4 ms·

When I talk to friends about what I'm working on, I call it a "small business", and not a "startup", even though its purely software and could scale without sub

When I talk to friends about what I'm working on, I call it a "small business", and not a "startup", even though its purely software and could scale without substantially growing costs. I think the word "startup" gives the wrong impression—I don't care about scaling aggressively, I don't want to grow the team, I don't want to raise outside capital, I'm happy to stay within the niche. I think this framing tends to generate less pushback (and focus the conversation more on how I can serve the niche better). I suppose the more precise word for this is a "lifestyle business", but not as many people are familiar with that term, and it can have a bit of a different connotation: https://en.wikipedia.org/wiki/Lifestyle_business https://en.wikipedia.org/wiki/Lifestyle_business

scubakid 4y ago
I like the term lifestyle business... but I'd be hesitant to use it until the business actually supported my lifestyle. To acquaintances, I'll often just say "I'm building an app". Small business is a decent alternative, but a lot of the time when I use that term I'll feel pressure to clarify that it's not like.. a lawn mowing business or something. (nothing against those though!)
- yieldcrv 4y ago
  I used the term lifestyle business for a while, when dating and on dating apps. Women were mostly enamored because they thought it was like a Youtuber thing, or lifestyle in the fashion sense, or a Youtuber telling people about lifestyle fashion of some sort. Very different from "any line of business, implied as passively w/ recurring revenue, that happens to supports your lifestyle" (I pivoted away from that, I found other truthful things that hit pretty well.)
jononomo 4y ago
On the other hand, I was hired at a startup a few years ago that had never raised money, had been profitable for a decade, and was just minting money hand over fist. It was a tech company, though, so it qualified as a "startup". (It was EasyBib.com)
- mdorazio 4y ago
  Just because you're a tech company does not mean you're a startup. Especially if you've been running for 10+ years...
- yieldcrv 4y ago
  yeah isn't it interesting how the unnecessary and easily harmful thing of raising capital is seen as validation? it just gets you press, but if there isn't really a larger TAM then you can personally wind up making less money than just keeping full ownership of the company. thinly held companies can be conduits for really decent sums of money completely privately.
- tasuki 4y ago
  I thought "startup" meant more along the lines of "quickly growing burning vc money with the goal of 1000x or perish" rather than "tech company"...
  - jononomo 4y ago
    No -- it means everyone is 23 years old and you get free lunch.

scubakid 4y ago

I like the term lifestyle business... but I'd be hesitant to use it until the business actually supported my lifestyle. To acquaintances, I'll often just say "I'm building an app". Small business is a decent alternative, but a lot of the time when I use that term I'll feel pressure to clarify that it's not like.. a lawn mowing business or something. (nothing against those though!)

yieldcrv 4y ago
I used the term lifestyle business for a while, when dating and on dating apps. Women were mostly enamored because they thought it was like a Youtuber thing, or lifestyle in the fashion sense, or a Youtuber telling people about lifestyle fashion of some sort. Very different from "any line of business, implied as passively w/ recurring revenue, that happens to supports your lifestyle" (I pivoted away from that, I found other truthful things that hit pretty well.)

jononomo 4y ago

On the other hand, I was hired at a startup a few years ago that had never raised money, had been profitable for a decade, and was just minting money hand over fist. It was a tech company, though, so it qualified as a "startup". (It was EasyBib.com)

mdorazio 4y ago
Just because you're a tech company does not mean you're a startup. Especially if you've been running for 10+ years...
yieldcrv 4y ago
yeah isn't it interesting how the unnecessary and easily harmful thing of raising capital is seen as validation? it just gets you press, but if there isn't really a larger TAM then you can personally wind up making less money than just keeping full ownership of the company. thinly held companies can be conduits for really decent sums of money completely privately.
tasuki 4y ago
I thought "startup" meant more along the lines of "quickly growing burning vc money with the goal of 1000x or perish" rather than "tech company"...
- jononomo 4y ago
  No -- it means everyone is 23 years old and you get free lunch.