When Do Startups Stop Being Startups?

In Nigeria alone, there are hundreds of startups; with more springing up every now and then. For some, they’ve been in existence for a number of years, but are still referred to as startups.

The term has being overused, people throw it around even for companies that have gained global recognition.

How long do you have to be around before you’re no longer considered a startup?

Here are a few key things that signal you’ve made it to the big leagues:

Profit

Once your revenue model is working and you’ve begun to make profits, it’s a sign that you’re graduating from being a startup.

You know what you’re worth, and you pay yourself that amount instead of cheaping out to save money to line another pocket of the business, you have reserves in the bank, your employees have benefits, and you are profitable, then it’s high time to get rid of the term, startup.

Your Team Can Take Decisions

Are you able to take a vacation for a month or more, without having to interfere in business processes? Then, your startup has grown into a company.

When teams can take independent decisions without including the founding members, and without running into any problem, it’s not a startup.

Your Brand Is Able to Speak for Itself

When you don’t need to sell your company by showcasing your previous clients as examples to prospects, you’re no longer a startup.

When clients and other companies recognize your name, and even compete just to partner with you, it’s time to take off the term, startup.

Increase in Number of Employees

The number of employees a company has could also indicate whether it’s a startup or not.

If your workforce has doubled or tripled since its inception, you’ve expand to the stage where you have to move into an office to fit everyone in the same room and not everyone knows everyone else’s last names, you have multiple office locations or company headquarters, then you’ve graduated from being a startup.

What else do you consider to be signs that a company has left the startup phase?