Formula startup

After another portion of the read articles on silicone, visiting Startup Weekend and the IDCEE conference, I decided to ask a very simple question that torments me all the time: what is a startup?

It may sound strange, but everyone understands this concept in different ways. On the one hand, a startup has long been turned into a buzzword, but, on the other hand, without an understanding of the meaning of the concept, it is certainly difficult to find a common language with investors and colleagues.

I will say right away - I do not know the exact definition of the word “startup”, but I will try to speculate on what exactly a startup is not, and there, somewhere at the end of the article, we can find the cherished startup formula.
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I’ll start, perhaps, from the standard answers to the question “what is a startup”. Immediately, I note that these answers were not spoken by schoolchildren, but by quite decent and intelligent people associated with these same start-ups.

So, version number 1. Startup is what makes money

I will not say who heard. At first glance, it is logical.

But:

• a stall with a shawarma also brings money, but still the language does not turn to call a stall a start-up;
• Instagram did not bring money, i.e. Formally could not be considered a startup. Sold - earned money, theoretically now a startup. But, again, something is wrong here. Although “feels like”, Instagram is a startup.

Version number 2. Startup is a company

It seems too true.

But:

• you can create a company simply and do nothing else;
• companies are offshore and obviously not to be called a startup;
• Is an individual entrepreneur a company or not? Formally, the company, in fact - no;
• In my opinion, a trademark or patents is more important than a form of management.

Again something is not right. We go further.

Option number 3. Yandex on the day when he went to the IPO, has ceased to be a startup

Told Twitter leader Yandex. “Oooooh,” I said, and moved on to the next version.

Version number 4. A startup is a fast-growing business.

Well, a little warmer. Business - ok, I agree. Fast growing - also like ok. But, again, I recall banks, oil companies, operators of the hundredth connection, which, again, “by sensation” do not even remotely fit into the concept of a startup.

Version number 5. Startup is innovation

Honestly, I thought so before. Here you can still argue for a long time what innovations are and why Google, Coca-Cola and other facebook are considered innovative? In my opinion, nonsense. But let's say.

I can say that if a startup is an innovation, then all clones should automatically fall into the category of trash and the story should not contain a single success story related to twin projects, and the world would still use only one browser, ride one car and would sit on only one site.

Innovations cross out.

Ok, if none of the options came up, let's think about what could be a startup?

I have a website. I am a startup!

Very often I meet messages on various sites, ratings, how regular websites get there.

In my opinion, a site is a site. Not a startup.

That is, summarize:

• site is not a startup;
• young site is not a startup;
• young fast-growing site - not a startup;
• young fast-growing site that makes money - not a startup;
• A young, fast-growing site that makes money selling shawarma is not a startup.

On the other hand, There are TheVerge and StackOverflow, which, like sites, but at the same time are very similar to startups. I thought ... Well, ok, as long as we put this thesis aside.

I have a (unique) idea. I am a startup!

Theoretically, too, is true. But wait, there are 20 sites for real estate search, there is Vkontakte, there are a bunch of coupon sites, there is Yandex, in the end. All of these people did not have a unique idea; the implementation simply did not disappoint. Does it mean that the site for real estate search created tomorrow is already a startup. It is unlikely ... again confused.

I have a prototype and a business plan. I am a startup!

Again, the “vision” of the project in the form of a business plan is needed rather by investors, not so much by a startup. Although stop, we still do not know what a startup is. After all, if Yandex is a startup, then you cannot do without a business plan. Okay.

I have a mobile app. I am a startup!

Again, Runkeeper can be called a startup, 90% of slag in the stores is unlikely. Even if they bring some money.

Then what can be considered a startup?

I will not give an exact definition, but I will list the properties of an “average” startup, without which a project, idea, site or application cannot be assigned to a startup:

• A startup should create a new niche. No matter how absurd it may be, but facebook, instagram, twitter created around their projects a) a niche b) infrastructure c) a community and developers (if we talk about duplicate projects, they fill an empty niche and satisfy growing demand). In addition, if the market does not grow megabystro (exponentially), then everything that happens in this area should be called a business or entrepreneurship;
• the start-up team (!) should engage in full time; if it's not, it's a hobby, bootstrapping, or something else, but not a startup;
• outsourcing can never be considered a startup;
• the presence of a business plan, site, application, unique design, investor, earnings, office, innovation, patents - a necessary but not mandatory condition;
• start-ups must be deeply “in the subject” in the area in which they work, otherwise it’s divorce, PR, cronyism, kickbacks, case, dad-minister, mother is beautiful;
• and one of the most important, in my opinion, properties of a startup is the presence of assets (these can be both websites and applications, patents, knowledge, connections, expertise, distribution channels).

Something like this.

What do you think, what is a startup and what properties should it have?

Thanks for attention!