

Ask HN:  When to stop helping start ups? - wheniswhen

I started a company a couple years ago and we(and all in the company) love working with startups.  We've done everything from early stage to later development.  However over the past two (of three) years, we've been killed twice on large contracts with start ups.  The amount we ended up not getting paid for each of us for the year.<p>I admit we aren't the regular startup, we're a consulting group.  However, despite all of our mentor recommendations, we've never been big into you missed payment date X, we're halting all development.  Instead we have reworked many contracts to make very favorable payment terms for the startup, and we've given several extensions in good faith.<p>At this point we are pretty sure just got burned buy another person, and are rethinking our practices.  We have always wanted to help the start up, and have gone above and beyond( Not many teams i know will spend their own money to fly places to help the startup).<p>However, now we are left in an awkward position, what do we do?  we want to keep working for start ups, but we too need to pay the bills; so what do we do?<p>We want to see these companies flourish.  We believe in start up culture, and know our risks.<p>Is it wrong to think we could live on working with start ups?  We want to continue, but how?  We've felt if we just give a few another month or two they could make it, but have also been killed on this.<p>What do you think?<p>We just want it to come back to what many of our contracts have, a handshake means it all.
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patio11
I love startups. I just don't extend credit to them. If their ability to
afford my services is doubtful, I suggest that they read the blog instead.

You know what they call a startup you don't own? A business. Businesses pay
their invoices in a timely fashion or they get a polite reminder then cut off
at the knees.

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PakG1
I think it depends on their financial stability. I don't think a consulting
company should ever do work for a startup based on equity, the risk is too
great. But if they're not financially stable, then equity is all they have to
give. You should do due diligence on the startup before you do work for them.
If they have financial clout, but no technical clout, then it's a match made
in heaven for you. If not, seems to me it'd be like hell.

