Dominate the competition
Entrepreneurs have existed since agricultural tribes traded their first stone tools in the marketplace. King Croesus minted the first coin in the sixth century, and up until the 19th century, most businesses were small businesses.
So what’s so special about a startup vs. small business?
Once technology entered the picture, business models began to diverge. The term “startup” first appeared in 1976 in a Forbes article in reference to data processing. After the dot-com boom of the late ʼ90s, we began to hear “startup” everywhere.
This gives a big clue to the difference between a startup and small business: the term “startup” usually refers to a tech company. The use of technology allows them to follow a different, accelerated business model that does set them apart from small businesses.
If you’re thinking of starting a company, it’s essential that you know the difference between a startup and small business. Only then can you choose which model matches your business identity.
Dominate the competition
Startup vs. small business: Which is right for you?
Startups have been given an almost mythological status thanks to wild success stories, cults of personality and the entertainment industry. They look exciting – but they’re also filled with risk, and they work better for some types of products and services than others.
Don’t make the mistake of thinking that startups are the only way to get rich. You can still grow a small business into a well-oiled machine that makes money for you while you’re not there. Every restaurant franchise, global law firm and regional car dealership chain started out as a small business.
Deciding between a startup vs. small business has less to do with making money and more to do with the industry you’re in, as well as your own personality, leadership style and risk tolerance.
