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.
