Startups

Posted by Super User

Building a business from the beginning was never an easy task and today it might be more difficult than ever, simply because there are a lot of competitors in every industry. Also, a lot of money is required for the initial investment and the risk of losing it all is very high. However, there is a trend that has been interesting to many new investors in the recent decades, called Startup Company, better known as simply Startup.

It is a high-risk business that features a service or product, aiming to fulfill a certain need amongst other elements in the marketplace. Since its existence is relatively recent, most of these businesses are technology oriented. Some of the best-known former startups are Airbnb, Uber, Snapchat, and Spotify. The success of these enterprises and their enormous expansion worldwide explains how effective startups can be and how far they can go if managed properly.

The beginning of the startup is usually initiated by an individual or a smaller group of people with an idea that targets one specific need. They have a vision of how to make something easier and more convenient than it is now and it has never happened before. The startups are usually funded by firms or private investors who believe in the idea of the inventors and they are willing to sponsor it. Once the startup is funded, it is ready for the launch, after which it can succeed or fail.

Startups and small businesses seem quite similar in case you don't know a lot about either. However, the key differences between them are that small business are more interactive in a small market, they appeal to a specific niche, locally. They are also funded by non-investors such as grants, loans or founder’s money. Small businesses are focused on long-term success and stability, while startups are far riskier. 

Startups are no longer startups when they are acquired by a large company, have a revenue over $20 million, have a company of over 80 employees, over five board members, when the founders sell their company shares.

As technology, Internet and everything related to these two are in constant and rapid growth, there are no signs of startups losing their popularity. Instead, it could be even more increased by new people with amazing ideas that can bring major differences to our everyday activities with new products and services that we couldn’t think about having before. 

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