Why do we have to make it so hard to define what a startup is?

I am going to keep it simple here.

Startup doesn’t generate profit. Business does.

Let’s don’t make it so complicated that we have to add words like metrics, scalability, usability, team structure, investment and [some crazy words] to define these two terms.

The reality is as simple as it could be.

If your company doesn’t generate profit, it is a startup. If your company does generate profit, it is a business.

Simple and straight forward.

A barber shop is a business from day one. A SAAS company could be a startup or a business. And Facebook has been a startup for years before it became a business.

Keep this definition

You will be able to easily identify all the companies around you whether it is a startup or a business.

You could have a new company, for your first month, it made $30,000 revenue and it burnt $50,000. So, for your first month, you are a startup.

In your second month, you made $50,000 revenue and it burnt $20,000. So, now you are a business. And, you could never call your company a startup again.

So stop calling your company a startup if it shouldn’t be.

The ultimate goal

The goal of a startup is to become a business which is to generate profit.

You might want to sell your startup, but it is your goal, not your company.

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