{"id":37736,"date":"2021-01-29T00:00:00","date_gmt":"2021-01-29T00:00:00","guid":{"rendered":"https:\/\/newrcblog.wpengine.com\/at-what-point-is-your-business-no-longer-considered-a-startup\/"},"modified":"2025-03-13T06:21:20","modified_gmt":"2025-03-13T13:21:20","slug":"what-is-considered-a-startup","status":"publish","type":"post","link":"\/us\/en\/blog\/what-is-considered-a-startup\/","title":{"rendered":"At what point is your business no longer considered a startup?"},"content":{"rendered":"

When you picture a startup, what do you see?<\/p>\n

A vibrant, colorful open-plan office?<\/p>\n

Quirky office perks like ping pong tables, foosball, and maybe office dogs running around?<\/p>\n

Or maybe you see a small, dingy office basement, with one or two people “hacking” away at trying to make their idea a reality in the wee hours of the night.<\/p>\n

The thing is, these are both realities of starting up a business\u2014and they are only two of the many, many scenarios out there when it comes to growing a startup. Whether the aim is to grow through angel investors or grit your teeth and make it on your own terms, success comes in a variety of different forms for a startup.<\/p>\n

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\ud83d\ude80 Pro-tip:\u00a0<\/b><\/div>\n

Learn how to start a new business in this in-depth guide.<\/a><\/p>\n<\/div>\n

The point at which a startup stops being called a startup<\/h2>\n

So, how do you tell when your startup is ready to take the next leap and become a fully fledged, more mature business?<\/p>\n

Let’s start with one metric that you should\u00a0not\u00a0<\/em>consider (even though many people still use it out of habit): time.<\/p>\n

You’re probably no stranger to the many<\/em> oft-quoted statistics about startups failing in their first year (and second year, and third year…)\u2014and in fact, the vast majority of startups don’t make it<\/a>.<\/p>\n

In the startup life, time is often skewed. Some startups luck out and experience massive success seemingly overnight\u2014and not even because of anything they’re <\/em>doing either. Sometimes, unpredictable changes in the world completely flip the script on us and give certain businesses a giant boost (while making others obsolete).<\/p>\n

And then there are many startups that have been around for years and years, while still maintaining a startup size and mindset.<\/p>\n

So, in our humble opinion, using time and age to gauge whether your startup is still a startup is out.<\/p>\n

Other folks have very precise numbers for revenue and growth<\/a> that they use to gauge whether a business is still a “startup.”<\/p>\n

Again, this can still be quite narrow. What if your “number” for startup growth is 1,500%? If a three-person business is growing at 1,350%, does that mean they don’t meet the criteria for a startup? And if a 500-person company is doing 1,500% growth, does\u00a0that<\/em> make them a startup?<\/p>\n

If you’ve been operating for less than three years but<\/em> have hundreds or even thousands of employees, does that<\/em> break the criteria of you being considered a startup?<\/p>\n

\n
\ud83d\ude80 Pro-tip:\u00a0<\/b><\/div>\n

See how Theta Lake, a compliance startup, went from super-lean to super-growth<\/a><\/p>\n<\/div>\n

Who’s asking?<\/h2>\n

Let’s get one thing straight: if you start turning your potential into real profits consistently quarter after quarter, then congratulations, you’re most likely on your way to something that is a viable business.<\/p>\n

For us then, the real question is\u00a0why\u00a0<\/em>you need to know whether your business is still a startup.<\/p>\n

If you need to know for investment purposes, for instance, and you just need hard numbers to prove your business is (or is no longer) a startup, then sure, using one of the above methods and relying on growth \/ revenue \/ headcount numbers is fine.<\/p>\n

If you’re talking to a friend or networking, on the other hand, and they’re asking you if your business is a startup, then that’s a different matter. Does your team have an agile startup mindset? Do you pivot quickly and adapt to your business landscape? How big (or small) is your team? All of these questions might factor into your answer\u2014and sure, it could get a little complicated.<\/p>\n

But who says you\u00a0have\u00a0<\/em>to say “yes” or “no” to the question of “Is your business a startup \/ Do you work for a startup?”<\/p>\n

Why can’t you say, “Technically yes, because [XYZ], but we’ve also been growing and maturing, so perhaps next year we’ll no longer be a startup”?<\/p>\n

There are so many nuances in that question.<\/p>\n

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What are the 4 key components of a successful startup?<\/strong><\/p>\n

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