What Is Not a Startup

And what doesn't need to be

Everyone wants to start a “startup” these days. You hear it everywhere—coffee shop “startups,” small consultancy “startups,” side hustle “startups.” But not every business with a bit of novelty is actually a startup, and more importantly, it doesn’t need to be. We’ve glamorized the word so much that there’s a misconception that to matter, a business has to be a “startup.” Here’s the thing: there’s huge power in knowing what’s not a startup and why that might be a good thing.

So, What Actually Is a Startup?

A startup is a business set up to scale. That means it’s designed for fast growth, for innovation, and usually, for changing up an industry. Startups embrace uncertainty like a badge of honor—they’re constantly adapting, testing, and taking big risks with the hope of equally big rewards. The goal is usually disruption, and the strategy is all about speed and scale.

The Misconceptions: What Is Not a Startup

Let’s set the record straight with a few types of businesses that often get confused for startups but don’t quite fit the bill:

1. Small Businesses: Small businesses are incredibly valuable but usually local, growth-focused but steady, and often not looking to disrupt an industry. Think about your favorite bookstore or a family-owned restaurant. They’re essential, but they’re not aiming for the type of exponential growth or innovation that defines a startup.

2. Side Hustles: Side hustles are brilliant—they’re born from passion, and they often fill unique gaps. But unless they’re aiming for rapid growth and demand your full-time attention, they’re just not structured like a startup. A great side hustle is part-time, and sometimes, that’s all it needs to be.

3. Agencies and Consultancies: Service businesses are valuable, but they’re not designed to scale in the same way a product-driven startup is. Agencies grow by adding clients, which is fantastic, but they’re usually built on skilled labor and one-on-one services, rather than a high-growth, high-scale approach.

4. Franchises: A franchise is replicable, yes, but it’s built on a set, proven model, not on innovation or constant adaptation. A new McDonald's branch is a business, but it’s not a startup because it’s not experimenting or trying to scale in the unknown.

5. Non-Scalable Services: Some businesses are about local appeal, personal touch, and staying niche. A high-quality, bespoke design studio isn’t aiming to scale globally. The value lies in what’s handmade, customized, or personal, not in rapid expansion.

Not Every Business Needs to Be a Startup

Not every business has to be a “startup” to have impact. Maybe it’s even better if it isn’t. There’s a lot to be said for building a business that’s bootstrapped, intentional, and focused on a small, loyal audience. That’s real impact. Not every business has to be VC-funded or aiming for unicorn status to be successful or fulfilling. Think of all the meaningful, community-driven businesses that keep neighborhoods thriving. Think of the brands that people love because they’re small, close-knit, and built with heart.

Building a business this way takes dedication and intention, and it can absolutely be just as fulfilling (if not more so) than shooting for rapid growth.

Why It Matters to Know the Difference

Understanding what a startup really is helps everyone—founders, investors, even customers—align expectations. Startups are high risk, high reward, but they’re not the only kind of valuable business. If you’re building something steady, sustainable, or community-oriented, your goals and your risks look different, and that’s not only okay, it’s important.

How to Figure Out & Build a Business That’s Not a Startup

1. Think About Who You Want to Serve and How: Start by identifying your ideal customer and community. Ask yourself: Do I want to build a small, loyal audience, or am I going for mass adoption? If you’re focused on local impact, a niche market, or slow, steady growth, embrace that and build around it. Create something that serves people deeply, even if it doesn’t serve millions.

2. Map Out the Growth Path that Feels Right for You: Building a business doesn’t have to mean rapid scale. Decide if you’re in it for the long haul, planning for sustainable profits rather than scaling as fast as possible. Set up a growth model that works at a pace you’re comfortable with, one that matches your lifestyle, values, and goals. Focus on organic growth, bootstrapping, or slow expansion without chasing every trend.

3. Set Up Clear, Sustainable Goals: Outline what “success” looks like in a way that matches your unique vision. Is it about consistent local revenue, community recognition, or a certain lifestyle? Build your business with these goals in mind rather than VC-fueled speed or massive exits. Goals like creating 10 loyal clients who stay with you for years or achieving steady monthly revenue can be just as satisfying and impactful.

4. Focus on Financial Sustainability First: While some businesses need external funding, many can thrive on self-sustained, slow growth. Focus on profitability early by keeping costs lean, managing cash flow carefully, and avoiding risky debt if possible. A profitable, debt-free business can grow comfortably without pressure, setting you up for long-term stability.

5. Design with Flexibility and Quality in Mind: Not every business needs to go “big” with product lines, services, or locations. Instead, focus on quality and depth—whether that’s providing amazing, personalized service or a high-quality product. Think about ways to deepen what you offer without necessarily expanding it.

6. Cultivate a Core Network: If you’re not aiming for mass scale, the power of a close network becomes more valuable. Build relationships with customers, local partners, and mentors who can help support your growth in meaningful, sustainable ways. A strong community is often more rewarding and sustainable than a vast, anonymous customer base.

7. Prepare for Slow Seasons and Market Changes: A business designed to grow slowly often sees seasonal or cyclical shifts. Build a buffer that allows you to weather slow times and adapt to shifts without relying on constant growth to stay afloat. Embrace seasonality as part of your rhythm, and let it guide your planning and cash flow management.

The Power of a Business That’s Not a Startup

Not every business has to—or should—aim for the high-risk, high-reward world of startups. There is immense value in businesses that choose to grow slowly, serve a niche, and build sustainability into their DNA. These businesses may not make headline news, but they often make a difference in ways that startups can’t. They create community, build trust, and generate long-term relationships that don’t hinge on hype.

If you’re thinking about starting a business and the startup model doesn’t feel like the right fit, remember that you’re not missing out. There is nothing inherently “better” about high-growth, hyper-scaled models; in fact, they’re often unsustainable and risky. Local businesses, small practices, and service-based companies bring balance to an economy obsessed with speed. They remind us that quality, consistency, and connection are powerful, too.

The goal doesn’t have to be global domination or exponential growth. For some businesses, the highest form of success is a steady pace, a loyal community, and an experience people can rely on. Whether you’re building a cozy bakery, a small creative agency, or a one-of-a-kind boutique, remember that there’s nothing small about creating something sustainable, intentional, and valuable.

You don’t have to be a startup to be successful, meaningful, or impactful. In fact, staying true to a slower, more intentional pace might be the best decision you make—for your customers, your business, and yourself.