Jeff the Great Defines "Startup"

**WARNING: I am about to sound like an elitist, entitled asshole.**

When people ask me what I do for a living, I frequently say that I am the founder of a software startup. Sometimes, people respond by telling me that they are also into startups. They have a food truck, a house cleaning service, etc, etc. With all due respect, those are not startups!

Eric Ries wrote the best definition of a startup that I've ever seen, in his book The Lean Startup:

A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.

Awesome, right? I love it because it is so simple and short, yet it covers the key areas. Human. New. Uncertainty. So why isn't a cupcake shop or a bar a startup?

For starters, these are not new services. There is no question that most markets demand a bar. People have been buying and eating cupcakes for years. For the most part, nothing new has been created here. Sure, there may be a new way of delivering these products or a slightly different value prop, but in the end the product is essentially the same.

Which brings us to the next point: there is not extreme uncertainty. Sure, there may be some uncertainty but proper research and planning around starting your cupcake shop or neighborhood bar can reduce the uncertainty to minimal levels. It's relatively easy to figure out how many bars or cupcake shops a community can support, based on population. There are known, best practices that can be followed. Heck, with all the information available to use via technology and the web, it's probably never been less risky to start a small business!

I'd like to add one additional piece of analysis to Eric's definition. Based on the two points I make above, I'd also so that a startup is a business unable to attract bank loans or other sources of traditional debt financing. If a Starbucks executive left to start their own neighborhood coffee shop, there is little doubt that with a proper business plan, he or she would be able to obtain a small business loan from a local bank. There is little uncertainty in this venture. Little risk.

So what are these businesses called, if not startups? Small businesses. They are wonderful and critical to most economies. I take nothing away from the founders of small businesses. The successful ones are smart, adventurous people. Their businesses just aren't startups, and that is okay.

Jeff the Great Boycotts The Oregonian (or, why the newspaper industry is dying)

Reading through the archives of this blog, you'll see that there are a few popular topics I like to write about. One of them is the downfall of the newspaper industry. I recently had an online conversation with the new Business section editor at The Oregonian which only strengthens my grim outlook for a dying industry.

As some of you know, I have been working hard to build my own startup company. Nearly 2 years now and we are finally getting some real traction. Big news is on the horizon. During this time, I have become aware of many other Portland startups. Unfortunately, it seems as if these companies don't get much attention from The Oregonian newspaper.

A recent example is when my company teamed up with another Portland startup, GadgetTrak, to produce an innovative project called "stolen camera finder." It was interesting enough for the New York Times, Economist magazine, Popular Photography magazine, TechCrunch, Gizmodo and others. We sent information to the Oregonian's tech business writer and I even spoke with him on the phone about the project during a call for a different story. Nothing, no story. Apparently the Oregonian is too good for a story that the New York Times and TechCrunch like.

However, the Oregonian did have space in their paper for a July story about an eccentric millionaire that has sunk nearly $1 million into the development of a shaving razor that sells for $100,000 each (yes, you read that correctly, one hundred thousand dollars). Then, in late August, the Oregonian did a follow up story with "news" that the company has now produced an $18,000 model of their high-end razor. According to the August 25th article, not a single unit had been sold at either price point.

In the meantime, real Portland startups are building world-changing products, earning revenues, hiring employees and otherwise succeeding. When was the last time you read about that?

So when the second razor article hit the Oregonian's web site, I took issue with both the author (who I respect greatly) and his boss, the Business Editor. Here is our Twitter exchange, archived thanks to a cool company called Storify (which isn't from Portland):

What is your take, Portland? Was I wrong to question the Oregonian's coverage of this gimmick razor business or do they in fact do enough coverage of Portland startups?

Update, 9/24/11: The Oregonian today published a story about Geoloqi, one of the companies I mentioned in the comments below because I felt they didn't get the attention they deserved. Here is the story.

Jeff the Great Starts Up Your Weekend

During the weekend of March 5th - 7th I am attending an event I am really excited about. It is called Startup Weekend and I hope you will join me! The idea is to get a bunch of entrepreneurial people into an office space for an entire weekend, pitch ideas for startup businesses, join the team that sounds most interesting to you and then build a business in 1 weekend!

The concept has been going on for a few years now and was even created by an Oregon native. His name is Andrew Hyde, he is a native of Sisters Oregon and Startup Weekend is just one of the companies/organizations he has started.

First and foremost, the event is all about the experience. In reality, no one really expects the companies that get started to take off and make the participants millionaires. That said, some Startup Weekend companies have gone on to do very well for themselves, earning revenues and gaining major media coverage for what they do.

I just registered for the 2010 Portland weekend and I hope you will join me! Best case scenario is that you become the co-founder of a company that goes on to make you a very rich person. Worst case scenario is that you meet some cool new people, make new professional connections, learn about starting a business and have a whole lot of fun.

It is a no lose situation. Wont you join me?

Learn more and sign up here: http://portland.startupweekend.org.