Differences between Traditional Business and Start-ups!

By Aparna RoyIf we are asked to define a start-up and a traditional business, we can definitely give a well-framed definition of both the terms. But if asked to differentiate between the two, we might not be able to it instantly point out the differences. The reason is with so many patterns of business emerging these days, many people often tend to get confused with the concepts and functionalism.

Well, a short briefing about the difference between a start-up and traditional business can be of great help in understanding both the terms.

Traditional business:
Talking about traditional business, its concept is much wider than that of a lean start-up. In traditional business, the postulations of a company are huge and are ratified with the objective to makes substantial gains and support. These are basically the small stores, restaurants or agencies which offers services to the customers in exchange for shekels.

• The basic intention of planning the content of an executive summary business is to develop trust and relation with the investors, customers, business partners and financial institutions. In this summary, the traditional business encompasses all basic details about the company such as in what the company deals with, where and when it was founded, what services it offers and so and so forth.

• As every other traditional business also aims at making profits. But the difference such businesses aim for engendering profits solely for the owners or the operators only. And so most of the times they land up making more money than what they have invested.

• The investment is high in traditional business. It includes the cost of infrastructures, products, staffs, stocks and other maintenances.
A traditional businessperson is bound to meet these requirements for the smooth running of the enterprise.

• One drawback that traditional business suffers is that it has a very low scope of build-out. Apart from this, it is also time-constrained; such enterprises are to follow a particular time for operating.

• But the best thing about this business is that it mints money from the very first day itself.


We are no new to the concept of start-up. The very word has set up the entire picture of its existence and functionality in your mind, didn’t it? Start-up can be defined as a scion that is nurtured and launched in the market by an innovative and aspiring mind, with the intention to mark footprints in the market as an entrepreneur.

When compared to traditional business, startups encounter a different scenario altogether.

• The most fascinating fact about a start-up is that it is not subjected to any hard and fast rules like a traditional business. It enjoys full flexibility in terms of employees, infrastructure, products and services, etc.

• Start-ups do not make money from the very first day of its initiation. The entrepreneur has to work towards the growth and development of the company in terms of services, users and clients.

• Start-ups usually look for external funds. Since they do not know the exact investment that they’ll have to underwrite in future, they have to keep someone in confidence to tackle some financial crunch.

• Start-ups are bestowed with technology. Yes, the best thing about a start-up is that it can incorporate technology to enhance its functionality. This enables the clients and customers with benefits of technology and innovation.

• The sole motif of start-ups is to create disruption in the market. And fortunately, they get ample scopes to expand and grow their business in any sphere they want.

However, both the business have got their own pros and cons. It is on an individual on what he/she wants to venture. At least these points shall help a person understand the difference and take an initiative.