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

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

#31

Post by dean »

Sounds like the OP's idea of a startup is just an entity to acquire lots of users (eyeballs), and the money will follow, somehow. Sound familiar? Revenue? Profit? What's that?

And reading some of the comments here, it seems many people have the same idea. I am surprised at this. I thought we had all learned this lesson back in the last Tech Crash in 2001. A startup is a business. A business needs to make money to survive. The purpose of a startup is to get the point of making money as quickly as possible. Simple as that.

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

#32

Post by mc32 »

T-hawk wrote: post #27
bdg wrote: 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 demon…

And Mexican is the demonym for people from... The United States of Mexico.

Likewise, a New Yorker can be someone from the state of New York, or someone from the City of New York.

Besides. Geologically/geographically there isn't one huge American Continent. There are two land masses. The North American continent in which North Americans live and the South American continent where South Americans live.

In that respect it's like the Eurasian continent. No one from the European and Asian continents call themselves Eurasian. There is a term 'Eurasian' but that's for people of mixed heritage.

Basically, the parent poster is tilting at windmills.

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

#33

Post by elemeno »

untog wrote: post #19
kristofferR wrote: post #16

Earlier quoted context omitted.

But that's his point. If he was aware that his startup actually were a business, and not just a "startup", he would have operated it as a business (and likely learning and pursuing as much knowledge as he could). However, the term "startup" took his focus away from thinking of it like a business. Once he realized that it actually was a business (which needs profits) he knew that it was a bad one and shut it down.

But that's... insane. Changing your entire perception of the company you own based on the labels that you have chosen to apply to it ? When you run the thing you really ought to have a clearer idea of what is going on.

It's psychology - we all fall fowl of the labels we apply to ourselves.

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

#35

Post by badclient »

AznHisoka wrote: post #30
untog wrote: post #18

Earlier quoted context omitted.

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 t…

In that case, everything is a game. When I throw money towards a milkshake at McDonalds, I am betting that I will derive some pleasure from consuming it. Sometimes I do, sometimes I don't.

So, everything's a game - with varying odds of winning?

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

#36

Post by badclient »

timjahn wrote: 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…

These businesses impact the rest of society. Real, everyday people buy from these businesses

So either Facebook/google etc. were never start-up or they are making imaginary money(in billions, I must say) from imaginary customers.

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

#37

Post by timjahn »

badclient wrote: post #36
timjahn wrote: 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…

These businesses impact the rest of society. Real, everyday people buy from these businesses So either Facebook/google etc. were never start-up or they are making imaginary money(in billions, I must say) from imaginary customers.

You bring up a good point. Real everyday people aren't Facebook's customers, they're actually Facebook's product.

But Facebook does impact the rest of society. Families are sharing photos with loved ones, important news with those far away, etc.

Facebook's situation doesn't change my opinion though. It's an exception, not the rule.

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

#38

Post by wtvanhest »

AznHisoka wrote: post #30
untog wrote: post #18

Earlier quoted context omitted.

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 t…

VC's and experienced angel investors use a clause in the funding agreement which can force you to sell. That clause is probably never used in real life but its presence in the world of VC explains itself.

Really it is unlikely that you will create a lifestyle business which is funded with venture money and is one of the things that vcs avoid since it is a failure from their standpoint.

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

#40

Post by algoshift »

"startup" as a term of trade might be accepted within certain circles. Beyond that I think it sounds really dumb to anyone who's been in business for more than a few seconds.

One of my favorite WTF? phrases is "start a startup", particularly when uttered with the "gummy" California speech pattern of a 17-year-old.

Hmmm. "Start a Business", that's what you want to do. What the hell is "start a startup"? Some kind of a recursive call? Does it imply that you are in that mode forever?

When are you done "starting a startup"?

I can see someone saying "We are going to launch an experimental business to test an idea" or "We are going to test an idea for a business" or "We launched a business to test a few ideas". Now that make sense. The term "startup" is amorphous and "start a startup" sounds even dumber.

Oh, yes, then there's "do a startup".

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