The Dangers of Spec Business Models

In this episode (originally aired February 1, 2022), 37signals’ co-founders Jason Fried and David Heinemeier Hansson sit down with Shaun Hildner to discuss the consequences of building a business solely with the intention to sell. They share their perspective on building a business for the long haul versus for an exit.

Key Takeaways:

• 00:46 – Building a company to sell can encourage mediocre output
• 07:14 – Taking shortcuts is a reflection of one's character
• 09:41 – Why it's better to have a commitment strategy than an exit strategy
• 11:21 – Not all businesses should become unicorns
• 14:58 – What the founders would do if they had to begin again

Links and Resources:

• Books by 37signals
• Sign up for a 30-day free trial at Basecamp.com
• The REWORK podcast
• The Rework Podcast on YouTube
• The 37signals Dev Blog
• 37signals on YouTube
• @37signals on X