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My colloquial understanding is that Startup is meant to grow fast, Business is meant to grow slow. Some of the causes and effects: 1. New business may have a
by NikolaNovak 4y ago
My colloquial understanding is that Startup is meant to grow fast, Business is meant to grow slow.
Some of the causes and effects:
1. New business may have a proven business model, customers, product, market. Startup may have to find or create any of those
2. New business may have some capital to build/invest itself (I've worked in a restaurant, saved up, now opening my own). Startup is based on idea/people/work, but likely has no internal capital
3. Both have risk; but in some ways New business risk is known & understood. Startup's risk may be as undefined as their product/market.
As frequently used, there's also a
4. Expectation of profit / failure rate. A new business would be happy to succeed with small profits, certainly very much over bankruptcy/shutdown. Startup ecosystem/expectations are built around fail or succeed wildly.
- rising-sky 4y agoI think the first point is probably the most differentiating characteristic. Startups are typically about innovating, doing something differently from what's expected or the norm. Typically, but not always, this leads to disruption in the domain if the startup is successful. But it should always be about innovating or attempting something different in its domain, otherwise it's just another business.