Alright, bro. Take a seat, pour yourself a cup of coffee, and listen up. Today, we’re diving into a question that separates the wannabe moguls from the real legends: “How is a startup different from a small business?”
You’d think this is a subtle little distinction, like choosing between a bowtie and a skinny tie (wrong—always choose a regular-width tie, suit up). But nah, this is the kind of thing that can make or break your business street cred at a networking event. So, let’s break it down, Sahadat style—with suits, swagger, and the occasional high five.
The Vibe Check: Startups vs. Small Businesses
Let’s get one thing straight: both startups and small businesses are awesome in their own right. But they’re not the same beast. Imagine a startup as that dude who walks into the bar wearing sunglasses at night, claiming he’s about to change the world. Meanwhile, the small business owner is the guy behind the bar, already making money, pouring drinks, and probably owning the bar. You need both. But they play different games.
Startups Are Built to Scale. Small Businesses Are Built to Sustain.
Startup:
A startup isn’t just a company. It’s a mission. It’s that wild, chaotic energy of “Let’s disrupt the entire industry, make a billion dollars, and retire on a beach in Ibiza by 35.” Startups are designed to grow—fast. They’re trying to scale to the moon, maybe even Mars if Elon leaves some space.
Think Uber, Airbnb, or some dude in Brooklyn creating a dating app that matches people based on their Spotify playlists. High risk, high reward. Just how I like my laser tag battles.
Small Business:
A small business is your neighborhood legend. The barber who remembers your name. The bakery that makes the same cookies your grandma used to make (RIP Grandma and your dangerously delicious snickerdoodles). These businesses are built to last, to serve a loyal customer base, and to bring in steady revenue over time.
Startups Want Funding. Small Businesses Want Profit.
Startups:
Startups are like that friend who’s always dating for potential. They’re not always profitable, but they’re hoping their future is bright enough to attract investment. They’re looking for VCs, angel investors, or a magical unicorn known as a TechCrunch feature.
Startups will burn money faster than I burn through my dry cleaning budget. Why? Because they’re playing the long game—spending big now for (hopefully) massive returns later. It’s all about valuation, baby.
Small Businesses:
These guys are like, “Hey, I sell tacos. I make money. I pay bills. I go home and sleep like a legend.” They focus on revenue, cash flow, and keeping their doors open without needing to pitch their business to a bunch of investors in Patagonia vests.
They might get a loan or two, but their main investor is usually themselves—or their mom. (Hi, Mom.)
Startups Live in Uncertainty. Small Businesses Love a Good Plan.
Startups:
Startups are like dating a wild artist. They change direction, pivot, rebrand, and suddenly, the meditation app you invested in is now a crypto wallet for cats. It’s chaotic. It’s unpredictable. It’s kind of sexy.
Founders are out here testing ideas, failing fast, and launching MVPs (Minimum Viable Products). They embrace risk like I embrace a velvet blazer on New Year’s Eve.
Small Businesses:
These folks are more like dating an accountant—solid, dependable, and great with spreadsheets. They know what works and they stick to it. They follow business plans, budget tightly, and focus on consistency. They’re in it for the long haul, and you know what? That’s admirable. Consistency is what turns “awesome” into “legendary.”
Culture: Hoodies vs. Aprons (or Suits, if You’re Me)
Startups:
The startup culture is like Burning Man meets Wall Street. It’s open offices, bean bag chairs, 80-hour work weeks, and a CEO who plays ping pong with interns at midnight. The dress code? Hoodies, jeans, and an unhealthy obsession with standing desks.
Small Businesses:
Here, it’s aprons, name tags, and polos with embroidered logos. The vibe is professional, local, and hands-on. It’s less about hustle porn and more about showing up for the community every single day. Think small-town MVP energy.
And me? I’m rocking the suit in both situations, obviously.
Exit Strategy: IPO vs. Legacy
Startups:
The endgame for a startup? Exit. IPO, acquisition, or being featured on Shark Tank and getting a nod from Mr. Wonderful. They want to sell, cash out, and maybe go start another startup because apparently, they don’t like sleep.
Startups are designed with a finish line in mind—either you make it big, or you flame out spectacularly. Both make for a good story. And you know I love a good story.
Small Businesses:
The goal here isn’t to exit. It’s to keep it running. Maybe pass it on to your kids. Maybe open another location. It’s about building something that lasts. It’s legacy. And as someone who has signed “Best Man” in more weddings than I can count—legacy matters.
Final Thought From the Legendary One
Let’s be real—both startups and small businesses are awesome. One is the bold adventurer blazing through uncharted territory with a flamethrower and a dream.
The other is the wise master who’s been slinging sushi for 20 years and still has a line out the door. One’s trying to change the world. The other is changing their community.
But here’s the thing… You don’t have to pick just one. Your startup can have the heart of a small business. And your small business can dream like a startup. Just like how I wear a suit but think like a rockstar.
You just have to believe in the mission, play the long game when needed, and most importantly, be legendary doing it.
So whether you’re pitching your startup in a WeWork with no AC or running a bakery that makes cupcakes so good they make grown men cry—own it. Be bold. Be brilliant. And always…
Suit up.
Sahadat out. 🕶️
(Yes, this blog post was brought to you by my personal brand of cologne: “Disruption & Desire.”)