Entrepreneurs are an essential part of the business world. These are the people who enjoy working independently, have ideas to meet a need in the market, and are self-starters. Startups are one method of business operation that has gained in popularity as people look for alternatives to traditional employment. But what makes a startup different from a traditional small business? These two independently owned businesses are similar, but there are key differences that entrepreneurs should understand so they have the information needed to structure their business properly based on their needs and goals.
What is a startup?
A startup can be a small business, but the goals of those who run a startup are usually different from traditional small business owners. Entrepreneurs with startups often have very lofty goals with ideas to build and expand exponentially in very little time. When compared to most small business owners, who are more focused on maintaining a stable and steady operation, those in startups generally take more risks, hoping for more rewards in less time.
Is a startup right for you?
It’s important to carefully consider your goals as a business owner before creating a startup. How much risk do you want to take, and how do you picture your future as a business owner? Generally, small business owners start a business to meet a need faced by their target market with expectations of growth, but on a much smaller scale than a startup. Business ownership is always risky, but those with startups often invest more and incur more risks because they’re aiming for significant future growth. Small business owners also want to grow and expand, but the goal is still to maintain that small business model, instead of turning into a corporate enterprise.
Business ownership comes with many challenges, no matter the structure you choose. Startups are usually created with exponential future growth in mind. However, most small business owners look for a more accessible success that can happen in less time, with less risk, and less potential for financial gain. Your goals, investment capital, and your market can help you determine whether a startup or traditional small business is the best choice.