Since long business world has seen the only three types of company big, medium and small scale industries and owners always mention their companies under small, big and medium. Not only business world has these three categories but the government also has only these three types of companies.
As the business world evolved many new things comes in the light and one of the concept is Startup, which is becoming famous day by day and many people are starting startups and changing the business world rapidly.
Let’s take a look what startup is all about and how startup is changing the business world and what is the reason behind so any startups.
What is Startup?
The term Startup is gained popularity these days and more and more people are trying to become an entrepreneur and setting up the startup however there is no clear definition of the startup, still we try to write what is startup.
A small business founded by one or more entrepreneurs to develop unique and effective products and services to generate the business opportunity.
Some entrepreneurs develop the products and services to solve any specific problems in the businesses and in the society however solution is not obvious and success is not guaranteed, some startups taste the success and some startups don’t. Most of the startups failed due to many factors such as lack of money, not good products and services and many other things.
Many business experts think that startups are a passion and mentality of building the business model by innovating products and services to solve critical problems. Startup has to be designed in such a way that it must grow by the time; startup doesn’t only mean venture funding, newly founded but startup means growth and solve the crucial problems. Startups are different from other businesses is the purpose and the relation between products and it demand, startups always target the untapped market and they have the perfect strategy to scale their business in that market.
In a early stage startups have no or less revenue, only entrepreneurs know that have to develop, test and market, all this needs money. Some startups take the bank loans and some opt for venture funding and now a day’s government is also helping the startups to grow.
Types of Startups
There are many types of startups and every startup have a different purpose and different types of products and services, let’s take a look at the various types of the startups
- · Scalable Startup
From the very first day the founder of such startup believe that they will make big, unlinke small business entrepreneurs scalable startups doesn’t build just for living they build to make the change in the society and try to solve the critical problems.
Scalable startup requires capital for the aggressive business model and they attract the investors, entrepreneur’s hires the best and the brightest to get the optimum growth. Facebook, Linkedin are the best example of scalable startups.
- · Buyable Startups
Such startups are only building to get sold to big companies, many web and mobile startups are founded in last few years are being sold to many big companies. Entrepreneurs of such startups try to solve the bigger issue and not try to make it the billions dollar business and they want to sold their startup to big companies.
- · Large Business Startup
Big companies time to time launch the products because they know that due to high competition most of the products have a very short life, to sustain in the market companies launch the products. They mostly focus on innovation to give the new taste to adapt new technology and to beat the competition.
- · Small Business Startup
Startup always doesn’t need an innovation and funding, if you are starting any business with a very small scale is also considered as a startup. Businesses such as grocery store, travel agent, plumber etc. The main purpose of the small business startup is to earn the living.
- · Social Startup
Founders of social startup always ready to impact the society and always try to make this world a better place, they don’t want to create brand or market share or any kind of wealth, their motto is only to help the society in different ways.
Advantages of Startup
Many CEO and top management position executive leaving their jobs and starting their own business, there might be various reasons such as passion, advantages of startups and to learn something new. Advantages of Startup might be the biggest reason many people are leaving their high paying jobs and starting their own business.
- · Flexible
Startups are small are not formally structured, they keep on doing innovation and keep doing changing within the startups. They adapt new technology and new business model and they make changes as per the market conditions and this all is not possible in a bigger companies. The advantages of adapting new things make the startups more flexible.
- · Multitasking
Most of the startups start with a small team when team is small there is no fix responsibility for employees according to condition they have to perform the give task. If someone is into HR they can handle other department also and marketing person can take care of the technical side of the company. This helps in improving the multitasking within the employees.
- · Team Work
Startup always works in a small team where most of the people are like minded and follow the same kind of passion. If team is small group discussion will takes place and employees can share their idea and solution, this will add value to the startups and in the employees as well.
- · Personality
This is the most important advantages of the company; startups always have better and more accessible personality. The CEO of the company almost attends all the meeting and actively takes part in team meetings. The employees are freer to share and adapt the culture.
Startups culture is attracting any people in last few years, startup give you more freedom to use you skills and knowledge. High salaried executive are leaving their jobs are trying their hands in startups; they know startup are big and capable enough to attract the success.
There are many types of startups which has various purpose behind it however one thing is common in the startup is innovation and passion. Startups are continued to success all over the world and each and every country is adopting this big phenomena.
Try to find the ways to start something on your own and make the positive impact.