I believe that having a focus is crucial. I've been part of a service company where we did consulting but also tried to create an in-house app. For sure, there are scenarios where this is feasible, but I guess it depends on the finances, staff, etc.
my thoughts on this are that if a service-based company wants to launch its own product it should (sooner or later) behave like a founder and investor and set up a new legal entity, employ one, two people and finance it.
That way it has a clear picture of how that company is doing, it can raise capital separately, the roles & motivations of people are clear, etc.
Indeed, it's hard to be great at both. It's totally different mindset and I don't personally know a company that is doing both well. It can happen that a company transition from one to another, though.
The best thing is to have a business model that you follow and you know what you wish to focus on and what not. You can still pivot later, but doing too many things at the same time and hoping for success is not the way to go in my opinion.
I believe that having a focus is crucial. I've been part of a service company where we did consulting but also tried to create an in-house app. For sure, there are scenarios where this is feasible, but I guess it depends on the finances, staff, etc.
What are your thoughts on that?
Petar thanks for the question,
my thoughts on this are that if a service-based company wants to launch its own product it should (sooner or later) behave like a founder and investor and set up a new legal entity, employ one, two people and finance it.
That way it has a clear picture of how that company is doing, it can raise capital separately, the roles & motivations of people are clear, etc.
Well, at least that's how I'd do it :)
Indeed, it's hard to be great at both. It's totally different mindset and I don't personally know a company that is doing both well. It can happen that a company transition from one to another, though.
The best thing is to have a business model that you follow and you know what you wish to focus on and what not. You can still pivot later, but doing too many things at the same time and hoping for success is not the way to go in my opinion.