Live data from Hacker News

My thoughts on why I will not call my business a startup again

pakorabutty.tumblr.com

21–30 of 51 posts

Re: My thoughts on why I will not call my business a startup again

#21
We may very well see the slow fade of the word 'startup' as we know it.

The historical tendency seems to be towards consolidation. The web has been a beautiful chaos for us, but we are already seeing the changes. To name two, SOPA seeks to more rigidly defend intellectual property rights; Google has started charging for excess use of its maps. In other words...people are looking to make money.

And that is reasonable.

The low hanging fruit of the internet will disappear shortly. Like the land rushes of the railroad era, where pamphlets proclaiming the glories of midwest farming were distributed all around the world, it is important to remember those pamphlets were printed by the railroad companies themselves.

Are you speculating? Claiming 160 acres of land in Nebraska in the hopes the town booms? Or are you selling train tickets leaving New York?

Re: My thoughts on why I will not call my business a startup again

#23
At the end of the day your ultimate goal is to make money, that's all. I like the change you're suggesting. We're really just riding out the cultural wave that started when all the "dot coms" were startups, and so all tech companies under the meme of "two guys one VC" became "startups."

Historically you wouldn't be a startup if you bought three ships and sailed around the map to collect spices from India, but we might consider Christopher to have been a startup which collected VC funds from Spain before three ships came sailing.

We call them startups because our clan (two guys one VC) inherited the name from the businesses before us (Amazon, Apple, Microsoft). If you want to go and change the name you will have resistance, because that's what the name for our culture is. We're filled with names that don't truthfully reflect who we are, for instance, American is often thought of as the nationality of people from the USA, but that's silly because the Americas contain many more nations. Why aren't Mexicans considered Americans, yet Germans are considered Europeans? Everyone understands that Americans are from the USA, and Europeans are from Europe.

Everyone understands that tech companies are from the land of two guys who are trying to start a business with some funding. I like the idea of changing the name to something with great synergy for a new cloud-based webospher3.0 on the extranet, but to be totally honest it's simple re-branding of something most people involved with startups and VC understand. If your company is stuck starting up, I have a hard time believing it's simply because you called yourselves a startup. Many "businesses" are also in the same "startup" phase, and it's not because they call themselves businesses. I like the re-branding only because the name "startup" is a silly name, just like I wish we didn't call people from the USA a word that represents the population of two continents.

Re: My thoughts on why I will not call my business a startup again

#24

Seems they didn't even have a minimum viable product or some basic customer research. So they weren't even a startup. That which we call a rose by any other name would smell just as sweet - Shakespeare Calling it a business wouldn't have helped.

That which we call a rose by any other name would smell just as sweet - Shakespeare

But calling it 'dung' kinda derails the conversation.

Re: My thoughts on why I will not call my business a startup again

#25
post #18
post #13

I think today, startups and businesses are two different things. A business makes money. You see them all around you. Restaurants, companies that sell products (online and offline), web design firms, etc. These businesses impact the rest of society. Real, everyday people buy from these businesses and often rely on them. Your family interacts with them, understands them, knows them. A startup is a game. You play by th…

While I agree with most of what you said, the one outcome you haven't mentioned is the startup becoming a business. Start off spending VC money while putting together your business model and monetising. Exit your startup 'phase' with all of that in place, and making profit.

If VC money is involved and all that happens is a regularly profitable business, then is not really different from total failure.

To not be a failure you business must be a HUGE success, grow and profit like only startups like Google and Facebook have.

Re: My thoughts on why I will not call my business a startup again

#26
post #20
post #13

I think today, startups and businesses are two different things. A business makes money. You see them all around you. Restaurants, companies that sell products (online and offline), web design firms, etc. These businesses impact the rest of society. Real, everyday people buy from these businesses and often rely on them. Your family interacts with them, understands them, knows them. A startup is a game. You play by th…

mh, dont startups most of the time have customers/users of some sort too ? I bet most startups have more people interacting/relying on them (users/customers) than your local restaurant or web design firm.

