“In comparison to traditional business ventures, startups are expected to grow rapidly, at a rate of between 5% and 7% per week in their initial stage” – Paul Graham, co-founder of Y Combinator
The main difference between a startup and a small business (in the early days) is their attitude to growth.
To run a business, you don’t need to have access to a large market though obviously the largest “addressable” market is a good thing. You just have to follow a simple rule – make more money than you spend.
The focus on growth with startups sets them apart from a small business. The need for rapid expansion of the market is why they’re much more hungry for capital than most small businesses. And while an “exit” is not always the end goal, the ability to visualise an exit is definitely part of the mindset.
A startup can also be defined as:
A temporary organisation whose purpose is to find and execute a sustainable and scalable business model.
Sounds easy huh?