Chapter 1: Challenging the Definition of Startups

It can be quite exhausting to hear that your venture isn’t considered a startup, a sentiment I've encountered numerous times throughout my 25-year career. Many founders seeking assistance from me often face the same dismissive remarks about their innovative ideas or financial success—labeling their business as anything but a startup.

Consider a scenario from my past when I was raising funds to develop a product from a consulting firm that addressed significant challenges for both large and small enterprises.

“It’s not really a startup; it’s just a consulting firm.”

But the focus here isn't on billable hours; it’s about crafting a reusable framework that enables large, rigid organizations to operate more like startups through innovative tools and software.

“Still, it’s just a consulting firm.”

I countered, “I’ve experienced this transformation before with Financial Dynamics, which successfully evolved from a technical consulting entity to one that developed frameworks for other firms, resulting in an acquisition at 20 times revenue in just four years. I’m applying a similar strategy here, and it’s yielding results.”

“It’s still just a consulting firm.”

I insisted, “The consulting aspect is merely funding product development. This could rival something like the Project Management Institute, but with far less fluff.”

Ultimately, I never secured funding. It feels like a missed opportunity, especially considering how quickly venture capitalists are to dismiss a business as not a startup. Yet, to their credit, sometimes they are correct.

Let's Not Be Naive

I find myself in a unique position after having navigated the entire startup lifecycle 13 times. My advisory roles, both compensated and voluntary, have allowed me to delve into the intricacies of numerous startups—some genuine, others not.

Many of these ventures lack the essence of a startup; they are mere dreams, unscalable problems, or outright scams. I am intimately familiar with the distinctions, which is why I struggle to comprehend the tendency to label a business strictly based on its adherence to conventional definitions of a startup.

The reverse has also happened to me. Seven years ago, I embarked on a project that began as a whim but was rooted in addressing a genuine problem that required a scalable solution. The method I was employing to turn this solution into a product, however, left much to be desired. I was pursuing it for enjoyment, seeking to uncover the hidden successful product within the idea.

Investors approached me, eager to invest $250,000.

“It's a great opportunity,” they said.

I replied, “It could be a startup, but I haven’t yet productized it; my current approach is costly and time-consuming, lacking a substantial market potential.”

They insisted, “We want to invest because it has a trending feature.”

I explained, “That component was added out of curiosity. It contradicts the core solution I need, despite its popularity as a supposed fix.”

Their persistence continued, yet I declined, recognizing that accepting their investment could lead to detrimental outcomes for all involved.

Defining Your Own Startup Journey

Innovation often doesn’t provide a clear roadmap to a successful outcome; instead, it requires carving out your own path, albeit with no assurance that others will recognize your vision.

Three years ago, I took that funding-attracting project, abandoned it, and reconstructed it from the ground up, focusing on the solution.

Currently, I label this new endeavor as not-a-startup, as I lack the time to fully commit to it. Even with this mindset, I still face the same dismissive remarks.

“It’s not really a startup; it’s a content venture.”

To clarify, “This is not solely about content; it’s about delivering valuable information at the right moment.”

“It’s still just a content venture.”

I countered, “As a founder of Intrepid Media, although it didn’t result in an exit, it was profitable for 12 years. Here, I’ve designed it to scale.”

Still, the response remains, “It’s just a content venture.”

I continued, “In reality, it’s a two-sided marketplace with a low vendor-to-customer ratio, featuring a subscription model with proven longevity and high margins. If I were to fully commit, the potential to scale is significant…”

At this point, I often choose to disengage. Ultimately, I lack a definitive answer, as it requires individuals to possess insights they may not have, leading to superficial judgments.

However, my approach has been to build what I envision, irrespective of whether it fits the traditional startup mold. The less time I spent worrying about conforming to others’ definitions, the more time I could dedicate to acquiring customers and generating real value.

To me, that’s a universal definition of what a startup truly is.

If you found this discussion to be honest and insightful, consider signing up for my newsletter at joeprocopio.com for updates on my latest writings. For detailed startup advice, try a free 15-day trial of Teaching Startup.

Chapter 2: Reflections on Startup Experiences

The first video, "My Honest Reflections After Failing to Build a Startup the Past 3 Years," offers a deep dive into the emotional and practical lessons learned from startup failures, emphasizing the importance of resilience.

The second video, "Should You Start A Startup? | Startup School," discusses critical factors to consider before embarking on the startup journey, providing valuable insights for aspiring entrepreneurs.