Earlier quoted context omitted.
Interesting, can you expand on services business being lifestyle vs product being venture? I had never heard of that distinction before and usually just thought of lifestyle businesses as slower growing vs faster.
Sure, here's an example - a small startup which occupies an attractive niche, definite market need, product-market fit, and decent traction. The founder developed a software platform in response to market need, but the market also told her that there were opportunities to sell extensive services. Now that the software platform is done and there is a small services team in place, the founder can choose to sell either:…
For example, Uber and Lyft, both sell a service that requires a proportional amount of new contractors and employees, to scale.
Another would be Palantir, which sells services based off of a core software product.
How do you classify companies that are ambitious, but perform work that doesn't scale?