What is Startup?

  •                                 Jun 02 ,2019

A startup definition generally referred to a small business that is in its initial stage of operations. Startups are founded by a group of people or in some cases by a single person where they aim to provide a product or a service. In recent times, Startup is no longer an off-the-wall topic since there are many startups in our country.

What is Startup?

Lean startup is a business and product development process that tries to shorten product development cycles and quickly determine whether a given business model is viable by combining business hypothesis-driven experimentation, iterative product releases, and validated learning.

A startup is a business or project started by a startups founder or entrepreneur with the goal of finding, developing, and validating a scalable business model. While entrepreneurship encompasses all new firms, including self-employment and business credit with no plans to register, startups refer to businesses with plans to expand beyond the founder’s single location. Startups endure a lot of uncertainty and failure at first, yet a small percentage of them go on to be successful and important.

There are basically six types of startups :

  • Small business startups

  • Buyable startups

  • Scalable startups

  • Offshoot startups

  • Social startups

  • Lifestyle startups 

All six types of startups need to take into consideration a lot of things to reach their product or service to the clients. From planning, designing, funding to research there are many other meticulous things that help businesses to grow rapidly. There are certain principles that companies should follow from their starting phase to the final phase. These principles have a huge impact on companies. The considerations are :

Market validation

Market validation is the most important key factor to know the demand for startup owners in the market. Good knowledge of market demand makes it’s easy to develop a product or service which is customer-centric for every company startup. Market validation can be done via survey, email response, or Data Analysis.

Investment

The initial investment or startup capital for your business plans is the most important factor. Generally, almost all business starts with a small amount of investment and secure funding and the investment grows after the business starts to grow. In recent times, there are various companies willing to invest in small companies or successful people if impressed by the idea also invest in small startups.

An angel investor is a person who invests in a firm or a business startup in exchange for convertible debt or equity in the company. Angel investors typically fund start-ups in their early stages, when most other investors are hesitant to back them.

Venture Capital 

venture capitalists are equity investors who invest in high-growth firms in exchange for a share of the company’s ownership. This might include sponsoring new projects or assisting small businesses that want to grow but don’t have access to the stock market.

Equity crowdfunding is the online offering of private company securities for investment to a group of people, and it is thus a part of the capital markets. Because equity crowdfunding is an investment in a business, it is frequently governed by securities and financial regulations.

Using a credit card to fund your startup is quick, easy, and flexible. One of the biggest advantages of utilizing credit is that the appropriate card may make it as good as cash.

Partnership

Startup companies need to form a partnership with other companies to grow their business. Business partner aids to showcase the product or service to other customers. A business partnership with other companies helps to become successful.

Startups tend to be are more laid-back by nature, making the workplace more communal through flexible hours, more employee engagement, and flexibility. Startups are also more likely to offer superior workplace advantages, such as child care, free food, and shorter workweeks.

Good Decision Making

Good decisions in uncertainty may save a lot of money. It is not always that companies make a profit every year and customers become happy with their products.

Entrepreneurs should start digital marketing as soon as the company starts. Digital marketing must be an element of the startup’s business plan from the outset. 

To be successful, the company must seek out new clients, produce leads, and convert leads into revenue. Even small businesses require a business strategy. 

This is an issue that a serial entrepreneur faces on a regular basis. They delegate the duty of running a firm once it is formed and move on to other enterprises. They might even sell their previous firms.

Learn from Failures

According to a survey, about 90% of the startups fail in history of startups. These failures may be because of many factors like lack of Customer satisfaction with the product or service. Funding problems, lack of proper planning, rival companies, and lack of motivation from staff or workers are also some of the examples.

A startup incubator is typically a non-profit organization run by both private and public companies. A startup incubator’s only objective is to assist entrepreneurs in growing their businesses. 

Facing failure full-on and learning from your mistakes is the way to go. Recognize that every thought that comes to mind isn’t going to work. After a failure, take some time to gather your thoughts and figure out what went wrong. 

While many obstacles may come during the initial stage, the above factors chiefly decide the future of the company.   

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