Startup vs Small Business. What’s the difference?

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Not all businesses are created equal. The guys that started Airbnb, or the guys that started Slack- set out to build a multi-billion dollar company that would IPO or get acquired for an insane amount of money.

Those are the entrepreneurs that we (mostly) hear about, and that we look up to, and that’s fine. Who doesn’t want to build a business that transforms the work?
But the story of how they built their businesses doesn’t necessarily apply to everyone. Not all businesses are Amazons. Not all businesses are Facebooks or Twitters.
While these companies started in garages and dorm rooms, they were able to raise multiple rounds of venture capital (mostly from Silicon Valley investors) and were able to fuel their exponential growth because they were tackling an insane marketing opportunity- with a new, nonexistent or highly innovative approach.
The problem we often see is that many small businesses try to follow the exponential-growth-VC-funded approach, simply because it’s the stuff that we hear about, and we assume ‘that’s the way things work.’ It’s not.
I like to draw a line here- between the blockbuster, unicorn- Silicon Valley-type of startup, and the smaller startup, the company that could become a $10-20 or even $50 million company. There are different rules for each one of them: from fundraising, type of investors, recruiting team, and co-founders…
Terminology is confusing here. They are both startups. They are both small businesses, at some point.
This video is about the main differences between starting a small business vs. starting a startup.
#startups #smallbusiness #entrepreneur

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This content was originally published here.