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What you need to know about startups

Small businesses and startup businesses are often compared. However, they are two entirely different things. A startup business is in its own category, often with its own pitfalls, benefits, and patterns of success.

General Assembly states that there are several things that differentiate startup businesses from their counterparts in new, small business. According to professionals, a startup is considered an organization that searches for a business model that is “repeatable and scalable.” This means that they improve their own business model and focus on finding new ways to do so quickly and efficiently, to the point where the entire market around that type of business is affected by the way that it works.

Additionally, small startups will always aim to become larger. Even if they are similar to small businesses at the starting point, many small business owners are content to remain at their current size, or even aim for it. However, startup owners will need to possess the drive, determination, wit and creativity to really turn the market on its head and make big waves in their industry of choice.

The Business Dictionary further defines what a startup is by saying that it is the start of an enterprise, reflecting the ambition of the person or people behind it. This is the stage where the business structure is set, where the company foundations are laid, and where financing is found.

There is much debate on what does or doesn’t constitute as a startup. The distinction is difficult to make, but worth looking into.

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