Startup vs Small Business. What’s the difference? - Startups 101

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(00:00:00) Introduction to Startups vs. Small Businesses

Not all businesses are designed to become multi-billion dollar enterprises like Airbnb or Slack.
Most businesses will not be the next Amazon, Facebook, or Twitter, nor will they raise significant venture capital.
There's a distinction between Silicon Valley-type startups (possibly becoming unicorns) and more modest small businesses.
Many small businesses incorrectly try to emulate the VC-funded growth model.
The term 'startup' can apply to both groups, but for clarity, the video differentiates them as distinct categories.

Slidebean began with ambitions to disrupt the presentation software market and to challenge PowerPoint.
Despite not becoming the market leader they hoped to be, Slidebean considers its multi-million-dollar revenue a success.
The experience suggests that founders should be realistic about their company's category and growth trajectory.

Service-based businesses with human employees likely won't scale as fast as tech startups and fit more into the small business category.
Businesses with software that can be used by millions without proportionally increasing staff might lean towards the startup category.
Understanding the potential market size is crucial to align with the type of business you're building.

Startup investors expect a 10x return and generally prefer exits via a business sale or IPO to recoup their investment quickly.
Knowing your business category is critical to avoid wasting time with the wrong type of investors.
Friends and family funding may be suitable for businesses that don't fit the high-growth startup model.

Having an executive co-founder with capital and a network may suit service companies better than pursuing startup investors.
It's possible to raise modest funds from personal connections for smaller ventures.
Mismatched growth expectations can lead to dissatisfaction among investors and pressure on the business.

Choose a business path you love, as it will consume a significant part of your life.
The reputation and identity you build with your business may stay with you indefinitely.
Slidebean offers a free product trial and availability of founder office hours for subscribers.