When it comes to entrepreneurship, startups are always included. Even though they are widely talked about today, many people still don’t know what a startup is and its goals.
Since a startup consists of a company in its initial model, almost all of them are capable of engaging in innovative proposals and are therefore considered to have rapid growth potential. Understand from now on that it is a startup and its role in current entrepreneurship.
What this article covers:
What is a startup and its main concepts?
A startup is a business or company in the initial stage of business, this model carries a differentiated and very innovative proposal, which is why every startup is known to have great potential for growth. There are many areas that a startup can operate in and they often use technology in their business.
The term startup originates from Silicon Valley, California. This region is famous for being specialized in technology and innovations. Startups became famous around the world from the popularization of the internet. This time was responsible for the large flow of companies linked to the Internet on the stock exchange. Most of them managed to achieve their results and profits.
To be known as a startup, the business must follow some basic characteristics. The biggest one is following an innovative business model. In addition, the business has to be considered scalable, that is, being able to develop without increasing costs. She needs to increase her income without her expenses also growing.
Finally, a startup needs flexibility and adaptability. Every company to be a startup in fact needs to organize its processes with agility. Time is a determining factor.
What are the types of a startup?
After really knowing what a startup is, it is necessary to find out about the types of startups on the market. The three most popular types currently are: Small Business Startup, Scalable Startup and Large Company Startup.
The first type, Small Business Startup, is a start-up and largely family business model. The owner of a Small Business does not want to expand his business, but to provide comfort for his family members. Even though it is a small and family business model, this type of startup does not fail to move the local economy.
Now, companies that thrive on growth and want to attract investor attention are the Scalable Startup🇧🇷 This model demands a vision of growth as its main characteristic. Entrepreneurs included in a Scalable are looking for expansion relentlessly.
In the Large Company model, its main focus is innovation. They are not created just for growth or improvement, but to make the business more and more unique due to its innovations.
All companies within this model start with completely innovative and revolutionary proposals, and that is how they are known.
There are other types of startups, but these three are the best known and used so far. To create a successful startup it is necessary to be aware of its models and characteristics.
How do startup entrepreneurship strategies work?
Startups are looking for entrepreneurship strategies that are different from those used by regular companies. The main one is to sell something totally innovative to the market, so they manage to develop quickly and achieve their goals.
Startups also follow a different investment model, most relying on capital from their investors. For this reason, startup owners rely on the influence of many of their investors on small business decisions.
To get the money in, the founders of a startup need good planning and must have creativity, a sense of urgency and a well-defined business plan.
When does a company stop being a startup?
A startup only ceases to be considered one when its business manages to solidify itself with the beginning of revenue, that is, from the period in which this business model becomes fully sustainable, scalable and a source of high profits.
If this takes time to happen, the startup needs to reinvent its main idea so that it does not run the risk of premature bankruptcy. Therefore, every startup needs to have management to deal with the unpredictability of the market.
To be a good startup founder, you need to know how to deal with market changes flexibly and use all possible business management tools.