Entrepreneurs that come from the corporate world sometimes try to apply the same principles of a corporate culture to a small business start-up, and that is completely ineffective and inappropriate. In a corporate culture, big salaries, huge marketing budgets, and numerous employees are often a part of the company landscape, and normal for everyday operations. That doesn’t work in a small business start-up. When launching a business, it is important to remain lean and conscious of every dollar spent. Marketing needs to be specific and justified, salaries should be withheld until the company can justify a pay check, and an owner is often the one wearing all the hats doing all the jobs.
When the business model focuses on lean management, customer development and bootstrapping rather than adopting a strategic/corporate management style, you will find a higher success rate and a healthier, productive company capable of making the long haul.