A start-up needs to have an exit to pay back investors. A company that isn’t hoping to exit is just a lifestyle business. Both are valid options, but very different tactically.

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ChrisMarshallNY 4 days ago | parent | next [-]

Maybe, but all businesses begin as "startups." I guess getting a lot of outside financing is a big deal. Most companies that I know, don't get investors, until they are a going concern. They usually have a bank loan, to start (which can be burdensome).

I used to work for a 100-year-old Japanese corporation. They absolutely refused to go into debt, or seek investors. It could be challenging, getting them to loosen their pursestrings.

But they survived depressions, recessions, and even being bombed in WWII. They had a massive implosion, a few years back, that would have killed most companies (it resulted in me being laid off), but it looks like they are getting their feet under them again.

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cjrp 4 days ago | parent [-]

I guess the problem is what if your competitor does take on that debt, and uses it effectively to put you out of business. Whether the competitor survives much beyond that is immaterial if your company has already closed.

	▲	ChrisMarshallNY 4 days ago \| parent [-]
		What sucks, is when one company drives another one out of business, then fails, themselves, leaving end-users in the lurch.

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dig1 4 days ago | parent | prev [-]

> A start-up needs to have an exit to pay back investors

It depends on the kind of investors you want to attract for your startup. Some investors are interested in building a slow-growth, long-term, stable company, while others prefer a higher-risk approach and will expect fast results. IMHO choosing the right kind of capital is just as important as focusing on the product.