4 MAJOR DIFFERENCES BETWEEN A STARTUP AND AN ONLINE SMALL BUSINESS
What are the key differences between a startup and a small business?
Failure is one metric where small businesses and startups converge, i.e. about 2 out of 10 businesses fail during the first year, likewise 9 out of 10 startup fail.
Let me summarize how the two differ.
- Small business are generally funded by the owners themselves, which means they are focused on profitability right from the start. Startups are more focused on revenues and growth during their early years.
- Small businesses have a pretty good idea about their business model, whereas startups mostly figure it out during the early months or years.
- Small business, esp. Online, can easily be run by one person whereas startups are almost always led by a team from the get-go.
- Startups chase large markets ($1B+), whereas small businesses or online businesses focus on niche markets and small customer segments.
Last but not least, subject matter discussed in this post, as well as others, is covered thoroughly in various online courses offered by Private Label Mastery.
Please feel free to share your questions or comments, I will be answering them over the next few days.