat, Aug 01, 2009, 10:15 PM UTC

chrisduesing wrote: post #3

aditya wrote: post #2

This would work if you can find the people to make it work, consulting isn't really a "new" route to starting a startup and neither is using consulting income to support it instead of outside money. The real question is how do you find these "entrepreneurial" people and convince them to join together with you for lower cash and higher risk than they would have if they were working by themselves

The novel part (I think) is banding together and using it as a formal startup incubator. I agree that the harder part is finding like minded people, which is why I put the idea up here. If it resonates with this crowd I think it is worth exploring further. As for the risk, I believe grouping together lowers the risk. If each partner brings in a client there are more projects to share, and economies of scale make it e…

But not only do you have to like the other people, you have to like their side projects, since everyone shares until ramen profitability. But most "side project" ideas are terrible. It seems to me that you'd end up with a bunch of megalomaniacs who are mediocre people.

I'm not trying to be a wet blanket, but this strikes me as an incubator (ugh) where the inmates run the asylum. To me, the safest thing is still saving up some money, having a really good idea, and finding some technical friends to go "all in" with you for a year.

Re: Ask HN: review my idea for a consultancy/incubator [slides]

#8

Post by chrisduesing » Sat, Aug 01, 2009, 10:25 PM UTC

sachinag wrote: post #7

chrisduesing wrote: post #3

Earlier quoted context omitted.

The novel part (I think) is banding together and using it as a formal startup incubator. I agree that the harder part is finding like minded people, which is why I put the idea up here. If it resonates with this crowd I think it is worth exploring further. As for the risk, I believe grouping together lowers the risk. If each partner brings in a client there are more projects to share, and economies of scale make it e…

But not only do you have to like the other people, you have to like their side projects, since everyone shares until ramen profitability. But most "side project" ideas are terrible. It seems to me that you'd end up with a bunch of megalomaniacs who are mediocre people. I'm not trying to be a wet blanket, but this strikes me as an incubator (ugh) where the inmates run the asylum. To me, the safest thing is still savin…

The idea is that everyone is working on their own side project half of the time. If other members of the team collaborate it is in exchange for equity. No one is being asked to work on a startup they are not interested in.

Hopefully a group of entrepreneurs that are working together to create startups are also helping vet each others ideas. Going back to other people's comments, the team dynamics would be pretty important. If you think of your partners as inmates in an asylum the whole thing is probably doomed to failure no matter who is providing direction.

I actually have started a company with savings, which was enough money to support one person (me) for a year. I doubt I could have found other people who happened to be temporarily financially independent at the exact same time and interested in my idea. This way seems more practical to me.

Re: Ask HN: review my idea for a consultancy/incubator [slides]

#9

Post by chrisduesing » Sat, Aug 01, 2009, 10:31 PM UTC

apsurd wrote: post #5

This sounds like you've read the 4 hour work week and then went to an MLM recruitment meeting.=D This not meant to be derogatory in any way, I do feel that you've put much thought into this. That is just my impression of the concept. I think in theory, this is great. However it seems to me like rather than one person starting one business, you have "a team" starting multiple businesses on top of managing their partne…

I don't really follow your first two sentences. I am interested in starting a company that I remain in control of, or at least share ownership with the other people doing the work, rather than having random people with money telling me what to do. I am not familiar with MLM, but the 4 hour workweek struck me as finding a way to do as little as possible so you could become a globetrotting rich kid.

As to your final point, it is a valid one. Splitting ones attention between a customer focused consultancy and a startup could well be too much. Ideally each person involved is simply bringing their current employer in to the fold, rather than going out and finding new customers they have no relationship with. I felt this was something I could have done with most of my previous corporate jobs, but it probably isn't universally applicable.

Re: Ask HN: review my idea for a consultancy/incubator [slides]

#10

Post by chrisduesing » Sat, Aug 01, 2009, 10:34 PM UTC

brm wrote: post #4

midVentures are a bunch of University of Chicago and Northwestern alums who have joined together to do almost exactly what you describe: http://midventures.com/

Interesting, I was not familiar with them. I read the web site and it doesn't really highlight if/how they bring in other entrepreneurs. I will have to get in touch with them, or perhaps check out their next event. Thanks for the link!