Many terms in the business world are a little confusing, but knowing the difference can help you to get your company off on the right foot. For example, do you know if you have a Texas startup or a small business? You may think those are the same thing or that every company, in the beginning, is a startup, but that is not correct. There is a difference between these two types of companies.
Entrepreneur explains that the critical difference is the scope of the business. A small business focuses on the local market. Your goals are to capture that local business and do well in that geographic location. With a startup, the goal is to grow. Your focus is on growing as fast as possible and storming the market when you first open to customers. You want to move into other markets beyond your immediate geographic location quickly.
A small business has reserved goals, whereas a startup has large-scale goals. Do you want to open a little shop in your home town, or do you want to make it big in the beauty industry by introducing the next best product?
There is also a difference when it comes to making money. As a small business owner, you want to turn a profit. Ending the year in the black would be a huge accomplishment for you. However, if you have a startup, you are not focusing on making a profit but rather making a profit to reinvest in your business so that it can continue to grow.
You need to know which type of company you have before you ever make your first sale. This information is for education and is not legal advice.
