3 Mins
share

Startups: What Is It, Types and How Does It Work

Startups What Is It, Types and How Does It Work

As we already know, at this time a lot of new types of businesses have sprung up, one of which is a start-up. You must have heard it somewhere, right?

In this discussion, we will provide information about what a startup is. What is the meaning of it and how does it work.

 

What is a Startup?

Start Up is a company that is currently in the process of development. Development here has a fairly broad scope, it can be in terms of product development, services, and so on.

Startup Types

Apparently start-up businesses can be divided into several types. These types are according to what the focus on.

1. Lifestyle

This type of start-up is run by individuals and is devoted to the work they enjoy. For example, freelancers in the field they are passionate about.

2. Small Business

Small business is a business person who is not too ambitious about developing his business and only focuses on meeting the needs of himself and his family. For example, the owner of a bakery, coffee shop, and so on.

3. Scalable

Scalable Start Up consists of a group of entrepreneurs who believe that the business idea they are building can change the world. These startup founders will think of business ideas that are scalable and try to find investors to improve their business.

For example, there are Facebook, Google, Uber, and so on.

4. Buyable

This type of start-up is a business that is deliberately designed to be sold to large companies when it reaches a certain profit. An example of this is selling Instagram on Facebook.

5. Large Companies

The formation of this is started with a small-scale business but with revolutionary product sales. And over time there are market changes and other factors that make the company create product innovations for new users from different markets. The examples are Samsung, Apple, and Microsoft.

6. Social

This startup focuses on social issues and concerns that surround us. This business will be formed by those who want to make a difference to society and the world.

Start Up Work System

In general, the way of working in a startup is similar to other companies, where employees will be asked to make certain products to be marketed by the company.

However, the difference is that startup workers usually think innovatively since they need to build their company from zero. Even though startups have quite a big risk, they have a fairly fast growth rate when compared to other companies.

Sources of Startup Capital

Furthermore, there are several ways that startups do to get capital:

– Investments from founders, family, or friends
– Rich people who are willing to invest in the startup (Angel Investors)
– Initial public offering or IPO
– Investments from venture capital firms

Startup Profit Source

Sources of startup profits can be obtained from the things below:

– Sales of Products or Services
– Advertisement
– Premium Features

Interested With Start-Up?

That’s the information about what a startup is. Hopefully, the information above can be useful for you. If you plan to open a business, make sure to check out the tips open business from nothing as well to have extra incomes.

Other Article

New Easy Way To Earn Money: Answer Questions And Get Paid

Currently, there are many ways you can do to get income. One of them is to answer questions and get paid on certain platforms. Now, you can access online sites

best trading apps

Best 5 Trading Apps You Should Use To Trade In Nigeria

Nigerian traders who are looking for the best trading apps have come to the right place. The copious amount of apps in the Google Play Store and Apple Store may

Best Website for Freelance in Nigeria

Best Websites for Freelance in Nigeria

There are many online platforms that offers freelance vacancy. But which website is the best one? Here are some websites recommendation that are perfect if you are seeking for freelance