What’s the difference between a “startup” and just a new company?
In: Economics
While other responses are correct, no one is mentioning the **key** difference between startup and conventional fresh company (that also explains why most startups are tech related).
*Potential* for growth, or in other words, potential market size.
If you starting pizzeria, no matter how hard you try there is a hard limit on profits you’re gonna get from it. There is limited number of people you can serve, it’s just not feasible to drive couple hours just to eat **your** pizza. Sure, you can start in another location, but you need to rent it, hire new people – the costs increase linearly.
The startup is the idea for a business where with roughly the same resources you can potentially serve millions of people. With online services it’s just given (hardware is cheap and one server can *serve* thousands of people at the same time).
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