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No, they are not. SMBs have stable business model. Startups are searching for a business model. This is startups 101. Startup can become a smb in the future. SM
by vdaniuk 13y ago
No, they are not. SMBs have stable business model. Startups are searching for a business model. This is startups 101. Startup can become a smb in the future. SMB may decide to pivot and create a startup that is developing a complementary product.
- teleclimber 13y agoAgreed. A business is a startup if it is pivoting on a regular business, or developing the product.
- jmduke 13y agoMy favorite definition of a startup is that of a company that prioritizes growth over all other metrics.
- jacques_chester 13y agoIs it the model or the income which matters? If it's the model, then "startup" means "any business which isn't profitable with its current model". If it's the income, then "startup" means "any business which isn't profitable with its current model". At least, that's how it appears to me.
- anigbrowl 13y agoA valid point. But we don't think of restaurants as startups, even though they typically take 1-2 years to become profitable.