I think you're missing out on an important point - Users are not the same as Customers.

Customers pay you money, they are what you need to build a business. Having millions of users who don't provide any revenue is only useful if your goal is just to be bought by someone else.

I personally think that it's a sad state of affairs that most startups don't seem to be interested in building businesses, but instead just want to play the acquisition lottery instead.

Re: My thoughts on why I will not call my business a startup again

#27
post #23

At the end of the day your ultimate goal is to make money, that's all. I like the change you're suggesting. We're really just riding out the cultural wave that started when all the "dot coms" were startups, and so all tech companies under the meme of "two guys one VC" became "startups." Historically you wouldn't be a startup if you bought three ships and sailed around the map to collect spices from India, but we migh…

> Why aren't Mexicans considered Americans, yet Germans are considered Europeans?

I think you know this, but that's just a quirk of the language, that there's no euphonious way to say "United Statesan" since "States" isn't really a proper noun as a place name. "American" is a least-bad option.

Also, there could be other "United States" entities in the world. The USA isn't the only example of that construct. The demonym for a resident of the Federated States of Micronesia is "Micronesian".

Besides, "American" would be a bit too broad in applying to two whole continents. Nobody lumps Germans and Japanese together under "Eurasians". A Mexican is a "North American", which along with "South American" is a perfectly serviceable term and carries just about the same amount of specificity and meaning as "European".

Yes, naming is important, but it's also important to go along with established convention for meaningful communication. "Startup" conveys the potential of shoot-to-the-moon growth and profit that isn't possible in an established large company, and your listeners will lose some of that connotation if you switch to simply "business".

Re: My thoughts on why I will not call my business a startup again

#28
post #12

Here's a nickel kid, go buy yourself a book on entrepreneurship.

FWIW, I downvoted your comment simply because I don't think that kind of snarkiness is appropriate here on HN.

That said, I agree that there is some basic, foundational knowledge that it sounds like the author of this piece was missing. That's not uncommon among technologists though, in my experience. Myself, I was in this field a long time before I got around to reading "The Art of the Start" and "The Four Steps to the Epiphany" and that's when I really started to understand more about this "startup thing."

So yeah, I agree there is some stuff the OP might want to read / research / study... but I would suggest ditching the snarkiness in communicating that point.

Re: My thoughts on why I will not call my business a startup again

#29
post #13

I think today, startups and businesses are two different things. A business makes money. You see them all around you. Restaurants, companies that sell products (online and offline), web design firms, etc. These businesses impact the rest of society. Real, everyday people buy from these businesses and often rely on them. Your family interacts with them, understands them, knows them. A startup is a game. You play by th…

I enjoyed the article, never liked the term startup vs business, and nothing (not even hn) can really prepare you for what to expect when you actually go for it and start one.

But it's not a game. When people's businesses (even startups) fail, there's real harm done, maybe harm that will take years to repair. I guess when it's OPM who cares... but that attitude can be a precursor to irresponsible spending/investment and there seems to be a bit of that going around these days.

Re: My thoughts on why I will not call my business a startup again

#30
post #18
post #13

I think today, startups and businesses are two different things. A business makes money. You see them all around you. Restaurants, companies that sell products (online and offline), web design firms, etc. These businesses impact the rest of society. Real, everyday people buy from these businesses and often rely on them. Your family interacts with them, understands them, knows them. A startup is a game. You play by th…

While I agree with most of what you said, the one outcome you haven't mentioned is the startup becoming a business. Start off spending VC money while putting together your business model and monetising. Exit your startup 'phase' with all of that in place, and making profit.

One thing I don't get... someone please enlighten me..

If a VC puts money and a startup doesn't get acquired, or goes to an IPO, but becomes profitable, the VC doesn't get anything, right (assuming no dividends)?

So making profit in that sense is still not considered success. So there's some validity to the idea that startups are a game. You're betting on a bigger fool acquiring it, whether it's another company, or the public market. Sort of like buying stocks.

Post reply on HN