Most people think of a startup as simply a way of referring to a small business. Which couldn’t be further from the truth. Do you want to know what is a startup and what is a company?
There is a huge difference between the two. In recent years it has been shown that the skills and knowledge required to work in a company are not necessarily the same as those needed to create it.
For this reason it is important to distinguish very well what a startup is.
-What is a Startup?
Steve Blank, renowned academic and entrepreneur, creator of the client development methodology and the Lean Startup movement; He affirms that the big difference between a startup and a company is that the first focuses on doing research, while the second is mainly dedicated to execution.
-What is a company?
An established company already has a proven business model, which is being executed and improved so that it lasts over time. By contrast, a startup is in looking for that business model.
-Objectives of a Startup.
From this perspective, one of the objectives of a startup is to find a model, that is, how your company is going to make money; How will you create value? While offering products and services to its customers.
A startup is designed to look for a model that works recursively. That is, you must find marketing, sales, and production processes that work over time. Also, that are repeatable.
In the same way this model should be scalable. That is, that it can support growth and generate income quickly.
A company already has this model, with these processes and its main function is to execute them.
-What is the responsibility of entrepreneurs to create a Startup.
An entrepreneur must focus on finding this model quickly in such a way that it generates a great impact in the market in which his idea is found. Why? Because as entrepreneurs our ultimate goal is not to create a startup; is to build a great company.
With this in mind, we find that a startup is practically a stage between your business idea and building a great company.
As Blank describes it, a startup is an institution temporarysince its main objective is to become a great company.
Having said this, the answer to “what is a startup” created by Steve Blank can be constructed:
“A startup is a temporary organization designed to pursue a repeatable and scalable business model.
On the contrary:
“A company is a business organization that sells products or services in exchange for revenue and profit.”
If you have a business idea and want to develop it, this is your job. Remember the difference between working in a company and creating one.
- Look for a repeatable and scalable business model.
- Build and model.
- run it.
A startup is NOT a small version of a large company.
Do you want to know more about startups and how they generate millions? Click here!
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
