We often hear the word “Start-up” in our daily life. But have we ever understood the full implication of that word? Most of us don’t. A Start-up is a venture undertaken by a team of entrepreneurs or a single entrepreneur to market a product or a service that is new to the market. Sometimes, it can also be product or service that the entrepreneurs feel has an inferior marketing strategy or quality.
Start-up is often confused with the term “Small Business.” Start-Ups have specific attributes that unique to them.
- Market Need:
Most of the start-ups offer an innovative product or service to that part of the market that is untapped. Start-up entrepreneurs have the capability of devising the perfect strategy that will pull the customers and investors towards them and cash in on the potential of the consumers. This particular attribute is also a trigger for fast growth.
As per the quote of Michael Arrington, founder, and co-editor of TechCrunch:
“The best startups generally come from somebody needing to scratch an itch.”
- Has a structure:
A start-up is registered business entity with employees on its payroll, and it has a structure no matter its shape. They also have shares and shareholders.
- Out of the box thinking:
A start-up provides a solution or product that gives a new angle of use to its end-users. Sometimes, they also offer an innovative solution or delivery for an existing product or add value to the product.
“You just have to pay attention to what people need and what has not been done.”-Russell Simmons, founder of Def Jam
- Solution provider:
The most distinguishing feature of a start-up is that it presents a solution. This attribute separates the Start-ups from the small businesses.
- Business model:
They have an unconventional model and it is also a work-in-progress. The models keep fluctuating until they attain the end goal. The product is also at a nascent stage.
The essentiality of any start-up is growth, but they also face a problem of catching the attention of the investor as they also face the risk of flunking the business. The most important thing about Start-up is that the entrepreneur should not be afraid of the challenges and should not indulge in premature scaling.
Hope this post was helpful and feel free to post your thoughts and comments below. Looking forward to it and
As usual Namaste, Au Revoir, Saynora, and Vanakkam to my readers out there where ever you are and whoever you are.