What’s the difference between a “startup” and just a new company?
In: Economics
The main difference is the possibility for rapid growth. That’s about it. Everything else other people are mentioning are sort of side effects.
There isn’t any exact line here, but generally speaking, if you want to start a new coffee shop, that coffee shop probably can’t grow 100% bigger every year, year over year, even under ideal conditions. Your shop can only fit so many customers before you have to get a bigger location or a second location, and that takes time to do. And once you have a second location, are you ready to double to 4 in the next year? double to 8? double to 16? Etc.. No, probably not.
A startup company in theory can. Startups don’t have to be tech companies, but being a tech company certainly makes it much easier to be able to grow that fast, because you’re just selling more software. Even a coffee shop could in theory do it this way, it would just have to have an innovative plan and start from the beginning with the plan for rapid growth and expansion. Most ppl starting a coffee shop don’t do it like this.
Startups exit the startup phase once they’ve squeezed all they can out of that “rapid growth” period.
Latest Answers