What's the difference between a startup and a small business?
3 comments
A startup is designed to grow rapidly. To do that it has to be a product company rather than a service company.
http://paulgraham.com/startupfunding.html (search for "physical")
http://paulgraham.com/startupfunding.html (search for "physical")
My view: scale/size of market
A small business is going to be mainly local/regional. A car dealership is a small business - might make the owner(s) millions, but still a "small" business.
Car manufacturers like the new Tesla Motors are start ups.
There's plenty of start-ups that aren't tech based, but tech firms probably lend themselves to scaling thus the majority of them being start-ups.
Non tech example: Stonyfield Farm = start-up Farms an hour from me = small/medium businesses
A small business is going to be mainly local/regional. A car dealership is a small business - might make the owner(s) millions, but still a "small" business.
Car manufacturers like the new Tesla Motors are start ups.
There's plenty of start-ups that aren't tech based, but tech firms probably lend themselves to scaling thus the majority of them being start-ups.
Non tech example: Stonyfield Farm = start-up Farms an hour from me = small/medium businesses
Small businesses are typically based on an established business model. Restaurants, bars, retail outlets, etc., count as small businesses.
Startups in contrast are an organization in search of a business model. Once it finds one it doubles down on the product search with a viable business model and develops it to profitability.
Startups in contrast are an organization in search of a business model. Once it finds one it doubles down on the product search with a viable business model and develops it to profitability.
I am truly curious - what constitutes a startup and how is this different from the thousands of non-tech businesses that are started every day?