what experience people have had signing up to Microsoft BizSpark etc.
Also what happens with Microsoft BizSpark if I do not ship the product in the end – e.g. someone makes me a job offer I cannot say no to?
Is it OK to be doing contracting while developing the product to help fund the development?
Update
Also consider WebsiteSpark that has just come out (24th Sep 2009)
I believe as long as your primary business/product is a SaaS type application you are OK. But I am not a lawyer so take what I say with a grain of salt.
In the BizSpark contract the liability is expressly limited to $100 on each side. So if you fall completely out of their coverage and they realize it, you have to pay the $100 and they cancel your subscriptions, but that's it.
And really as long as you keep the startup as a technical entity, I don't know that they care whether or not it has (for instance) at least 30 hours a week total work being done. (Nor how they could find out.)
I'm a BizSpark member in the US, and I agree with the comments here. Once signed up, there is a $100 liability, but that's it. I've been in the program for approximately 6 months so far, and I'm trying to do what I am obligated to (ship a product, provide updates, etc). But I don't get any pressure to ship a product or provide frequent updates.
I do get contacted from my sponsor every once in a while, offering help.
My signup experience was surprisingly easy. I contacted a local user group and explained what I was doing and I was quickly approved. I am working on a SaaS application, but still don't have a release date.
Just be honest. During signup, I explained that I was using Windows 2003 in Amazon's S3 cloud, I had no interest (at this time) in Azure. This wasn't an issue at all. Don't sign up unless you really are working on a SaaS application and if you have questions like "what happens if...", ask the sponsor who will sign you up.
I email one of the Microsoft's BizSpark's team about this, and was told
Normally we will ask a services-and-product company to limit the BizSpark usage to the "product" part of the business but that makes little sense for a one-man company. You will receive the invitation very shortly.
Other people may get different answers when they ask, as this is a gray area.