A startup is an emotional roller coaster that can result in major failure or success, after which the total bank account of a person can increase or decrease dramatically.
The person behind the startup is the founder, a person who is often very intelligent, a bit crazy who thinks normal work 9-5 is boring and tricked into believing that he can change the world by working tirelessly in front of a computer screen. This endless work is known to have eroded several years from the life of a founder. But it can be very beneficial both emotionally and financially for those who pursue it.
Definition of StartupThere may not be the most correct understanding of a startup. Many startup founders believe that startup is a state of mind. That's not a word that is limited by the number of years in the business, or the amount of income that the business earns.
Warby Parker Neil Blumenthal defines a startup as a company that works to solve problems where the solution is unclear and success is not guaranteed.
According to Steve Blank, a startup is "a temporary organization designed to look for repeatable and scalable business models", while small businesses operate according to a fixed business model. While the popular understanding of startup is "A technology company with less than 100 people".
Startup FunctionFor startup founders this concept means the following three main functions:
- To provide a vision of a product with a series of characteristics
- To create a series of views of business models regarding customers, distribution, and corporate finance.
- To understand whether the model is correct, based on customer behaviour, as predicted by your model.
Types of StartupSteve Blank divides startups into six types. Following is an explanation of the types of startups.
1. Lifestyle StartupLifestyle entrepreneurs live their chosen life while working for anyone but themselves. In Silicon Valley, such professionals are freelancers or web designers, who like their work because of passion.
2. Small Business StartupThey are, who run their own businesses to feed the family. Small business entrepreneurship is not designed to develop.
3. Scalable startupGoogle, Uber, Facebook, Twitter are just the latest examples of startups that can be scaled. From the beginning, the founders believed that they would change the world.
Such startups employ the best and the brightest. They are always looking for repeatable and measurable business models. When they found it, they began looking for more venture capital to improve their business. Often startup groups that can be scaled together in innovation groups (Silicon Valley, Shanghai, New York, Boston, Israel, etc.)