Building a billion dollar business

I have thought about this topic lately quite a bit and come to the conclusion that IT is not innovative IP that fetches the best valuation in today’s market. True value is measured by client base and how active your client base is.

Most solutions today can quite easily be pieced together using open source components. Getting a patent for your IP is getting harder and harder. If the underlying technology is free and open to all, then the true innovation is in the underlying business model. The best models have a compelling story to tell and the cost of adaptation is minimal to the end client at first. The power is in volume! Access to users! Monthly invoicing models offer steady predictable revenue flows that investors love.

Whether your goal is to build and manage a company that stands on a strong base or to build a strong base for sale, the same principles apply. 


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