Main Differences Between a Startup and a Small Business

There are many differences between startups and small businesses. One of the biggest and most obvious is in the type of product that they are developing. Smaller startups usually begin with an idea for a product to sell to customers. However, there are startups that have no product yet, but one very attractive concept. These businesses usually look more like a technology company than a service business.

As technology has become more involved in every aspect of life, there have been more similarities among startups as well. But there are some clear differences between startups and small businesses that should be considered. Some of these differences between startups and small businesses are more about the type of product that is being developed. Here are some examples:

Service or product.

This is the biggest example of the differences between startups and small businesses. While the two have many common things, they also have some clear differences. A service startup will usually focus on providing a high-quality and reliable product or service, while a small business will often be focused on developing new products that can be used by other people. Service businesses also usually require more investment capital than do startups, so it is a challenge for them to find customers and raise money.

Leadership style.

While both startups and small businesses are led by leaders, there are some key differences between the two that are often misunderstood. One of the biggest differences between the two is that the leaders of startups are usually much younger and don’t have a long track record in business, whereas the leadership style of a small business is more mature. Because of this, the type of leadership style that a startup needs can be much different than that of a traditional small business.

a girl launching online business

Product range.

There are many similarities between startups and small businesses, but there are also some key differences as well. Both have products or services that are unique or offer extraordinary convenience to their customers. However, the range of products or services that are offered by a startup may be much smaller than that of a small business.

Market orientation.

Small businesses often try to sell their products or services in a very traditional way, which doesn’t always work for a startup. It’s important for a startup to realize that there is a market for what they are trying to offer and to take that market share through innovation. Unlike large companies, startups aren’t concerned with brand recognition, long-term profitability, or being “innovative.” They are more interested in first offering something new and then build from there.

Ease of use.

This is closely related to ease of product or service design. A startup can focus on getting their product or service to market faster and more efficiently, and perhaps do away with some features or add-ons that they find cumbersome or just not that important to their customers. On the other hand, small businesses tend to put a great deal of emphasis on customer satisfaction, so that they receive the value and satisfaction that they deserve and expect. Also, startups can be run from home.

In short

Both startups and small businesses face significant challenges in their early days. For startups, this usually means fewer resources and fewer customers and can indicate the potential for great success as a startup. But for small businesses, these usually mean a limited ability to compete with larger corporations and a lack of venture capital and expertise in marketing or product creation. The key differences between a startup and a small business make for a great discussion topic amongst business owners!

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How Important Is Employee Satisfaction in a Small Business?

employee

The first thing you need to understand is the fact that keeping your employees satisfied tends to be more than just your moral duty. There are so many actual benefits from investing in employee satisfaction in a small business, ranging from talent attraction and retention, reputation boost (for both you and the enterprise) to the inevitable productivity boost. With that in mind and without further ado, here’s how and why employee satisfaction is important in a small business.

A boost to employee retention

Every employee is an asset. Think about it, you make an investment to screen them, hire them, train them and then spend countless hours and effort in order to make them gain the proficiency level they need in order to work in that particular spot. Once this is all over, they need to work for you for a certain period of time just in order for you to reach your break-even point, let alone profit from them. Having them leave too soon results in a direct loss in ROI. Employee satisfaction is, therefore, crucial in boosting employee retention.

Greater productivity

productive

There’s a statistic that claims that a happy employee works 12 percent harder than their less satisfied colleagues. This means that by increasing employee satisfaction, you would put yourself in a position where you drastically increase the productivity within your enterprise with minimal investment. This is particularly handy for small businesses, seeing as how it would allow their small staff to outperform their much larger counterparts. Keep in mind, nonetheless, that sometimes you need to balance between the investment you make in the productivity and the return that you get.

A boost to your own reputation

The next thing you need to take into consideration is your own reputation. You see, as the head of a small enterprise, all of its successes and failures will be attributed directly to you. This is why you need to worry about your personal brand, your own reputation. First of all, you need to treat everyone with respect. This means both addressing every single one of your employees as an equal and honoring your end of the bargain. Provide them with all the necessary benefits but, most importantly, always pay them on time. With the help of personalized payroll cards, this will become so much easier, which is why this is an option that you might want to choose.          

Brand image

Another thing worth bearing in mind is the fact that every one of your employees is a brand ambassador and, as such, they are directly responsible for the image of your company. When hiring new people, they’ll be the ones recommending new hires amongst their friends and former colleagues. If they’re dissatisfied with how they’re treated in the workplace, chances are that they will not do such a thing or, at least, not recommend your business the way in which you would like them to. Also, the word of how you treat your employees has a particular way of spreading.

Lower absenteeism

work

One of the biggest productivity killers in the modern workplace is high absenteeism. Sure, people don’t show up to work when they’re sick or have some personal issues, however, people who are dissatisfied with the way things are in the office might just keep looking for excuses not to show up. Sure, it hurts their paycheck but it hurts them so much more to just come to work. By lowering discontent in the office, you will also lower the absenteeism.

Conclusion

The very last thing you need to take into consideration is the importance of employee satisfaction in a small business on a personal level, which might inspire some and encourage others. By feeling great in their workplace, they might feel a sense of pride that comes from being in your employ, even develop a feeling of partial ownership. This alone can help them outperform your expectations and be ready to take that extra mile even when no one expects them to do so. 

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