

Don't Say Startup - 10char
http://clayallsopp.com/posts/dont-say-startup/

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potatolicious
Oh get the hell off that horse.

> _"So I've made a new rule: unless you've raised money, are bringing in
> substantial revenue, or have a sizable active user base, don't call whatever
> you're building a startup."_

So... bootstrapped companies can't be startups? What about a funded, B2B
service that is bringing in millions in revenue, but only has two clients
signed up?

> _"Every time you introduce your product to someone as a startup, you set an
> expectation for where the conversation is going next: your funding, revenue,
> user base, that sort of talk."_

No it doesn't. It only does if you interact solely with people in a _very
specific_ subset of entrepreneurs. You know the type - the people who are
_always_ at "startup parties" and hanging out in incubators and coworking
spaces all day. There is a large, large world out there where the word
"startup" doesn't automatically lead a conversation someplace.

And even _within_ that scene, I have rarely run into situations where
"startup" automatically steers the conversation towards funding, userbase, and
revenue. Methinks the author hangs out with the wrong people.

> _"someone tells you they're doing a startup, you ask for details, and it
> turns out to be pretty nascent. Kind of a let down, right?"_

No, because I haven't pigeonholed the word "startup" into something
incredibly, and to be blunt, absurdly specific.

> _"The more we throw around the word "startup", the less of an impact it has
> when we actually want it to matter."_

Because _it doesn't matter_. The word "startup" is a general descriptor for
the nature and state of your business. If you are throwing that word around
for "impact", you are no better than these _other_ people you complain about.

~~~
10char
> So... bootstrapped companies can't be startups? What about a funded, B2B
> service that is bringing in millions in revenue, but only has two clients
> signed up?

I think the missed the "or" in "raised money, are bringing in substantial
revenue, /or/ have a sizable active user base". Your B2B example is perfectly
fine. And I think some of your other points are based on this
misunderstanding, too.

~~~
potatolicious
So, I quit my job and decide to bootstrap a company. I've launched my product
and it's in its very early stages of gaining traction.

I'm not allowed to say "I'm working on a startup?" - even though my
cofounder(s) and I have poured tens of thousands of our own money into it and
have been full-timing it for months?

Forgive me for being blunt: but this reads like whining. You want the _your_
use of the word "startup" to automatically grant you some credibility, and are
complaining about people who are trying to do the same.

You will find this in any community. You're not a real painter unless you
[blank], you're not a real photographer unless you [blank], you're not a real
writer unless you [blank], you're not a real programmer unless you [blank].
And now, you're not a real startup unless you [blank].

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seanmccann
When I talk with somebody who is working on a real business, they usually are
most excited to talk about "what they do" rather than spitting out labels. I
see so many people (especially on HN) say "startup(s)", when they are just
referring to a 1/4 done side project with no users.

I feel the word "startup" has been dragged through the mud by wantrepreneurs.
I have mostly removed it from my vocabulary.

I'm building a company.

~~~
jamesjguthrie
^ Completely agreed.

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jessep
I tell everyone that I'm working on "a web page". Seriously. It's funny, and
it starts the conversation off with a good, playful tone that makes it clear
that I don't take myself too seriously.

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tikhonj
I don't think this is a particularly good standard. If anything, I find
startups at the very early stages (well before serious funding) the _most_
interesting ones to consider. What am I to call a company like this? The whole
point is that it's a _start_ \--that's why it's a _start_ up!

I think the term should move in the opposite direction: consider even the most
nascent of companies "startups", but stop calling large, well-funded and well-
staffed companies like Twitter startups. There is far more difference between
Twitter and a funded 10-person company than there is between that same
10-person company and a brand new two-person venture.

Maybe it's a function of whom you talk to, but I've found the conversation
about a startup does _not_ proceed to "your funding, revenue, user base, that
sort of talk". It proceeds to talking about your product, your idea and your
technology. Sure, after that, people might ask about users and revenue, but
they understand if that's in the future. On the other hand, if your idea or
technology is sufficiently interesting, the topic often just stays on that.

Now, if you're just writing an iPhone app with no real plans to grow it into a
company, or you just started a project for fun, maybe you shouldn't call it a
startup. But if you plan to grow and get significant funding or revenue, you
_are_ a startup--just maybe a temporarily inconvenienced one :).

~~~
saraid216
I think the key question is really "are you basically ready to turn this into
a registered company?" If you aren't, then it's not a startup.

More importantly, you don't "work on a startup". You work on a project, a
product, a service, an idea. If you're working on a startup, you're hopefully
a consultant of some kind: legal, HR, whatnot.

It's okay to say "I work at a startup." But that's really less than useful
information for both you and the person you're talking to. It's about the same
value as "I'm an Asian-American." Congrats, you qualify for a scholarship.
Cookie? At least say "I'm an engineering major." or "I'm doing mobile."

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kurtvarner
Calling your little side project a startup makes you look naive. That's why I
prefer using "project" in most of these cases. When the OP says _I'm working
on my own thing right now_ , I'd replace _thing_ with _project_.

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taybin
Sounds like someone doesn't want others in his cool club.

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jamesjguthrie
"unless you've raised money, are bringing in substantial revenue, or have a
sizable active user base"

Those are not startups, those are businesses. Startups are pre-revenue and
pre-launch - i.e. just starting!

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bduerst
Pure semantics and hair splitting.

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therandomguy
Now that this rule has been made what happens next?

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shreeshga
He already said it. So i didn't click the link.

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rprasad
A startup, legally, is a business that is starting up. There is no requirement
to actually incorporate or form a company as long as the intent to start a
business is present. The startup period is generally defined as a business's
first year (possibly first two years) during which it is still engaged in the
processing of beginning its business operations. Once it has begun its normal
business operations, it is no longer a startup.

A business with substantial revenue, traction, activities, __or__ funding, is
_legally by definition not a startup_. It is simply a company. Twitter and
Facebook are not startups, and they haven't been for years. Stripe is not a
startup. Kickstarter is not a startup. BingoCardCreator is not a startup.

 _But note_ that it is possible to have startups within an existing company.
Tax-wise, at least, a business is distinct from a company. A business is a
money-generating venture (or a venture intended to generate money); a company
is a legal vehicle for housing one or more businesses. So long as the business
activity is new, it may be a startup.

