Startup = Growth

Paul Graham argues that a startup is defined by growth: a company designed to grow fast, whether or not it is new, technology-based, or venture-funded. He distinguishes startups from ordinary businesses such as barbershops, which are constrained in their ability to serve a large market. He says growth rate is the number founders should always track, and that Y Combinator measures it weekly, with 5-7% a week considered good and 10% exceptional. He also suggests founders pick a target growth rate and use it as a compass for decisions.