Startup vs. Small Business

This differentiation has come up several times recently, and it is worth highlighting they key difference between a Startup, and an actual Small Business.

Startups are about acceleration. The priority is rapid growth in terms of market share, recognition, and customer loyalty, before your competition really know what is happening. These factors are more important than revenue or profits, as the view is for the short-term and the goal is a sale or major investment.

Small Businesses are all about the long-term. Sound financial decisions are key to building longevity and a sustainable business model. Attracting the right employees for long-term commitment also requires a certain stability in operations.

People have different views of where their business falls, within these categories, and the lines are certainly faint and rather blurred. These general rules, however, will help you determine how you are running your business when you first start out.