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This is very much my line of thought. I have come to use different terms for these:

- Startup is what I now call VC funded companies. A startup can and often does 'make the world better' for some definition of better

- A profitable side-business that could grow into a large stable company starts as a side-project/side-business.

This short Sam Altman "How to Succeed with a Startup" video[0] plainly covers why this is so.

[0] https://www.youtube.com/watch?v=0lJKucu6HJc



But what do you call a new business that a founder is fully committed to (so, not a side business) but without an aim to grow to a huge valuation (just enough profit to live)? I think that's what the parent comment is suggesting, not a side business. I'd just call it a small business though, rather than a "startup".


That is an underserved area, terminology-wise. Perhaps 'small startup' captures it best where it can also have other startup qualities of leveraging tech or disrupting a market.


>But what do you call a new business that a founder is fully committed to (so, not a side business) but without an aim to grow to a huge valuation (just enough profit to live)?

You call it "a little Italian restaurant on the web". At least, @DHH (Rails and Basecamp founder) does:

Short compilation of his original talk, by Werner Vogels, Amazon CTO:

https://www.youtube.com/watch?v=fHHXddS0m14

Full DHH talk at Startup School 2008:

https://www.youtube.com/watch?v=0CDXJ6bMkMY

And it can give more than just enough profit to live. A lot more.




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