Have you ever wondered what a startup is? Currently, much is heard about this new business model that has been so successful and achieved high investments.
All this prominence, however, is justified. Since they have increasingly dominated the market, always with innovative proposals, a young spirit, and fully adapted to the trends of digital transformation.
Basically, anyone can give the initial kick to create a startup, of course, if the main requirements are met. They are very different, for example, from newly opened small businesses and a lot of that is related to the expectation they generate.
How about understanding more about startups and discovering why they have been so successful? We’ll talk quite a bit about it below!
What is a startup?
Startups are beginner companies, with a young approach and fully adapted to the digital model, a requirement that is so important nowadays. Although they are small, they bring innovative proposals, whether for products or services.
A very common doubt is in relation to the success of startups. Few people understand how they stand out so much, even just launched on the market, but there is an explanation for that.
The proposal of the startups is precisely generate impact through something new and with great possibilities for development. These are ideas with a good chance of success and, if they succeed, they have everything it takes to be leaders and big players in their markets.
This flashy start attracts the attention of investors, which is a crucial point when talking about startups.
Many entrepreneurs start these businesses in search of investment for their ideas. This is a very common practice for this type of company.
However, this financial contribution only occurs if the proposal is really differentiated, without any precedent in the market and with interesting prospects for longevity. This draws the attention of investors, who trust these new proposals.
Does the startup carry that label forever?
This is a common question for those who want to know what a startup is. However, this classification is only given to companies that have just been founded and will still have their activities proven in the market.
If market stability is achieved, obtaining recognition, naturally, it ceases to be a startup.since it reached its main objective.
What are the characteristics of a startup?
To understand what a startup is, it is essential to look at some fundamental characteristics of this type of company. They will help you better visualize the business model we are talking about and you will even be able to remember some that are already on the market.
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Startups are scalable, that is, they have ample room for growth, doing this without consequences for your operations.
This scalability is mainly due to being companies with native operations to the digital medium. Thus, your services and products can be delivered to more and more customers without requiring more effort or even mandatory investment.
This characteristic means that the same product or service can be offered on a large scale, without any type of limitation. For this, it is important that what the company offers is inflexible or adaptable.
The proposal is to multiply and reach more customers. Therefore, adaptations could hinder those goals.
Innovation is the main characteristic of startups. They bring services that were always necessary, but were never thought of until the moment the company comes to light.
The same happens with products, which serve as accurate solutions for the different demands of society. Innovating is the first step for a company that wants to launch itself as a startup.
For bringing something different to the market, these companies also do not have a well-defined direction when it comes to success.
Despite being solid proposals and with a great chance of having good results, there are no precedents that help to have a clearer perspective of the future.
Disruptive, startups break patterns normally used by other companies in the same segment. This comes through forms of customer service, collection rates and even in the mode of provision of services.
The proposal is precisely to run away from what the market offers, to stand out and have the necessary competitiveness.
This was the main characteristic observed in the early 2000s, in Silicon Valley, when the term startup began to be used to classify certain companies.
In most of the times, companies inserted in the context of the digital entrepreneur have their actions through the Web, dispensing physical points and the need to travel to attend and make any other request. Normally, they are 100% digital businesses.
What differentiates startups and small businesses?
In the search to know what a startup is, many people wonder about the difference between them and the small companies that are also launching in the market.
Despite being a very plausible question, there is a basic conceptual difference that makes startups really different: they bring innovation for a specific market.
If you open a hostel, for example, it is just one more model of accommodation establishment.
On the other hand, if you launch an application that connects people looking for a place to stay with those who want to rent their residence or a room, there is an innovative idea.
In addition to bringing something new and never seen before on the market, there is the fact that it is completely digital.
What companies that started as startups serve as good examples?
How about knowing some successful companies that fit into that classification? There is no better way to understand what a startup is!
Meet some world famous ones that you are probably already familiar with and have already come across advertisements or even use some of their services!
From the hospitality branch, Airbnb has made it possible for people from all over the world to open their homes to receive travelers. If you have an unoccupied property or an empty room, it is possible to host someone for a certain time, generating profits with that action.
The company acts completely digitally, through its application or through the website. The profit comes through the fees charged on each rental!
Despite being considered just an IT company, Uber has become one of the transportation giants. In the same Airbnb format, it connects private drivers to career-seeking passengers across town, anywhere in the world.
Its emergence generated great competition with taxis, giving the public one more option, which ended a monopoly of decades.
Sympla is a Brazilian company that has launched a platform aimed at those who want to hold and promote events. By means of its solution, anyone can take care of various stages of the organization.
The software allows you to sell tickets, manage confirmations and work on the entire control, all through the app and your web workspace.
At a time when illegal song download sites were being hunted down, Spotify came up with an accurate solution: a streaming platform, in which its users pay a monthly fee and have access to a gigantic selection of songs.
Thus, Spotify was consolidated and, despite winning several competitors, it continues to be the largest company in its segment.
How to start a startup?
A startup can be carried out by anyone, as long as the key steps to get started are followed. From the idea to the search for investments, all are essential. Get to know each of them better now!
have an innovative idea
Do you have any ideas that can work? If so, great! If not, it is not yet time to think about a startup. They revolve around innovative products and services.
If you usually have good reflections and you are attentive to the services that can work, sooner or later, incredible ideas will come to you. Stay tuned!
Start in testing phase
Every startup starts from a prototype phase, in which the business model is tested within your target audience, but in a small sample.
Launch this basic version (better known as the Minimum Viable Product) and see the results you get, while continuing to analyze public reaction about her.
Evaluate the possibility of moving forward
The testing phase will bring the answers you were looking for regarding the viability of your idea. If the business turned out to be reasonable and performed well at this early stage, that may be the hallmark you need to continue with your startup idea.
From these tests, it is also possible and important to make adaptations to reach the final model of your company.
Starting alone is always very difficult. Companies need different skills to get ahead, so you will surely have to turn to a partner, that is, a future partner.
Look for trusted people within your network who have skills complementary to yours. This guarantees the efficiency of your startup when it is launched on the market.
The attraction of investments is a fundamental part of the work of a startup. Large entrepreneurs, investment funds, and other companies generally have an interest in investing.
Present your idea in a strong way and keep an eye out for opportunities to have that input.
Now you know what a startup is and you can start putting your idea into practice! Keep an eye on the characteristics of these businesses so that your idea works well. Use the great successful companies as inspiration and go for your goals!
To begin with, we invite you to learn a little more about the subject. Find out what the concept of Lean Startup is and how it applies to a company. Enjoy it!