In the 21st century, everyone is paying attention to startups. We are surrounded by startups, and if you follow the news, you must have seen the image of a startup that a group has launched in a garage based on innovative business strategies. But this is just an artistic look at startups.
A real startup has a completely different meaning than the startup you have in mind.
What is startup?
Start-ups are a high-growth business structure that benefits from transformational innovation and has been created to solve problems by offering new offers in uncertain conditions.
A startup is a business that:
- Grows fast
- Transforms the market or industry,
- Solves a problem,
- And it works under extremely uncertain conditions.
Many entrepreneurs and business leaders define the startup world as a culture and mindset for building a business based on an innovative idea to solve important problems.
Paul Graham, the founder of Y Combinator, has simplified the definition of a startup and linked it to growth. According to him:
The startup is a company designed for rapid growth. A start-up does not in itself make you a startup company. Nor does a startup need to work in technology, or invest heavily, or have some sort of “output.” The only basic thing is growth. Everything else we associate with startups comes from growth.
Therefore, the key points to consider when classifying a business as a startup:
Growth
The term startup is intended for companies that are growing rapidly. If all companies were basically alike, but some grew very fast due to the luck or effort of their founders, we would not need a single word and could only talk about very successful or less successful companies. In fact, the DNA of startups is different from other businesses. Google is not a hairdresser whose founders are unusually lucky and hardworking. Google was different from the beginning. – Paul Graham
What sets startups apart from other businesses is the relationship between product and demand. These start-ups have products that target largely untapped markets. Startup entrepreneurs have a complete strategy for creating the products that the market wants. This causes them to grow rapidly.
Trade structure
A startup is a registered business entity. Any unregistered entity is merely a work in progress or an idea. A startup in any case has an organizational structure, its employees have salaries, and shares are divided among shareholders.
Transformational innovation
A new business is a startup if it can find a new source of profitability for its customers through its product or service. However, this groundbreaking innovation is not limited to the product or service offered. Many startups are not innovative in their products at all, but
- They procure their goods through various innovative channels (eg e-commerce)
- They design a similar business model with added value
- They become the aggregator of existing products and services
- Target new markets with existing products or services
Unreliability
Innovation is a risky process. There are many internal and external factors that affect the fate of startups. Because most startups do not base their business model on market demand, their survival is uncertain in the long run.
Problem Solving
What separates a startup from a small business is the context in which innovation takes place. The problem can exist or be induced. Do you remember how convincing people about the dangers of tap water increased the demand for bottled drinking water (mineral water)?
What is a startup? The best way to determine if a company is a startup is to compare it to a non-startup. As mentioned, we have found a practical way to categorize a business as a startup. This category includes:
Business model
Startups have unusual and new business models. Demand for their product is still in its infancy, and their business model is evolving as there is room for new revenue.
There are many new companies starting with commercial copied models. These companies are not classified as startups.
the product
The product or service that startups trade is still in its infancy or infancy. Many start-ups make some of the products on the market or deal with them. These companies are not considered startups unless they innovate in other business channels.
Number of Employees
A startup usually does not have more than 100 employees. But this aspect can not be used just to categorize jobs as a startup.
Duration of activity
This is one of the most controversial features of a startup. According to the Indian government, if the company has been active for more than 5 years, it is no longer a startup.
Income
If a startup has reached a point where its turnover is more than $ 50 million, it is no longer a startup.
7 Tricks to Start a Successful Startup (2021)
Now is the time for entrepreneurship more than ever. Given the unprecedented number of new jobs we have launched in 2020, we are riding a new wave. Entrepreneurs are responding to new demands that have emerged during the pandemic, and soon, life-saving vaccines may provide another reason to continue this amazing trend.
Hungry investors are new prospects and governments are likely to support them. How to ride the 2021 wave? Here are the basic steps entrepreneurs need to take this year.
Number 1: Be vigilant
Consciousness is exactly what it seems. Awareness may begin with a vague idea or inspiration that you have recently read or heard. You realize that you have a new role in the world and you start imagining your next move.
Number 2: Have a constructive mindset
To test your idea, you must have a prototype. Make an initial offer and see if anyone pays for it. This approach is related to the creative archetype. No startup can succeed without a creator, without rapid prototyping and repetition of the mentality that must be implemented in the team.
Unsuccessful startups almost always lack creative people. Creators are like fast, practical scientists. They speed up learning by quickly testing one or two elements at a time. You can experiment a lot more than you think – sales offer, even ads that get noticed on Facebook.
Number 3: Be ready for change
Entrepreneurs are practical. Change is where thought becomes action. You may need to team up with a co-worker on a project or guide an entrepreneur or new company. You need to work actively together, even if you are not sure where the result will lead.
This is the stage where you should look for leaders and mentors who can guide you. A change occurs where you start to take seriously the idea that woke you up. Another type of change: Knowing and believing that you can come up with a new concept or idea. You need to be confident that you can learn from failure.
Number 4: Be
Entrepreneurs are usually a combination of different types of archetypes. But there is an archetype that we all need to learn: search and deconstruction
These entrepreneurs have a “beginner mind” – and this is essential in the ideation phase. They are especially adept at disrupting the market or tracking down new elements for innovation. Not surprisingly, these people have launched Airbnb and Uber. Developing your own comprehension and analysis skills is the key to entrepreneurship.
Number 5: Check your location
Location is especially important during a pandemic. Entrepreneurs are masters at taking the initiative in their neighborhood, whether in San Francisco, London, Lisbon, or digital networks. It is a matter of joining or creating an association, and we recommend that you participate in an ecosystem as much as possible.
With vaccine distribution, one of the most important decisions you make is choosing the city or town where you will grow, because face-to-face meetings will be held again, and this will help your entrepreneurial growth. Nothing affects the continuation of work as much as human interaction. Try to welcome global opportunities for valuable partnerships and collaborations online.
Number 6: Be a leader
As entrepreneurs’ self-confidence grows, they learn how to use a multidimensional strategy. Growth ultimately often comes down to team dynamism, talent, passion, and skill, and setting a broader perspective.
We call this archetype a leader, one who seeks great and important models and is constantly looking for more structural blocks to raise his evolving platform. Ben Silberman of Pinterest and Mark Benioff of Salesforce are great examples. Almost any entrepreneur and startup can benefit from comprehensive and growth-focused techniques. You might say, a special platform is needed for this.
Number 7: Start your own business
Entrepreneurs do not panic and do not procrastinate. Those who prefer hibernation to activity and fear to courage will miss out on opportunities to attract attention in new markets and customers.
Benefit those who start their own business and learn from real interactions with customers while working. Vaccines promise to control the disease soon, and entrepreneurs with the right mindset, team, and strategies will be prepared for anything that may happen in the future.
2021 will be a great time to start a business, especially after the end of the Corona Pandemic.
