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Scaling is the key here. Startups are able to scale, whether at 5x, 10x, or 20x really doesn't matter. The point is that they can scale much faster than other types of businesses. This usually involves technology and automation, but not necessarily.

I like PG's "make something people want" It describes a successful startup. So successful startups make something that people want that they can scale tremendously. As swombat points out, big companies just can't keep making the magic happen, so by my definition they stop being a startup.




People dont know what they want. You can create markets.


The intention here is not that a person has some specific idea of what they want and then you make it, that's thinking of the test backwards. The intention is that when presented with something you have created, a person will want it. So yes, you can create markets. Or you can chase markets. It works either way, because it's the meeting of product with potential consumer that matters. Along those same lines, you might invent a cure for cancer, but if nobody sees it, you really haven't done much.




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