Startup and business — two similar terms, and unfortunately there seem to be no distinct boundaries between the two. Often, both are interchangeably used.
For a budding entrepreneur, it’s really hard to understand the difference between startup and business. And, as a result, their respective entrepreneurial goals failed to settle on the right side.
Therefore, I am bringing you this article. But…
Before I begin shooting my arguments on startup and business, I want you to understand that both of them are in the same basket. And, when you put your hands in the basket you have equal probabilities for either of them. What you keep and how much of it, is your choice.
If that doesn’t make sense; keep reading, and by the end, you will understand what I mean.
Make a note; I am not trying to draw a bold line between startup and business, as that would be impractical.
With this article, my only goal is to make you understand how businesses and startups are ideologically different from each other. However, when it comes to the real world, they both get entangled and are hard to detach.
Before starting with the difference, let’s understand what they are in themselves.
What is a Startup?
A startup is an endeavor taking shape in the real world with a potential idea; with a new or upgraded set of mechanisms that gives the world a better solution to certain existing problems.
In a startup, the product or the service is under the spotlight. That is, what you give to the world from the work on your table is what the true ideology of a startup is.
A startup when they succeed in turning their idea into a well-acceptable solution in society or the community turns into a company. A company is a grown-up version of a startup.
What is a Business?
A business is a model that is designed to earn money. Businesses do not focus on what they are giving to the world or how they are contributing to society. However, to really dig out money, businesses need to give an equivalent amount of service or product in return for the money they receive.
A small business when it grows turns into a larger business.
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Difference Between Startup and Business
The above elaboration of the startup and business gives a clear indication of what these are and how they both differ. But we will go through a more descriptive difference between business and startup.
Let’s look at the difference based on the following aspects.
1. Solution Vs Money
A startup is born with a purpose to solve an existing problem. They are built by underlying a particular problem that a particular community or society (in general) is facing, building/finding a solution to it, and trying to solve (or reduce) it for a better world.
Meanwhile, there is a constant need for funding or investment to keep their “solution-structure” working, and therefore they always need to have revenue generation from the work done to make it a self-sustaining solution with a long-lasting impact.
On the other hand, businesses are born with the purpose of making as much money as possible. However, to get money, businesses need to give something in return, hence they offer some product or services they have built or brought.
Marketing is one of their favorites; business stresses upon it a lot to bring out the most possible benefits.
Overall, both; the startup and the business do a similar nature of work but their priorities make them different.
2. Entrepreneur Vs Businessman
If you know the difference between a leader and a politician, you definitely know the difference between an entrepreneur and a businessman.
Both are relatable.
A startup is an endeavor of an entrepreneur (plus a winning team). An entrepreneur is a motivated person that identifies a problem, builds a solution for it, and thrives to solve it. He or she leads the startup.
Conversely, businesses are run by businessmen. They are more into earning and making money.
However,
“Money Making” attitude should never be perceived as a calamity or a heinous act. Money opens an ocean of possibilities. And, as a businessman, you can be more beneficial for the world than an entrepreneur.
But money with a negative attitude makes businessmen sick.
3. Idea Vs Business Model
A startup runs on startup ideas while a business works on a business model.
An idea is a thought-action that originated in the minds of an entrepreneur, that they dream to give real meaning in the world with their work-action.
A business model is a structure that may or may not be one’s personal, which one uses because that’s what they believe in for making money, or that’s what they have suitable resources for.
The business model is created or designed in a way that when someones invest time and effort, money is obtained as an output.
4. Experimental Vs Calculative
Startups are often an unexplored path that an entrepreneur needs to first find and then walk through it. Hence, a lot of processes are experimental in nature. A lot of risks is attached to it.
On the other hand, businesses are calculative in nature. Every penny is in the calculator and the majority of efforts are made to keep the financial profit positive.
5. Cooperation Vs Competition
Entrepreneurship is never competitive in nature. And why so? Because entrepreneurship is all about what idea you originally have and how you develop it into some sort of interesting and useful work for someone’s betterment.
You never look for what others are doing, as you are more concerned about what you are doing and how much impact your work is making.
Conversely, businesses either sell some services or some products or services similar to many others in the market. And, therefore their minds have some obvious intention to be ahead of others, giving rise to competition in the market.
A Common Question to Both!
Let me tell you a short story about my town.
Well! A man was worried by the direct heat from the sun in his porch garden. He decided to take advice from two of his friends, one with a business approach while the other with an entrepreneurial approach.
The Business-mind friend said; to get a big colorful umbrella installed, arguing that it would give an instant result, save a good amount of money and solve the problem.
However, when he asked the same from his friend with an entrepreneurial mindset, he said; to plant a tree and care and grow it to shade the porch. He argued that the tree would be natural, solve the problems, with some additional benefits.
Both the approaches are acceptable in their own way and no one.
Startup Or Business! Which One You Fits In?
Now that you know the difference between business and startup; you probably be thinking of which one is better for you?
And, as per the above arguments, you might have some positive vibes for a startup, while negative vibes with business. But, that’s not a healthy valid thought.
The most healthy fit for anyone is “their own sauce“.
Every industry has both the features, they solve the problems as well as earn, and thus every industry is built with its own proportion of startup and business.
You can be an entrepreneur with some portion of businessman, or a businessman with some portion of entrepreneur, at the same time.
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