

The $12 Startup - bootload
http://www.seanpercival.com/blog/2009/07/29/the-12-startup/

======
bjplink
Here's a question this post prompts for me: What is a startup and what is just
a website that sells license plates?

People use the term startup, around here especially, a whole bunch but it
feels to me like there should be some kind of clear distinction between a
company founded as a startup and a single website.

I have a handful of websites that make some money but I would never call any
of them a startup on an individual basis. I might call the all encompassing
enterprise of building and maintaining those sites a startup but I think
calling each individual site that is a bit of a stretch.

~~~
10ren
_small business_ : a small business that intends to stay small e.g. a
hamburger shop

 _startup_ : a small business that intends to get big. example: a _chain_ of
hamburger shops (of course a chain is only one way to "get big").

Note that because they are distinguished by _intention_ , you could have two
factually identical hamburger shops, with one being a small business, and the
other being a startup run by a deluded nutter, who crazily envisioned a chain
of hamburger shops, when every sensible right-thinking person knew that was
silly. But I would call it a startup, because of the intention.

pg thinks that it's rare for a startup to succeed (read: "get big") without
funding (I'm not so sure, but I can't think of any counter-examples: google,
yahoo etc all had funding).

37 signals advocates organic growth, and this works really well for a small
business, such as "just a website that sells license plates". 37 signals
themselves seem to have grown significantly, but I'm not sure they would be
classed a "big company", but seem on the small end of "medium/small business"
- therefore they are not (yet) an example of a startup getting big without
funding (I'm not sure of their intention - it could be that they don't want
this; i.e. that they aren't a "startup" at all). Joel's Fog Creek software is
also small at the moment - I don't know whether he intends to become big, and
so whether his company is a startup or a small business.

~~~
ovi256
I do not agree at all with your definition of startup. I would just put it
under small bussiness too. Yes, they have the intention of getting big, but
everybody has that hope.

pg puts it well in one of his essayes: a startup is a company that solves a
hard technical problem. The techical part is essential, not an afterthought. A
fast-food chain would use tech, but it would not advance the art.

~~~
10ren
Not everybody has the hope to get big, e.g. my favourite cafe doesn't.

I would say that someone who wishes to get big, but doesn't take appropriate
action, will still have a startup, albeit likely unsuccessful. You might
define someone's company as not being a startup because you don't think they
will be successful - but how do you know they won't be? Hence my ironic use of
"delusional" etc. Many startups were doubted before they became successful.

<http://www.paulgraham.com/wealth.html> references the example to which I
alluded: McDonald's.

------
icey
That only works if your time is worth $0.

~~~
SwellJoe
I'm not sure I understand how that doesn't apply to every startup. If you
insist on valuing your time fairly from day one, you can never start anything
new. You must work for someone else, who can pay you a fair wage. The trade is
in the payoff one, two, or seven years down the road.

The payoff for this guy was $100,000, and he seems content with that payoff.
For me, just the fact that I don't have to answer to a boss, be in the office
at a certain time each day, or have to deal with constant meetings or
corporate culture, is enough incentive for me to voluntarily value my time
lower than I would working for someone else. Add in the potential for a very
large payoff in the future (either an acquisition, an IPO, or just building a
multi-million dollar business) and the trade is more than fair. I'd actually
do it all for much less than I'm currently paid and less than I expect to be
paid in the long run.

~~~
icey
I don't insist on valuing time fairly from day one. I'm saying that it's
intellectually dishonest to say that he turned a $12 domain registration into
a $100,000 payday as though there was nothing in between.

The fact of the matter is that making $100,000 from starting up is
significantly harder and costlier than it would be to make $100,000 holding
down a day job. I know the audience here knows that especially well, and I
know that you specifically know that very well. I just feel like it devalues
what startups do when people just hand-wave away the fact that being
successful necessitates blood, sweat and tears.

~~~
patio11
_being successful necessitates blood, sweat and tears_

This is one of those Real Scotsman pieces of lore which I think we repeat to
flatter ourselves. I bleed a lot less for my startup than my day job, let me
tell you.

~~~
apsurd
There is work involved in everything.

~~~
pbhj
Even inheritance?

~~~
apsurd
It is a state of mind. I just don't like the idea that people write off things
to luck, talent, miracles, and gifts from God.

Please note I don't discount these things, and those metaphysical wonders
surely do exist (imo), but rather, it is a better builder of character to
believe that everything is the result of personal decision and action.

As an aside, this is why I always stay away from the Tim Ferris bickering.
Everyone _wants_ to believe he's a fraud. Whether he is or not is not
important to me or you. Tim Ferris does things. That's it.

Probably a bit too romantic, but I like movie script endings.

------
staunch

       Domain Name: CUSTOMEUROPEANPLATES.COM
       Created on: 16-APR-05
    

Heck of a long time.

~~~
Elepsis
I don't think this is a legitimate indicator. I, at least, often register
domains when I have a reasonable idea, which can often be a year or more
before I do anything with them -- if I ever get around to it at all.

