3 ms·
At startup has these characteristics (only): 1. Is a business that makes money. 2. See point 1. above Everything else is considered either art (as in artist)
by tyrelb 17y ago
At startup has these characteristics (only):
1. Is a business that makes money.
2. See point 1. above
Everything else is considered either art (as in artist) or hobby.
Examples of non-startups:
1. A iPhone developer with 1 app, no revenue
2. A web development shop with no customers - or no significant growth potential (that's a hobby). Especially if you work for someone else.
3. You make no money - this is a "non-profit organization" or "charity" - or a "research institute". You often have to do other jobs on the side to eat, live.
Example of a startup:
37 signals build software for internal purposes (eg: Basecamp). This would initially lead you to believe this is a not a startup, but then the started charging for it on a mass level, providing good for other people, etc. This is a startup. Once you mature the revenue, you are no longer a startup.
- alex1 17y agoWhat do you mean by a "business that makes money"? A lot of startups operate at a loss for their first year or two. I think more often than not, instead of a young startup having positive net income, they either have (a) some kind of funding, seed, angel, or VC, or (b) they have some great revenue generation opportunities they can take advantage of (which would also up their valuation).
- tyrelb 17y agoCorrect - losses during the startup period are good so as long as the revenue potential down the line is there.