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Small is beautiful for Web 2.0 start-ups

Jason Fried, president of start-up 37Signals, is a bona fide software entrepreneur. But he wants nothing to do with the traditional model of starting a software company.

Rather than try to crack into the business market with a complicated, pricey product, Fried and his colleagues chose to stake out a fairly narrow sliver of the software world: hosted personal organizers and project management applications.

To Fried, the old way of doing things–where a start-up’s success hinges on a few well-heeled customers willing to shell out big dollars–is history.

By Martin LaMonica
Staff Writer, CNET News.com

Full Story: http://news.com.com/Small+is+beautiful+for+Web+2.0+start-ups/2100-1012_3-6035062.html?type=pt&part=inv&tag=feed&subj=news

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