A small business is NOT a startup!


The phrase ‘startup’ has become very trendy and is heavily overused. With governments and incubators touting ‘startup support services’ and ‘growing the number of startups’. Everyone seems to think that any early stage business is a ‘startup’, which, in my opinion is very misleading. Most of the time what they’re talking about is a business starting up.

Every business needs to start somewhere and at some point it will be small. Does this mean that all small business are ‘startups’? NO!

Let me clarify. A ‘startup’ – in the sexy trendy sense – is a small business with high growth potential. They’re highly scalable and can be very profitable. Small business that remain small business or grow slowly into medium size businesses are not this. (i.e. just a business starting up) NOT a startup (in the sexy, Silicon Valley, big potential kinda way.

Venture capitalists, rapid IPOs, ‘overnight’ success stories only happen when you’re swinging for the fences and aiming for the sky. This is not the trajectory of normal businesses. No matter how you are funded, you must be thinking big to call yourself a startup.

There is nothing wrong with starting a normal small business, wether it’s a lifestyle business or not. But not distinguishing between one that has real potential and one that is just mediocre is a grave mistake. You have to approach the 2 totally differently in every way. Your strategies are totally different. And if you don’t distinguish what you’re aiming for well enough, you’re always going to do it badly.

One thought on “A small business is NOT a startup!

  1. Well, since the key point is POTENTIAL then it’s note the business itself who prevents it being a startup, but rather a manager/owner of the business who cannot develop or improve it to bring something new for the customers. Believe the reason startups are often mixed up with small business companies is that there are not so much investors willing to give money to build a brand new big company from the scratch, so startups that want to change the world and to offer something new are doomed to start as a small business.

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