Difference Between a Startup and a Business

startup is defined as a business with a new and untested product or service, that which potentially has a huge market. Startups became possible with the Internet, when such huge markets became reachable. Suddenly, people made a career of creating startups and selling them. Some stick with the business, but are willing to reduce their stake in it.

From the book, "The Lean Startup," by Eric Ries, the differences between a startup and a business are described this way:

1. Startups do something new and untested. They start with some core assumptions, and then they validate the assumptions and build sustainable businesses. They go through the process of initially developing a minimum viable product (MVP) and constinuously refining the product based on customer feedbacks.

2. Startups usually have to pivot maybe a couple of time before becoming successful, i.e. they make fundamental changes in course to get the right product and business model.

3. Startups need an engine of growth that help them scale - either a sticky one, a viral one or a paid one.