A startup is an organization or venture started by a business visionary to look for, adequately create, and approve an adaptable plan of action. A startup is a business structure powered by disruptive innovation, established to solve a problem by transmitting a new product or service under conditions of extreme uncertainty. Many entrepreneurs and renowned business magnates define startup as a culture and a mentality of building a business upon an innovative idea to figure out critical pain points.
Gone are the days when a tremendous idea was all that you needed to launch a successful startup. If you have a startup idea, good luck would follow in the form of angel investors and business funds willing to take a chance on you. But before that you need to know the types of startups. There should be understanding of the basic types of startup ventures, which will help in finding relevant ideas.
Basic Types of Startup Ventures
Here are the some of the types of startups that entrepreneurs tend to jump into.
Small businesses are the greatly popular type of startups and make up the crucial part of any country’s economy. On the one hand, they do not require too much property and investment and therefore are easier to start up; yet on the other hand, they do not usually bring a lot of profit and serve their owners to cater for their families.
When we understand startups that bring billion profits and hit all headlines overnight, we think of scalable startups: Google, Twitter and Facebook are examples. Such startups believe on their owners’ assumption that some day they will thrive and develop into another giant.
Large companies despite their feasible stability and large revenues are constantly compelled by inventive and innovative competition from other large organizations. Together with differences in customer tastes, new technologies and legislation such competition can build pressure for more disruptive innovation.
Buyable startups are companies that were begun to be sold to a larger company in the niche. Such companies are usually begun with little equity, evolved and quickly sold off to other companies when their value peaks.
More than any other type of startups, lifestyle are about passion as profession. Their owners usually try to develop profit by living the life they love. The most common examples of such businesses are providing surfing lessons or yoga lessons by enthusiasts, beginning a photo studio or a gym to assist other people with the same interest and make money.
This type of startups involves usually some shape of charitable foundation. Their goal is to make the world a nicer place, but, unlike scalable startups, their owners are not driven by the hope of wealth or power.
To know more basic types of startup ventures in details, refer to the links given below:
In today's era, there is a hunger of innovation. Only a good idea isn’t enough. A startup should focus on better execution to make tremendous difference to the end.
Click here for the ideation of lifestyle and small business startups:
We, at OpenGrowth, are constantly looking for trending startups in the ecosystem. If you want to know any further information about the startup ecosystem, then do let us know in the comment section below.
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