Have you ever wondered which type of business Facebook is?
Before we begin, It is important to note that there are two types of companies, SMEs and IDEs. SMEs(Small, Micro-enterprises) and IDEs(Innovation Driven Enterprises), and Facebook is the latter.
Explained: SMEs seek to solve a local problem; they likely will not have a global vision. They find local issues to solve, and they do it well. One such example is a tyre fitment centre near you.
IDEs, on the other hand, are more focused on global markets and may initially run at a loss.
The structure of the two is vastly different. Where a family or a small team can run SMEs, IDEs primarily require investors and stakeholders.
SMEs may not require innovation, but IDEs won’t survive without it. SMEs are much more stable, with lower possibilities of failure. IDEs are more expensive in the beginning and prone to failure, but they offer exponential growth when they succeed. Mostly due to their global intended objectives. So Facebook is obviously not your everyday Ice-cream shop.
Both types of companies are crucial for the economy. And each has its people. In both instances, and if well managed, both companies can generate millions yearly. However, IDEs may generate Billions!
It is worth noting that innovation is focused invention plus commercialisation. Innovation is not necessarily solely invention. Innovation is simply bringing an idea to market and finding ways to commercialise it. Invention may be broader, but in essence, its to bring about new products and services, but not necessarily monetising them.
Facebook is an innovator because it uses existing technologies in unique ways.
But Facebook is also an inventor! Invention is simply bringing forth a unique idea. And this, Facebook has done!
Whether you are building your first or tenth business, it is worth noting that the process does not have to be strenuous. You may be an innovator and never have to invent new tech. All the prominent Silicon Valley companies are innovators. Their big task was to fill a gap. So your job is to also fill the void. I am assuming that that is why you registered your company, to begin with.
Usually, SMEs run off the bat and require very little to keep them running. IDEs require much more, but they can also run off the bat; think of Facebook. Both can be exciting to run. And it may make sense to start with an SME whilst building your business credential, then jump onto an IDE.
At Selfli, we offer free tips and model generators to use to gain insight into your business. Everything is available to you through our homepage.
In the end, whether you want to build the next Facebook or just a small enterprise, we have the intel to offer you. The internet has changed so many things. Note, your technology may not necessarily be disruptive; that keyword is not everything. Your business may also be Incremental or Lateral, so ease the stress. Remember, it all depends on your situation.
Here are the major myths about entrepreneurs:
- It requires very high intelligence.
- It is an individualistic sport.
- You have to be born for it.
- Entrepreneurs love risk-taking.
- You have to exude charisma if you want to succeed.
- You have to be ill-disciplined.
None of them are entirely accurate. On the discipline matter, Running a business requires a ton of discipline. So disregard that notion.
Thanks for reading.
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