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What's the Difference Between a Startup and a Small Business?

January 20, 2017

 

During the recent GIST Guru online program, How to Run Your Startup, Melissa Perri of ProdUX Labs and Ray Crowell of humble impact highlighted some key similarities and differences between a startup and a traditional small business.

 

Watch the Excerpt

 

Key Takeaways

1. A startup is typically not profitable - yet. They still rely on venture backing or investors to develop their idea or product.

2. There's a greater chance for small businesses - such as consulting or training firms - to become profitable more quickly without the need for outside investment.

3. Quite often small business owners need to employ many of the same tactics as a startup to get off the ground. That includes customer discovery, business planning, etc.

4. Some startups reach the post product-market fit stage, yet they're still not profitable. They may function like a small business, but they're still technically in a startup phase.

 

[Image credit: Pexels]

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