

Startup = Idea - jusben1369
http://jmlite.tumblr.com/post/33443330774/startup-idea

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coderdude
A startup is whatever you think it is. There is no solid definition. I imagine
most people will agree that a startup is always a newly formed business, which
is probably geared to "grow" at a fast pace, and is probably not something
traditional or brick and mortar.

The rest is just trying to figure out who you don't want calling themselves a
startup.

(And by writing this I have joined the others in attempting to define this
word.)

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pan69
If I'm starting a flower business, is that a startup? No. I'm just starting a
business. Selling flowers is a proven business model.

The difference between starting a business or a startup is that a startup is
trying to solve a unique problem. It often tries to do this through the use of
technology.

If I think I might have found the cure for cancer which could lead to a
billion dollar company but I need to do 5 years of research, that's a startup!
No bank is going to give me a loan for this so I need investors who believe in
my vision.

~~~
rprasad
Uh, no. Legally, a startup is simply any new business, whatever goals the
business is trying to accomplish. The startup period is the period during
which the business is setting itself up prior to begin its normal intended
business operations.

The term "startup" derives from the tendency of technology based companies to
remain in this "starting up" period longer than companies in most other
domains. It has somehow been romanticized as a term exclusively belonging to
tech.

After all, if "startup" only meant a business trying to solve a unique
problem, then Twitter, Facebook, and even Google never were startups, because
communication, social networking, and search were not unique problems when
those companies were formed. For that matter, AirBnb and Uber would not be
startups, as FRBO's and charter car services are solved problems.

~~~
rfrey
"Legally, a startup is simply..."

I normally dislike "citation needed" responses, but what law are you
referencing, exactly?

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rprasad
For the tax code laws, see §195, 248, and 709. For the state and federal laws,
I suggest using Lexis to look them up as i don't have the time to provide
cites.

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stcredzero
_> The next test: If a startup = growth then by definition a new business that
is not a start up cannot = growth._

I think Paul Graham meant it to be a necessary condition to be a startup, but
not an exclusive one. Pretending otherwise is just a camouflaged straw man.

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chaseadam17
Start (New idea or approach) + Up (Scalable) = Startup (A scalable new idea or
approach)

A new idea or approach that's not scalable would not be a startup (e.g. my
uncle's underwater bar for scuba divers in Barbados). And a scalable idea or
approach that's not new would not be a startup (e.g. another Coke/Pepsi
clone).

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therandomguy
After reading that I still don't know the concrete definition of Startup. Is
it an idea? I have many ideas that I have jotted down over the years. Are all
those Startups? Or do I need to execute? The post suggests that if someone is
building something that already exists then it is not a startup. Why? Is
Hipmunk a startup? There already exists many travel search engines. You might
say they have a unique spin on something that exists. Your hotel idea with a
treadmill in every room had that as well.

~~~
rprasad
There is a legal definition: a newly formed business that has not begun its
intended normal business activities. Legally, and in the tax code, a "startup"
has various advantages that established businesses do not (i.e., for example,
in some states a startup does not pay income taxes for its first year).

If you want to add more to the definition...that is a philosophical battle
that will never be resolved decisely for any specific extended definition.

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zachalexander
Rant/shameless plug:

The author raises a few valid points -- which I would summarize as "any short
definition of a complicated thing will have at least a few minor problems" --
but overall this feels pretty unconvincing to me.

For example, I see nothing wrong with seeing a new company aimed at creating a
global chain of barber shops as a startup -- yet I see plenty wrong with
describing his grow-vegetables-on-the-moon company as a startup (cool space
technology + no obvious business model = scientific foundation perhaps, but
not even a business, let along a startup).

Which makes it frustrating to see this on the front page, because I wrote my
own response to PG's essay several weeks ago, [1] which I think was better
thought out and written, and it got no love on HN (though it did on Twitter).

/rant /plug

[1] <https://news.ycombinator.com/item?id=4577525>

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trendspotter
I completely disagree with the theory "Startup = Idea".

My counter argument is: "Good Ideas Grow On Trees"

Working with a startup myself, I can clearly see why Paul Graham nailed it
down to "growth" and not "idea".

The "idea" part of an startup is the easy one. I scientifically researched the
topic 'innovation capability' and 'innovativeness' of organizations and the
crucial part is not to come up with an idea. As said "good ideas grow on
trees". The hard work is the execution of an startup idea to get "growth".

The main difference between startups is not their idea, but their growth. Many
people can come up with a new startup idea in days, maybe even with a new idea
within minutes. But it can take years to bring an idea to success.

Here are examples of good ideas that are growing on trees:
[http://www.quora.com/What-is-the-best-way-for-a-first-
time-e...](http://www.quora.com/What-is-the-best-way-for-a-first-time-
entrepreneur-to-get-word-out-about-their-startup)

There are endless startup ideas. Even the idea newness, how radical new a
startup idea is, is not the main aspect of an startup. Again the main
difference between startups is if they can execute the idea and get growth.
For example with our startup we were the first to hit a large, untapped or
underserved market. But the lack of execution and growth was what killed it.
There are always other people who sooner or later have a similar idea. The
main difference again is which startup executes the idea the best, the fastest
and gets the most growth.

