Many are engaged in creating or even starting their own startups in tech centers like Silicon Valley or any startup hub. Mostly the trendiest term today seems to be a “startup”.
Although the popular definition of a startup as a “tech company with less than one hundred people” is not incorrect, the whole philosophy is not explained.
Remember the days when a great idea was all you had to launch a successful startup. If you had a brilliant idea, it would follow good luck in the form of angel investors and venture funds willing to take you a chance.
Today, only one good idea is simply not enough in this innovation-hungry era. To that end, you need execution, and custom business apps to make a big difference. Not only do they boost operational performance, but apps also make it much easier for startups to keep track of and successfully execute their vision for the company.
The Definition of a Startup
Investors have treated startups as small businesses for several years. It was a real problem as a startup, small firms, and large corporations have a significant conceptual and organizational difference.
The startup is a “temporary organization designed to search for a repeatable and scalable business model” – Startup guru Steve Blank
This concept refers to the following three main functions for the startup founder:
- To provide a vision for a product with a set of characteristics.
- Create a series of business model scenarios for the customers, distributions, and finance of the company.
- Understand, if the model is the right one, based on consumer behavior, as the model predicts.
Different Types of Startups
There are six major types of startups that entrepreneurs tend to jump into. Throw an intuitive business app into the mix, and you’ll significantly multiply the growth potential. Here are the six types of startups that can exponentially benefit from a business app.
Lifestyle entrepreneurs live their favorite lives while working for no one but themselves. In Silicon Valley, these professionals are freelance programmers or web designers who enjoy their jobs because of their passion.
2.Small Business Startups
Small business startups are small companies started by normal people you might meet on the streets. They don’t want to be big, but they want to make a decent living for their family and friends. That said, technology plays an integral role in any sector, no matter how big or small.
If you’re a small company, you probably won’t need a company or consumer app (unless you want to expand). However, you will need a responsive specialized website that has the ability to navigate, order, and track the products/services that the customer may want to purchase. In these cases, a shopping cart with many options for online payments helps greatly boost sales.
3.Scalable Startup: Born to be Big
Google, Uber, Facebook, Twitter are just some of the latest examples of scalable startups. From the very beginning, the founders assume that the future is going to change. More often than not, are always in the tech niche.
That’s because, as the name suggests, they are scalable, i.e. they have the ability to keep rising their revenue while maintaining their incremental costs to a minimum.
Not only do they begin to make a living out of them, but also to see them make a difference in the world and hope that rich investors will realize the potential of their businesses and probably help them to develop. The concepts with which these startups are formed are usually powerful. This is exactly why Venture Capitalists and investors invest only in technology start-ups and never in service start-ups.
For those who love earning money, this sort of startup is using it then going back to redo business and get some other money again. These startups include businesses such as developing websites and apps. When their values are appreciated, the owners start the business with little capital, develop them, and then sell them off to say IT firms. Such entrepreneurs go away with several thousand or even millions of dollars, but they hardly get to the mark of the billion dollars.
Their goal is not to create a billion-dollar company, but to sell for $5-$50 M to a bigger company.
5.Large Company Startups
Large companies are of a finite lifetime. Changes in consumer preferences, new technologies, legislation issues, new competitors generate pressure, pushing major corporations to produce new creative products for new consumers in new markets ( e.g. Google and Android).
They are passionate about making an impact and drive to that. Unlike scalable startups, though, their mission is to make the world a better place, not for the sake of wealth but for an idea.
The startup is a passion focused on an idea, with a drive. It is going through countless difficulties in finding a way to succeed-even breaking barriers that are impossible to climb. But, really, somewhere and somehow ends this crazy journey.
How is a Startup Founded?
Most likely a startup and a small business start from a pure idea, either with the money of their own founder or friends/family, or a bank loan. A profitable startup would later obtain funding from angel investors, venture capital, or IPOs. An investor earns a share of the company with every investment and becomes the startup’s co-owner.
What are the most common industries for startups?
To summarize, here is a quick breakdown of the most common types of startups based on industry. Although the majority of them are in the technology sector, there are certainly startup opportunities in more “nontraditional” fields as well.
- Software (SaaS) and technology
- Marketing and advertising
- Real estate
- Environmental and energy
- Retail and eCommerce
- Blockchain and cryptocurrencies
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