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small business: a small business that intends to stay small e.g. a hamburger shop startup: a small business that intends to get big. example: a chain of hambur
by 10ren 17y ago
small business: a small business that intends to stay small e.g. a hamburger shop
startup: a small business that intends to get big. example: a chain of hamburger shops (of course a chain is only one way to "get big").
Note that because they are distinguished by intention, you could have two factually identical hamburger shops, with one being a small business, and the other being a startup run by a deluded nutter, who crazily envisioned a chain of hamburger shops, when every sensible right-thinking person knew that was silly. But I would call it a startup, because of the intention.
pg thinks that it's rare for a startup to succeed (read: "get big") without funding (I'm not so sure, but I can't think of any counter-examples: google, yahoo etc all had funding).
37 signals advocates organic growth, and this works really well for a small business, such as "just a website that sells license plates". 37 signals themselves seem to have grown significantly, but I'm not sure they would be classed a "big company", but seem on the small end of "medium/small business" - therefore they are not (yet) an example of a startup getting big without funding (I'm not sure of their intention - it could be that they don't want this; i.e. that they aren't a "startup" at all). Joel's Fog Creek software is also small at the moment - I don't know whether he intends to become big, and so whether his company is a startup or a small business.
- ovi256 17y agoI do not agree at all with your definition of startup. I would just put it under small bussiness too. Yes, they have the intention of getting big, but everybody has that hope. pg puts it well in one of his essayes: a startup is a company that solves a hard technical problem. The techical part is essential, not an afterthought. A fast-food chain would use tech, but it would not advance the art.
- killingmichael 17y agoI really like Eric Ries definition of a startup: A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. http://startuplessonslearned.blogspot.com/2009/05/lean-startup-webcast-post-game.html http://startuplessonslearned.blogspot.com/2009/05/lean-start... If I was to add anything to it, it would be something about 'ability to scale'.
- 10ren 17y agoNot everybody has the hope to get big, e.g. my favourite cafe doesn't. I would say that someone who wishes to get big, but doesn't take appropriate action, will still have a startup, albeit likely unsuccessful. You might define someone's company as not being a startup because you don't think they will be successful - but how do you know they won't be? Hence my ironic use of "delusional" etc. Many startups were doubted before they became successful. http://www.paulgraham.com/wealth.html http://www.paulgraham.com/wealth.html references the example to which I alluded: McDonald's.