What is the difference between business creation and business management?
2 min readBusiness creation and business management are two distinct phases in the lifecycle of a company, each with its own set of goals, activities, and challenges. Here are the key differences between these two stages:
- Business Creation:
- Definition: Business creation, often referred to as the startup phase, is the initial stage where you conceptualize, establish, and launch a new business. It involves transforming an idea or opportunity into a functioning entity.
- Key Activities: In the business creation phase, you focus on activities such as market research, business planning, securing financing, legal registration, product or service development, and building an initial customer base.
- Goals: The primary goal during business creation is to bring your business idea to life, create a minimum viable product, and establish a presence in the market. You aim to prove the viability of your concept.
- Challenges: Startups often face challenges related to uncertainty, limited resources, and the need to adapt quickly to market feedback. It’s a period of high risk and experimentation.
- Business Management:
- Definition: Business management is the ongoing process of operating and growing a established business. At this stage, the company is already operational, and the focus shifts to optimizing operations, sustaining growth, and ensuring profitability.
- Key Activities: Business management involves activities like day-to-day operations, marketing and sales, financial management, human resources, customer service, and strategic planning. It’s about executing the business plan and improving processes.
- Goals: The primary goals of business management are to maintain and increase profitability, enhance efficiency, expand market share, and build a sustainable, competitive business. The focus is on long-term success and stability.
- Challenges: Challenges in the management phase often include issues like scaling operations, managing a growing workforce, adapting to changing market conditions, and maintaining customer satisfaction. It’s a period of more structured and stable operations.
In summary, the main difference between business creation and business management is the stage of the business’s life cycle and the corresponding goals and activities. Business creation is about getting a new venture off the ground, testing the market, and establishing a foothold. Business management, on the other hand, is about maintaining and growing an established business, optimizing its operations, and achieving sustained success.
It’s important to note that these phases are not mutually exclusive, and the transition from creation to management is a natural progression for successful startups. Many entrepreneurs and business owners find that their roles and responsibilities evolve as their business matures, and they need to shift their focus from creation to management to ensure long-term success.
