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When Does a Startup Stop Being a Startup?
Written By Scrivs on Oct. 18, 2007.
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Is there an official timeframe for this? I would think after a year a company would stop being referred to as a startup but maybe I'm wrong. I haven't seen any pattern to suggest there is any reasoning from when you stop calling a company a startup so I figured the Community had the answer I am looking for. Is being referred to as a startup for most of the company's life like being called a kid still when you are an adult?
Ozone42
Written Oct. 18, 2007 / Report /
For me, I'd say there's a couple requirements.
During the first web bubble I worked for a couple startups. Only one got off the ground. All of them got good investments initially, but most simply didn't have the leadership or the product to make it. One of them was in business I think three full years without making a dime.
thebeancounter
Written Oct. 19, 2007 / Report /
I don't think there's a specific "time frame" that classifies a start-up. I think a start-up graduates when it has all its "crap" together. For me, that means:
1. Written business processes in place, including internal controls
2. A full organizational structure (this doesn't mean a ton of people, but there shouldn't be gaps in management
3. A full accounting staff (I'll still regard a co. as a start-up if they're still relying on outside consultants to do all of their accounting)
4. A solid 1-5 year roadmap for the future (you're still a start-up if you have no idea what your company is going to be doing next month)
I'm sure there are other things, but I personally believe these are some of the big ones. There are definitely smaller internet companies that may not meet some of the above qualifications, and be extremely successful, but in my eyes they still haven't graduated yet.
Ozone42
Written Oct. 19, 2007 / Report /
I like 1 and 5 there.
Flat organizations don't have much in the way of organizational structures, and tend to be some of the most efficient businesses around. I agree you should make sure you don't have holes where responsibility needs to be taken though.
I think having your own accounting staff is absolutely irrelevant.
oniTony
Written Oct. 19, 2007 / Report /
To me, a "start-up" is more of a company culture. If it's been 5 years in the making, and the team is still made up out of a couple of young developers, shooting Nerf balls at each other and their CEO, who's 5 feet away -- it's a start-up.
As soon as everybody starts taking things seriously enough to hinder productivity -- I guess that makes a company to be something else.