What is a "Startup" Anyway?

What is a "Startup" Anyway?

Everyone has a great idea. It’s that little spark you dream of turning into something big, something that helps people, something that makes a mark on the world.

So, you’re ready to start. But as you take your first steps, you run into some new words. You hear "new business" and "startup" used all the time. Do they really mean the same thing?

It’s a great question, and it’s easy to see why people might use them interchangeably. The word "startup" has become a popular way to describe all types of new businesses. But in the world of innovation and investment, it has a very specific meaning.

Two Kinds of Bakeries

Let’s imagine two people who each want to start a bakery.

The first is a baker whose great idea is to open a local shop on the corner. Their goal is to bake delicious bread, sell it to the neighbors, and make a profit to support themselves and their family. They are using a business model that has worked for centuries. This is a classic, wonderful new business.

The second is a baker whose great idea isn't to open a shop at all, but to create a new technology that delivers fresh, custom-baked bread to millions of homes, perfectly tailored to their unique tastes. They don't have a proven business model yet. They have a hypothesis—a big guess. Their main goal isn't consistent growth toward profit right now—it’s massive growth tomorrow.

Both bakers have great ideas that can turn into something big. And either one could be the most profitable in the end. But, the second baker’s business more clearly meets the definition of a startup.

The core difference is the goal of each baker. A small business executes a known plan for sustainable profit. A startup searches for a new plan for rapid growth. 

A Search for Fertile Ground

The best way of understanding a startup is as a temporary phase of an organization where founders search for a repeatable and scalable business model.

Your great idea is like a seed.

A traditional business owner plants a familiar seed (like a tomato) in familiar soil. They know exactly what to expect. And they can be very successful doing it.

A startup founder, however, has a mysterious new seed that nobody has ever seen. So they have to search for the perfect conditions to make it grow. They will test different types of soil (these are your customer groups), try different watering schedules (your product features), and see how much sunlight it needs (your marketing).

This "search" is a process of learning, testing, and sometimes, completely changing direction. It’s about finding that one special combination that will allow your great idea to grow into something big. 

Your Great Idea, Your Path

When you build a new business, you're following a map. When you launch a startup, you're drawing the map as you go.

Choosing the startup path is a conscious decision to pursue rapid growth, to embrace uncertainty, and to build something with the potential to change the world.

We know it can feel like there are a lot of things stopping you from turning that idea into reality. But you don’t have to do it alone. You bring the passion, and we’ll bring the tools. We think you can overcome anything standing in your way, with a little bit of help.

So, come on! Let’s get started on Solid Ground.

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