What is a Startup Business? Types and Characteristics

Want to Begin a Startup Business? Get to Know First What a Startup is

      Startup is a term that refers to the first stage of a company's business operations. A startup is a business founded by one or more entrepreneurs who want to develop products and services to meet the demands of the market, and they are trying to make their business irreplaceable for their customers. Startups also provide opportunities for learning and innovation. (wikipedia.org)

The initial capital issued by startups is generally used to develop a business plan and market research, to find out the market demand for the product or service they create.

Characteristics of Startups

- Business age less than three years

Startup refers to a newly started business. A company that can be called a startup is a company that is less than 3 years old.

Using internet

The internet has become important, because it is used to work on and create products, to establish business communications.

Multitasking

With a minimal amount of human resources, startup members are required to be able to multitask or have more work than they should.

Minimum HR

Usually the startup team has a membership of under 20 people. There are even startup companies with only three to five members.

All business activities can run smoothly because of the assistance of technology.

Having innovation and unique ideas

Innovation and the uniqueness of ideas are an important basis in establishing a startup. Companies must be able to innovate by creating their own unique characteristics and differentiate them from other companies.

Dominated by technology

The term startup is used only for companies that are engaged in technology. So that not all business fields that use the internet can be dubbed a startup.

Types of Startups

Startups in the field of commerce

Do you know an e-commerce application that you often use for online shopping? This e-commerce application is a type of startup in the field of trade, accommodating today's era when buying and selling goods are starting to shift to online platforms.

The benefits of shopping with this startup are quite a lot. In addition to being practical and time-saving, prices in e-commerce are usually cheaper. people also don't have to waste energy to go to shopping malls.

Startup in property

Startups that are currently favored by the world community are property startups.

If you know the famous sites in the property sector, it is a form of startup movement in the property sector that has been done by many people.

To pioneer this type of startup, there are several things that you have to go through.

Startups in the property sector should provide their clients with information on tips or solutions on how to find the right home. In addition, the client must also find a solution for a light home or apartment loan loan.

Startups in Insurance

This type of startup is playing in the field of human life insurance. A person has to pay a monthly fee in order to enjoy future insurance benefits.

By creating an insurance startup, someone will get a referral to the nearest and quality hospital, a trusted doctor, and other health services. This type of insurance startup can be a reference for someone to determine what type of insurance is appropriate.

Startups in the game field

For millennials, playing games on smartphones has become a habit to fill spare time. This is in line with the large selection of games that can be downloaded on smartphones.

These types of startup games can bring in big profits, especially if they are packaged well, so they can attract the attention of many people. Not only millennials, or children, but also adults.

The Difference Between Startup and Conventional Company

Organization structure

Startup operations are usually determined entirely by the founder or the company's management. Investors don't interfere much with startup businesses. Investors only engage in strategic decisions.

In a conventional company, the running of the company is strongly influenced by the wishes of the company owner, either directly or indirectly. In fact, there are many companies whose investors are included in the company's management.

Financing

Startup founders only spend money when starting a business, hoping that investors will come to provide fresh funds.

If investors trust, startups can receive millions to billions of dollars.

Conventional company funding comes from one or more company owners, the procurement of funds can also come from the results of replayed profits.

Profit goal

Startups are high-risk companies, because they still have to find the proper business capital, and constantly looking for the market.

Corporate growth is the main goal of startups even though the company must continue to burn money in the early days.

Conventional companies usually focus immediately on being able to make a profit. The goal is to provide profit to the owner.