VentureVoice ran an interesting (MP3) interview with VC Brad Feld, who built a consulting company and discovered that consulting doesn't scale as well as products. “We determined that the profit level we were generating at 20 people, well, if we grew to 40 people we’d obviously double the revenue, our profit would probably be exactly the same.” He also talks about why it's really hard to make the leap from consulting to products. Great interview.
While I'm on the subject, VentureVoice also ran an excellent piece about launching companies at the DEMO Conference.
You’re reading Joel on Software, stuffed with years and years of completely raving mad articles about software development, managing software teams, designing user interfaces, running successful software companies, and rubber duckies.
I’m Joel Spolsky, co-founder of Fog Creek Software, a New York company that proves that you can treat programmers well and still be highly profitable. Programmers get private offices, free lunch, and work 40 hours a week. Customers only pay for software if they’re delighted. We make Trello, insanely simple project management, FogBugz, an enlightened bug tracker designed to help great teams develop brilliant software, and Kiln, which simplifies source control. I’m also the co-founder and CEO of Stack Exchange. More about me.