Published on May 28th, 2013 | by Jose Vasquez1
The One Big Choice for Startup Tech Companies
The most successful startup tech companies eventually have to face one big decision: to become acquired by a bigger company or continue growing independently.
The failure rate for startup tech companies is high, mostly because their entrepreneurs failed to have a plan or failed to execute that plan. But the negative volatility of hot startup technology is counterbalanced by its positive volatility: with great risk comes a potentially great reward.
It takes a lot of work and a lot of adapting in order to become and remain successful as a startup tech company, but once you reach a certain level of clout, you’re going to face one major decision as an entrepreneur. Most startup technology companies exit the market either by becoming giants in the industry, like Google or Apple, or by being acquired by the giants of the industry, like Google or Apple.
So do you want to compete with them, or become a part of them? It’s an exciting decision either way—just the thought of such a possibility is enough to encourage new entrepreneurs to start new tech enterprises.
But there’s something you might be forgetting; this decision is years, if not decades, away. While it is important to consider what options exist in your future, it is more important to focus on the present.
Why It Doesn’t Really Matter
Of course it’s appealing to think of the 8-figure acquisition deals many startup tech companies have enjoyed, and the success stories of countless tech companies that have come before you. And while your endgame is important, it cannot define who you are as a company.
Your business should be focused on a mission, not on potentially getting rich. With an end goal of providing a certain level of service, or reaching a certain number of customers, it won’t matter whether you get picked up or become a self-sustaining major corporation.
Build your company’s goals around reaching a certain level of greatness in accordance with your mission, not around making a fortune.
With this model, you’ll eventually find success. And if you give it enough patience and dedication, you can make the big decision when the time comes.