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.
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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.
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