TechCrunch have been running a bit of theme on ageism in the world of start-ups over the past month.
There was the original “poking the flames” back in April by Michael Arrington with Internet entrepreneurs are like professional athletes they peak around 25. While today we have the counter argument by Adeo Ressi: Is there a peak age for entrepreneurship?.
My observation on the topic is simply this.
The more experienced leave the business of start-ups to the young and naive and concentrate their energies on Mergers and Acquisitions. Why? Because experience or trusted professional advice will tell you that borrowing very expensive money from very experienced professional investors just so you can buy you and your mates a job for 6 to 12 months is a very risky way to learn all about the cut throat world of business.
Needless to say in business it’s far less stressful and more rewarding to be thinking like a hedge fund manager than to be a kid trying to borrow money to build a killer app or web service.
Business is all about understanding that the profit is in the sale. So unless you know who is going to buy the business from you downstream and for how much you are probably not ready to be in business at all.
Imagine that Clint Eastwood (AKA Dirty Harry) is holding that gun to your head and asking the question ”‘Do I feel lucky?’ Well, do ya, punk?” then go away and spend some time learning from those who do know how to make money out of being in business before you lose your shirt.
Posted on May 29, 2011
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