Have you ever talked to an entrepreneur that said he or she was working on some startup projects? I have, way too many times. Startup projects and startup companies are two different things. Yes, one can lead to the other but the vast majority of the time it leads nowhere.
Here are a few issues with doing a startup project instead of a startup company:
- Projects are typically part-time, and while some people on the team can be part-time, to move fast enough and make progress the team needs to have full-time people
- Project implies less commitment when you’re better off doing a startup company and pivoting if the original idea doesn’t work out
- A project can be a way to see if you and some potential co-founders work well together, but the intensive full-time experience is a much better test (have buy/sell agreements, vesting schedules, and more)
It’s extremely tough to do more than one thing at a time, let alone do a bunch of things part-time unless you have an amazing team staffed for each one. My recommendation is to focus on a startup company instead of multiple projects, and start your next one once you have the resources to hire a great team.
What else? What other thoughts do you have on startup projects vs startup companies?