It’s a war between a startup and a small business- Who wins it in the long term?

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With a high reaching popularity, the buzzword startup has been spreading like fire to young minds across the globe. Inventing new technologies, discovering brain-igniting ideas, initiatives that are well set but all of that sinks deep down in despair by only the first term of inception. And this has been quite a widespread scenario in the UK, US, India, Singapore, and many others countries.

Going into the in-depth details of a survey made on why this has become so rampant, the causes that floated up were so many that many encouraged, soon to be entrepreneurs took a back foot in their ventures. But there again, successful example of young entrepreneurs who have made it seem possible are quite known to us. From starting up firms that offer one of the Best IT Development Solutions to opening up boutiques, success stories are plenty enough to restore your faith in startups. Rather it depends on your plan and chooses to do so.

From a contradictory point of view, small businesses are mainly motivated by profitability terms and with the stability, it can also run for long terms. If the business brand can raise its credibility scores with genuine and quality products and building a strong customer fan base, it can surely run smoothly with the profit margins achieved rightly on time. Although the prospective ideas of a small business seem profitable enough, yet it can turn you down into troubles as well.

Both the startup and small business has both the part to plays. Now it has to differ from an individual to individual how they manage to cope with different angles that play key roles in both the ventures. Let us survey through the following key factors:

1) SCALABILITY

Startups are indeed very focused on scalability, and hence the initial momentum takes up really good. The aspiration of becoming business leaders pushes the maximum effort towards optimistic possibilities. But also due to extremity in doing so, the focus shifts unnecessarily other way leading to slow downfall. Whereas for small businesses the initial launch curbs the central focus cast on the scalability factor. This mostly happens because of the prime attention that has to be given to customers by small business owners. In both the cases, scalability works differently and neither too much nor too less attitude is any good for such ventures.

2) FINANCING

Here comes the big daddy of all factors that you keep in mind before or after starting a new venture. When a small business plan is settled in mind, personal savings can be thought of utilizing as the initial capital required. Apart from the big investments you need, later on, the beginning is almost set for the small business initiative. Financing for startups works differently altogether. Either you are lucky enough to find a trustable and suitable investor or you extend your hand of help to friends and family. Crowdfunding is gaining huge popularity with startup investing but then again safety precautions needed to be kept very clear in mind.

For example, in an idea to start a Top Web Design Company and Software Development, continuous investments are pretty required for various modifications on infrastructure and technology. Surely, the return profits are pretty high if done dedicatedly and sincerely with all aspects cemented in mind but the awareness of correct information regarding all the factors is essential.

3) STRATEGY

A strategy is like the mother of all successful ventures ever done. Without proper strategy, neither the business plan nor the startup can function productively. The mathematical calculations and the practical knowledge both suffice for a challenging and competitive strategy.

If the strategy lacks down in approach and the basic idea a venture wants to express, then quite inevitably the high hopes related to the venture would fall out of their places. Strategy metrics needed to be set up with sound meticulousness and perfection. For both small business plan and startup, the launch needs to impactful enough for your prospective customers to know you are a player in the market.

4) TECHNOLOGY

Technology set up is primarily intrinsic to a startup. Although the necessity of technology set up for a small business cannot be denied, in comparison to a startup it is quite obviously less in bulk size. For instance, a startup owner of a Top Web Design Company and Software Development essentially needs a huge technology set rather than a small-scale business owner.

In order to chase rapid growth and scalability, startups have to rely massively on technological setup. As far as, a small business is concerned there are quite a few out-of-the-box solutions that can easily keep them going without any bothering troubles. It's just a slight, marginal difference between both the ventures, but overall technology is pervasive in both of them.

5) TEAM AND IT’S MEMBERS

Now, this is crucial. A small business has a transparent idea about their employee strength. This is primarily because a business owner has to initially fix the employee strength size in order to operate within the company. With a contradictory picture to a small business member, a startup person has to be absolutely different in approach to his or her employees. The person has to be extremely motivating and must possess qualities of an effectual leader in order to keep the wheels of profit and success moving for his company.

6) GROWTH STATISTICS

Since their day of inception, small businesses start to collect proceeds. More than capturing a huge market for running their business, it is more important for them to have a free provincial area where they can focus centrally on their targeted audiences. On the other hand, a startup needs a considerable amount of time to crack the market with an exceptional service or product.

If the primary objective of stealing the customer’s interest and attention at its most initial stage is achieved, their, itself the startup takes a rocketing leap. Supposedly, if the services and the approach of an IT company proves its efficacy and high standards then it doesn't take time for that company to rank amongst the Top Web Design Company and Software Development.

7) LIFECYCLE OF THE COMPANY

According to a recent legit survey made on startups and businesses, ninety percent of startups close down in the first three years of its beginning. Such a sorry state of statistics clearly expresses the lack of sufficient knowledge and expertise required to own and run a startup successfully. The pictures of lifecycle statistics of small businesses are not impressive too. Thirty-percent of small businesses fails in their first three years, whereas 50% does the same in the first four years.

The overall picturesque of the entire situation projects a simple fact that whether be it a startup or a small business, in both the cases it takes up sufficient knowledge, expertise and confidence to make it a success story. Moreover, the perseverance and believe to work harder and introspecting where you are going wrong will definitely bring positive results one day.

For me, the winning strategy in any start-up business is, 'Think big but start small.'

- Carmen Busquets