Steve Blank is a serial entrepreneur and taught this very informative entrepreneurship lecture Democratization of Entrepreneurship at the Stanford Graduate School of Business. He says that startups are business that are looking for business models that can scale into large companies. Startup, however, are not small versions of large companies. They operate in a completely different way than large company so large company approach usually cause startups to fail. He describe a method to develop and iterate business models, which is available in the book Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers by Alexander Osterwalder.