Is a small business the same as a startup? Both terms are used a lot in entrepreneurship, but they’re not exactly the same thing.
A small business owner uses tried-and-true methods. You might sell a unique product, but your setup is a little more conventional. Maybe you’re opening your own restaurant, a supply company, or an online store. You have models for what your business could look like.
On the other hand, startup founders are attempting something entirely new utilizing technology. They are looking to “disrupt” or change the way we normally do things. Believe it or not, Airbnb, Uber, and SpaceX began as startups. While they all share similar characteristics, there isn’t a standard blueprint for what a startup should look like.
Let’s consider the basic differences between a small business and a startup:
The thing to keep in mind is that both models can lead to growth and financial success. To determine which option is a better fit, reflect on the nature of your idea, as well as your long-term goals.
If you think you’re going the startup route, you can read more about them in the second mini-lesson, Startups 101. If not, you can continue on to the next regular lesson, That First Spark.