Startup - what is it like to start and spin a startup?

To open your business, you do not need to have a lot of capital, because there is a newfangled direction - a start-up. In the countries of the former union, such companies are only evolving, but there are people who have been able to promote their ideas and earn huge sums of money on this.

What is a startup?

A company that strives to realize its unusual idea and offer interesting products is called a start-up. In most cases, these are young firms, but they can originate within the existing business. A startup is an organization that does not require funding. Many mistakenly believe that this direction applies only to the IT sphere, since any useful idea can be realized.

Startup and business differences

Some people who have superficial knowledge in this topic consider the startup to be a small business , but in reality these are completely different concepts. There are many distinctive features that help to understand the essence of the startup. The main characteristic that distinguishes a new direction is innovation, that is, it is important to create something new or improve the existing one, but small business in most cases is not unique. To understand the startup - what it is, you need to take into account other characteristics

1. Scale . Small business has boundaries, while in the newfangled direction there are none, and its goal is to constantly expand.
2. Growth rate . For a startup, it's important to develop at the maximum speed, while for business the priority is profit.
3. Profit . When using an innovative idea to get the first profit, it can take months, and sometimes years. The main thing is to create a unique product that the customers will like.
4. Technology . For small businesses, the use of special technologies is not necessary, but to create a unique product without them is indispensable.
5. Life cycle . According to statistics, 92% of startups are closed in the first three years, and as for small businesses, the value is 32%.

Types of startups

There are several different criteria by which certain types of similar companies stand out. By the degree of science-intensive there are start-ups based on high technologies and traditional organizations. The first include business options built using new scientific discoveries, but the latter do not require the creation of an innovative idea. There is another classification, so they distinguish such types of start-ups:

1. A matter of all life . Many people have organized their own business, using as a basis their hobby, which eventually starts to bring money.
2. The goal is enrichment . In this case, in the first place are the promising directions of the market, and not the interests of the owner. The main goal is the rapid growth of the enterprise.
3. Family company . Such organizations are small and their main difference is uniqueness. This includes, for example, a family restaurant or a private hotel.
4. Global initiatives . This includes areas that are leaders and cover users at the global level.

How to start a startup?

To understand whether the proposed idea will be in demand and whether it will bring profit, it is necessary to take into account many details. It is important to understand the startup - what it is, and you need to start by presenting how the created enterprise will look after 3-5 years, taking into account the main characteristics. After that you can proceed to the formation of a business plan, which should include the main stages of the company's development: creation, location, promotion, employees, product development and distribution, potential profit, possible losses, and so on.

Financing start-ups is not so important as an idea that can be unique or borrowed from the West. Use all information on creating an enterprise that can be found in different sources, which will create a unique product, not a copy of an existing business. It is best to find companions, but there should not be more than two. To implement the idea, you need money investments and there are several options for obtaining investment.

How to start a startup?

When the idea was launched, you need to think about how to spread it among potential buyers. Successful startups are difficult to imagine without promotion on the Internet, so it's worth starting with. To begin with, you need to create accounts from all social networks and start promoting pages. You can do it yourself, but to reduce the time you can contact the special companies that provide similar services. There are other tips that will help start a startup:

1. Writing and placement of promotional articles. To do this is recommended gradually, following the reaction and feedback of people:
2. For promotion it is important to choose the correct source of traffic for the site.
3. Creation and launch of contextual advertising.
4. Get useful acquaintances and especially among journalists.

Startups with minimal investments

To open your business and start making money, it is not necessary to make large investments. In the world, you can find a huge number of examples, when a unique idea became the basis for a popular business. A startup without a budget can be opened by everyone, most importantly, to find a suitable direction. For example, the culinary sphere is common, as many organize mini bakeries, restaurants and confectioneries in the kitchen, making dishes for export. Other options for start-ups with minimal investments: virtual services and the production of unique things with your own hands.

Investing in start-ups

Search for a person or company that makes an investment in a start-up business is not easy. You need to choose an investor with the mind, for which you will consider several rules. Of great importance is personal compatibility, as it is necessary to find common ground with a person. It is important to choose the way of further cooperation, that is, whether the investment will be one-time or not, whether the investor has the right to participate in the management of the company and so on. Be sure to ask if the potential investor has made investments in start-ups earlier, and in which ones. It is important for a lawyer to participate in the signing of documents.

Where to find an investor for a startup?

There are two main directions in the search for people who are ready to make investments. The first rule is the rule of three F (Family, Friends and Fools), that is, you can refer to relatives, friends and fools. The second direction involves looking for investors for a startup among those who invest in different projects, for example, it can be banks or funds. It is important to approach the selection of the sponsor carefully, because it depends not only on the successful launch of the enterprise, but also on further work.

The most successful startups

The modern economy of the country necessarily takes into account the success of projects created from scratch. There are many startups that bring millions of their organizers:

1. An example is the online Uber taxi service, which generates a weekly profit of $ 20 million.
2. The most interesting startups are often connected with tourism, for example, the Airbnb service helps people quickly rent accommodation in different parts of the world, addressing owners, not agencies.
3. The cost of this project is $ 10 billion. Another example is the cloud storage system Dropbox ($ 10 billion).

Best Startup Books

Unfortunately, not all newcomers manage to gain a foothold in this sphere and in most cases even a unique idea leads to failure. This is due to the fact that very few people really understand the startup - what is it, and the lack of experience plays an important role. In order to minimize risks, it is recommended to get knowledge and skills in this area before organizing your company and for this purpose the books about the startup can not be better suited.

1. Startup G. Kawasaki . The author is one of the founders of Apple. The book examines key aspects of business and management. Councils are rectilinear and supported by facts.
2. The startup. The reference book of the founder S. Blank and B. Dorf . The reader is offered a step-by-step instruction on how to create a successful business. Advice of experienced professionals will help to avoid mistakes.
3. Startup without a budget M. Mikalovits . The author, with his recommendations and examples, convinces readers that business can be created in any situation and with any budget. For success, unshakable faith and hard work are important.