10 differences between startups and small businesses

??The difference between a startup and a small business ?

?? While they sound similar, there are fundamental differences. Their goals and intentions may end up separating them from true small businesses.

??Both types of businesses start with a person and an idea. ?? and It is very important to understand the differences between startups and small businesses and realize what is best for you. This ability will allow you to correlate the possibilities and expectations of each in order to choose the best plan to achieve your desired goals.. ??

?? I’m looking forward to chat with you in the comment below ???let’s shape your business ???

??1. Innovations

One of the most important differences between startups and small businesses is product or service innovation.

Small companies do not claim to be unique. And startups aim to create something new and improve what already exists.

??2. Scope of application

Small businesses progress within the limits set by the entrepreneur himself. A startup, on the other hand, puts no limits on its growth and focuses on conquering as much market share as possible.

???3. Growth rate

A small business needs to grow quickly, but its priority is to make a profit. When a company opens profits, its growth is as needed. But the startup must always grow and in the shortest possible time by creating a replicable business model.

??4. Profit

The small business aims to get revenue and, if possible, a profit from day one. How much profit the business makes on closing depends on the appetites of the leader, let alone the plans to expand the business. But it can take months, even years, for a startup to earn its first pennies.

??5. Finance

To create your own company, you usually only need private savings, investments from family, friends, bank loans and/or investor funds. But for a startup, many projects are carried out by private means or with the help of family members and friends. However, crowdfunding is becoming more and more popular.

??6. Technologies

No particular technology is required for small businesses, but there are many off-the-shelf technology solutions that need to be applied to achieve the company's main goals.

Technologies are often the main product of startups. But even if it is not, the startup cannot help but use new technologies to achieve rapid growth and scale.

??7. Lifecycle

32% of small businesses are closed within the first three years, which is not bad compared to startups that are 92% closed within the first three years.

??8. Team and management

For a small business, as many workers are usually hired as needed in order for a business to operate within the established limits of growth.

On the other hand a startup manager must develop leadership and management skills from the beginning, as the startup must grow as fast as possible.

??9. Lifestyle

Small companies, compared to startups, take fewer risks and duties. Therefore, it is possible to combine professional and personal life quite well. For the case of a startup, if there are funds from investors, the company will start making profits sooner. So there is no time to waste. There are people next to you waiting for you to create something amazing.

??10. Exit Strategy?

And last, but not least, on our list of key differences between startups and small businesses is the exit strategy.

What will your company become?

A small business. Two versions here: make it a family business or sell it. But a startup. It usually goes to the next level with a major sale or an IPO Initial public offering.

??It’s very important to understand the differences between startups and small businesses and realize what's best for you. This ability will allow you to correlate the possibilities and expectations of each in order to choose the best plan to achieve the desired goals.

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