

How to build a software startup to be target for acquisition? - mohameddev

I know it seems to be very broad question,  but is there a steps or techniques to seek what kind of solutions that might big companies interested in acquiring [like Google for example] and start building the solution based on that?
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brudgers
I can see several strategies:

\+ Working on a problem that the big company doesn't see that expands the
market. Then the acquisition becomes a matter of buying into the market.

\+ Working on a corner case in the big company's market and executing better.
In this case the acquisition is amounts to buying a feature.

\+ Solving a problem for users in a way that obsoletes the big company's
fundamental business model. The acquisition amounts to stifling innovation.

\+ Just being so awesome that acquiring your company is the only way to hire
your team.

Despite arguments to the contrary, thinking about possible exits is a virtue
not an ethical failing. Psychic income is great, but it doesn't always pay the
bills. On the other hand, the likelihood of a random outsider having a highly
useful model of Google's workings to the degree that being bought by Google is
a viable exit strategy on day zero are pretty low [though an insider and
industry veteran might be another matter].

Good luck.

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mohameddev
Thanks @brudgers you nail it down a level, I still need to narrow down my
question but so far so good.

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xackpot
For me, the acquisition is a failure on all levels. Failure to execute,
failure in reaching beyond one's capacity to take the startup higher, failure
in self-belief. Even though one may have earned money after an acquisition,
the real aim of a startup is to change the world and not to get acquired and
die. But failure doesn't come cheap. For you to fail, you will need to put
your heart and soul into the startup to succeed. And as spotman says "build
something you believe in, that solves a real problem, and gain real traction",
he didn't add that once you start getting offers for acquisition, stop
believing in your idea and get lured by the offer and the riches. I personally
believe in one learning from "The hard thing about hard things" book by Ben
Horowitz, is that you should sell your startup when you have reached your max
capability to take the startup to the next level.

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partisan
> the real aim of a startup is to change the world

Honestly, not everyone is trying to change the world. The real world is full
of businesses that provide a good living for their owners and their employees.

You can read books and articles about startups all you want, but those books
aren't going to make choices for you. You have decide what is right for you
and your business.

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xackpot
The real aim of a startup is to change the world either in the smallest,
unnoticeable way or at perceptibly larger way. When you do a startup, you want
to address a problem and change the world by solving that problem. If you
don't want to change the world, what is your startup trying to achieve? Btw,
nobody reads books because they make choices for you, or teach you how to make
choices. In fact, books don't teach anything if you are not ready to learn.

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spotman
build something you believe in, that solves a real problem, and gain real
traction.

if people see the value in what your doing and plan on using it, chances are a
big company would too.

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mohameddev
Yup @spotman this is the general way,but to try to think for an successful
exit from beginning, is what I'm talking about. In my opinion,I'm not seeking
multimillion dollars acquisition, I'm seeking a more less and more fast as
steps on up stairs,to get cash to but into more stronger startup and bootstrap
on that cash.

