Nowadays almost everyone wants to be his or her own boss and wants to have his own business. From 70 to 80 percent of the employees all around the world are convinced that the best option of having your own income is simply by having your own company or business. Thus year by year more and more people are looking forward to their own startups. However, the thing is that not all the people know that there is a significant difference between what small business is and what startup is.
Do you still think that startup is just the newly founded small business? Well, then here the answer is.
There is a huge difference between a small business, start up and large corporation which are based on completely different strategies.
- A startup can be describes as the so called temporary organization or business which has the potential to develop, to progress and to become larger. Startup is normally to have a quick and productive impact on the whole market and to become something larger than it was. So basically, a startup is not just a small business, but it is a small business at first which can quickly turn into something larger and bigger in the industry. So now you know that startup is scalable unlike small business.
- The owner of startup is not just interested in having a business which will bring some kind of outcome, but most usually he wants to take over the whole industry, that is the whole market. The owner thinks that she or he owns a great idea which will turn her or his startup into a huge company, which will be able to compete with other companies in the same industry, take the clients from the other companies and thus her or his startup will turn into a huge successful business and will create a new kind of market. Now you can still have some misunderstandings about the differences between startup and small business.
- Well, in case of small business we have completely another kind of view. In case of small business the owner is either interested in small kind of income and business or the business actually does not even have the potential to become something larger and greater. Small business traditionally is set independently, for some kind of profit but it does not have the potential of becoming dominant in the field. Thus we can understand that one of the basic differences of startup and small business are completely different. The owner of startup is intended and is interested in taking over the field, while the owner small business is just intended to have its own small share in the market, which obviously is not the dominant one.
- Besides this, however, there is another difference as well. The thing is that startup is temporary while the small business can be of long term. I know you still might not get this fully, but here is the explanation.
- Startup has the potential of becoming the dominant one on the field, of becoming highly successful and getting bigger and bigger, which actually means that startup cannot remain as startup for a long time, either the owner’s will meet his expectations and the startup will no more be startup but a successful business having the leading role in the market, or it will fail, which means that it will no more be startup. So in both scenarios we can see that startup is temporary.
- Besides this, the startup is much more complicated than the small business. Just because the small business is not intended to become the dominant one, it strategy is less complicated. While the strategy of startup must be designed in a way so that it will be able to become the leading one by crushing the competitors.
- There is another difference between these two. The startup and small business are founded differently. Both startup and business are set thanks to the owners’ personal money, however, if startup becomes successful it will be enchanting for other donors as well. This means that it will receive additional funding from other investors.
As you can see, there is a lot of overlap between these two phenomena, however, if you take a time and try to understand the differences, you will understand that there are quite a number of differences that make the startup be different from the small business. Startup is much more complicated than the small business, however, they both require some skills that will turn the business or startup into something successful. Small business can also be successful within the potential of small business that it can function. So if you want to run a small business or a startup, you must be acquainted with these two much deeper.
