What is the Difference Between a Start-Up & a Small Business?

Start-up and small businesses are popping up and bursting onto the scene everywhere we look. Whether it’s good news, about their opening or launch, or bad news, detailing their closure, there are always small businesses or start-up companies in the media for one reason or another. But do you know what the differences are between small businesses and start-up businesses? While the differences might seem obvious, there’s a lot more than meets the eye with this topic. So, what is the difference between a start-up and a small business? Let’s take a deeper look:

What is a start-up business?

A start-up business is considered to be a business that is in the early stages of development. Instead of being an established company, its focus will primarily be on the development of products and services in order to make a splash in the market. 

It might still be establishing some USPs, together with some unique and innovative solutions to set them apart from the crowd. Start-up businesses will often have a vision of where they’d like to be in the future and they’re usually willing to do what it takes to get their business completely off the ground. 

You’ll find that the owner of a start-up business will be more open to advice and help in order to learn more about how the market works so that they can ensure their operations are as successful as possible. 

Their priorities will be less focused on profits and more focused on growth and scalability, which is one of the main differences between a start-up and a small business, but we’ll get onto the main differences a little later.

What is a small business?

A small business, unlike a start-up business, is considered to be an established business in its own right. It’s already gone through the ‘start-up’ phase and they’re now focusing on profit margins and continued success. Most small businesses are happy remaining just that – a small business. 

Therefore, small businesses shouldn’t be confused with a start-up business, purely because of its size. Small businesses often run for years, with their business experience allowing them to ensure stability in the market, regardless of the industry they work in. 

During their start-up phase, they too would have focused on growth and scalability at one point or another, but with a popular product or service on offer, they can operate as a large established company would, but simply on a smaller scale. The owner of a small business will have far more experience than the owner of a start-up business, that’s simply the nature of it. 

Start-up vs. small businesses: what’s the difference?

While the differences between a start-up business and a small business might seem apparent after reading the aforementioned sections, there are actually some more in-depth, less obvious differences between the two, and that’s what we’re going to be touching upon now. So, what is the difference between a start-up and a small business? Let’s take a closer look:

Business goals 

Start-up businesses have an aim to grow in an exponential way. Their business models will expand and change quickly, going from one model to another until one gets off the ground. A start-up is in the experimental stages, and a small business is not. The aim of a start-up business is to be profit-bearing from day one, and to continue to be that way until they, like small businesses, are in a comfortable space. The goal of a small business, more often than not, is to drive innovation and entrepreneurship in order to keep running as successfully as possible.

Growth intent 

A start-up business will inspect their growth plans on a regular basis, with an aim of taking over markets with disruptive solutions. However, a small business exists within a comfortable space in terms of growth and stability. They might have done all of the growing that they may wish to do and so they’re now just enjoying their success.

Risk levels

A start-up business will experience greater risk of failure, in comparison to a small business. This is because they’re still in the experimental stages, and so it can tip one way or the other. A small business, however, has a more solid chance of survival, because of their experience and the stage of business development and establishment that they’re at.

End goals

A small business has the sole end goal of staying operational for as long as possible. It does this by retaining customers and acquiring new ones. A start-up, on the other hand, is exploring their options and successes, going through several business models, possibly, in the process. Therefore, its end goal would be to execute a business model, in some form.

Make your business stand out from the crowd with Kumo

Whether you’re running a small business or a start-up company, it’s imperative that you’re getting as much exposure and public visibility as possible, but where do you start? This is where Kumo comes in. We have a complete range of digital marketing services available to you, from simple website hosting to PPC, SEO, copywriting and website design services, to name just a few. Regardless of the size of your business, or how established you are, we can put together a plan that works for you, both in terms of results and budget. There are plenty of ways in which we can propel your business into the spotlight, so speak to a member of our dedicated, professional team today to see what we can do for you and your business.

If you would like further information about the digital marketing services we have available here at Kumo, then get in touch with a member of our friendly, knowledgeable team today – we’re based in the heart of the East Midlands, but are proud to serve clients throughout the country.