5. A startup shop can give you substantial experience

The compressed time frame for startups to develop a business strategy, secure backing, build a Web presence, secure another round of funding and go on and on means you've got a lot of entrepreneurs on the loose, with scant idea about how to build a business. Investors, meanwhile, press for the first mover advantage.

When startup shops like Organic, a San Francisco-based Internet-services firm, accept a client for its "venture catalyst" approach, its goal is to lead a company from idea to initial public stock offering in 18 months. It does this in four phases: conception, building, expanding, and establishing. The concept phase, for instance, entails proving the concept, developing a business strategy, determining what market the business addresses, and examining the target audience. A concept demo is developed.

 

Organic handles the logistics of inventory and order fulfillment, the public-relations objectives, and measurements of success. This full-service approach means you're likely to have a committed partner, especially if the firm has equity in your business.