~~~
chaseadam17
Is Integrity Funding a startup? Founded in 2007, it has seen 12,443% growth
over the past three years and is currently the 4th fastest growing company in
the US.

Website: <http://www.integrityfunding.com/index.html> Reference:
<http://www.inc.com/inc5000/profile/integrity-funding>

There are a lot of companies on that list of the 5,000 fastest growing
companies in the US that I (and perhaps others) wouldn't consider "startups"
at first glance.

Also, in your argument you reference your "startup" but say that the company
failed because of "lack of execution and growth." But wouldn't, by your own
definition, your company not have been a startup because, after all, it was
just another idea that fell off the idea tree and failed to grow?

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leed25d
I do not think that this is correct. Ideas are a dime a dozen. I think that
execution is the most important aspect of a startup. The idea might actually
not matter all that much, indeed the underlying idea might change quite
radically over the lifetime of the startup.

~~~
jusben1369
The problem though is that (good) execution is also critical for all
businesses. We're looking for a unique characteristic to identify a startup
from "normal" businesses.

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trendspotter
The unique characteristic is the growth.

Startups (successful startups) grow much faster than "normal" businesses.

Facebook, Groupon, Instagram, Pinterest, you name it.

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memnips
IMO a startup is a company trying to discover and prove a new business model
or a radically altered existing business model.

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bdunn
Startup = a business = an organization that swaps value for money.

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markyc
like the Post Office?

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orangethirty
The book "The Lean Startup" defines what a startup is. No need for further
explanations. Go and read the book if you have not. Save yourself time and
money with it.

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kristiandupont
PG is _at least_ as much of an authority on the topic of startups as Eric Ries
so I think that's a bit simplistic.

I personally prefer the definition that Steve Blank offers: "a startup is an
organization formed to search for a repeatable and scalable business model".
This to me makes it clear where you should focus. Once you have discovered
this model, your startup turns into a "regular" company and your priorities
turn to operations and scaling.

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DavidAdams
Thanks for mentioning this. When I was reading this essay, my first thought
was, "an essay that's seeking to define what a startup is that doesn't at
least acknowledge Steve Blank's by-now-well-known definition just stumbled off
the starting line."

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jusben1369
It was really focused in on PG's essays vs all essays written around defining
a startup.

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FredBrach
Startups as fast-growing companies take a very particular role in history, in
economy and in a nation. This is a deep concept with a lot of ramifications
and implications. Of course this is intrinsically linked to the concept of
innovation and then new ideas but that sort of ideas and innovations which
cause all the implication of fast-growing companies. This kind of companies
are noteworthy in many scales since millennia.

For example, startups renew dying jobs, notably, at the nation scale.

