The question:
Is it a good thing for a start-up with one diagnostic product to focus only on market share and selling the company or should it try to develop additional products? In other words, is, "One, done, then do it again" a good strategy?
A good friend has a great test and I think he should try of the one and not distract or waste time on anything else. I used to be an opponent of the "one-trick pony" but that has changed as I see investors wanting a quick exit.
It is not a question of retiring as much as it is a strategy issue. I think that if you do not have the resources, or product concepts, required to build a big company, then why fight to stay alive? Build the best value and do it again. I may be wrong, so I am asking. I do know of at least one example, where the founder has done this 4 or 5 times. In each case, he sells for $10 - 40 million after starting with $1 to 2 million.
I got a range of responses, and even though I have not really changed my mind, I did appreciate the comments and I made 8 to 10 new connections. One suggestion I received was to open the question to a broader audience. I think putting it here on this blog is a good start.I have heard from a few VCs about their preference and it runs from highly favorable to absolute avoidance of such models. This just proves that you can find an investor for any model, it may just take more time for some cases.
So, what would you do? Build and sell or create a company designed for the long haul?
