
Startup
What is a startup?
In answer to the question of what is a startup, we must say that a startup is a company that is in the initial stages of its work and operation. A startup is a company founded by one or more entrepreneurs; People who want to develop and supply a final product or service well and believe that there is a very good demand for said product or service in the labor market.
The term “startup” is not a permanent issue and phase for a business and business, and it is not only related to jobs in the field of technology and so-called Tech.
Usually, startups have less workforce and more growth potential than their business competitors. They are supposed to offer a product or service with broad appeal that either doesn’t exist yet, or that is supposed to solve a problem for customers better than options on the job market.
These types of companies, which are known as start-up companies, usually start their work with high and staggering costs and have little income in return! For this reason, most startup businesses look for one or more external sources of investment to grow and improve their current working conditions.
These companies focus on a single product and service and intend to release it to the market on a set date, most of the time, this group of companies has a business model (a complete and developed business model) and most of the time They suffer from the lack of sufficient capital to go to the next level and stage, so they rely on foreign capital.
It might be interesting for you to know that the big and money-making brands in the world such as Facebook, Amazon, Apple, Netflix or Google were once small startups that expanded their initial idea with a lot of work and effort and by attracting labor, developing the company and Attracting foreign capital, they have become billion dollar and very famous brands in the world today.
Simply put, the personality factors of a successful startup company include the following:
• Very creative
• Has the ability to solve problems
• Ability to grow quickly
• scalable
Having enough courage to disrupt all the existing equations in the market (conventional and old routines)
Startup facts
Now that you understand what a startup is, it’s not a bad idea to familiarize yourself with the facts before getting into the various details of startup businesses:
• In startup businesses, entrepreneurs and founders provide the initial capital to start the business and try to use foreign investments to avoid failure and premature emptying of the company’s pockets.
These funds can include things like friends and family, crowdfunding, bank loans, and venture capitalists.
• Startup businesses have a high risk of failure, but at the same time they can become a special place to work with exceptional benefits and provide ideal learning opportunities for the workforce with a focus on creativity and innovation.
• A startup company should also consider its business location and legal structure and submit it to the relevant organizations to advance the work.
• Startups are companies that can grow quickly and go to higher levels and do not have geographical limitations.
• The costs of most start-up businesses are higher than their income and therefore they need foreign investment. In fact, without acquiring foreign investors, it is not possible to develop and enter the labor market and provide the final product most of the time.
• Sometimes, a startup is built and designed around an exit strategy, meaning that the company will be sold to a larger and more capable organization upon reaching the initial sales target.
• Many startup owners are known as multiple entrepreneurs. They provide time and capital and the initial idea of starting a startup, and after the wheels of the startup company start moving, they hand over their daily responsibilities to other qualified people and prepare themselves to start and implement a new startup project.
Before we want to deal with the topic of “what is a startup” and other startup issues, including its types, types of investments in startups, or starting zero to one hundred startups, we must point out that having the ability to be an entrepreneur on an international scale And global is a very special advantage for the individual and can lead to a very attractive subject like the Canadian startup visa.
That is, instead of limiting yourself to local financial sources and struggling with some new and even wrong start-up policies in the country, you can present your business idea and business plan to start-up organizations approved by the Canadian government. And by attracting approval and initial capital, pave the path of long-term immigration of you and your family members to Canada, entrepreneurship and development for yourself.
Advantages and disadvantages of startup jobs
In summary, the benefits of startup businesses include the following:
• Having more opportunities to learn
• Increased responsibility in employees
• Greater flexibility
• The benefits of working in a free environment without rigid rules
• Encouraging individual innovation and creativity
• Floating working hours
But on the other hand, the disadvantages of this type of work are as follows:
• High risk of failure
• The urgent need to have foreign investors and the possibility of running out of funds midway
• High stress
• The competitive environment of the labor market and the existing difficulties for survival
Financial resources in startups
Types of financial sources for start-up companies include the following:
• There is generally a preliminary stage or round known as bootstrapping, where the founders, their friends and family invest in the startup business in question.
• After this stage, it is time for the seed funding option, where strong investment companies known as angel investors invest in new and promising startup companies. Of course, the satisfaction of these companies depends on various things, including the presentation of a justified business plan and business model.
• Next, there are Series A, B, C, and D investment rounds, which are mainly led by venture capital firms and invest tens to hundreds of millions of dollars in qualified companies.
• State and institutional awards and grants for the winning projects of startup competitions
• Start-up loans (through banks or other institutions that require principal and interest)
• Startup Incubator, which are community-based programs for new entrepreneurs and provide them with initial funding, guidance and training; Usually, incubators provide entrepreneurs with access to a common space and all the tools needed for that program, and they promote the development and growth of qualified startups.
• Finally, a private company of a startup nature may decide to become a public company and open its arms to attract foreign money through an initial public offering (IPO), which can be done through a non-public company SPAC and Or direct offering in the stock exchange can be done.
Types of startups
Now that you have a good understanding of what a startup is and how it is financed, it is not a bad idea to familiarize yourself with the types of startups on an international scale. Getting to know different types of startups will help you to think well about the market and the growth potential available to you and make a decision about it.
According to the information provided on the startupsavant website, startup businesses include the following 6 types and are based on the abilities, goals and desires of the entrepreneurs:
Lifestyle startups
This type of lifestyle startups are companies that are formed around the interests and feelings of the founder. That is, this type of startup allows its founders to participate in their favorite activities and hope to generate income.
For example, a passionate and professional guitarist opens an online music store and starts a music education business by offering various lessons; This business is in line with the individual interests of the founder and is considered one of the lifestyle startups.
Small startups
Usually, this type of business is calculated from the beginning and does not start with scalability and is launched only based on the desire to start a business and achieve economic and financial stability; But there is no plan for its rapid growth and development, such as a food store, beauty salon, or restaurant.
Scalable startups
This type of startup is a growth-oriented company that accepts an idea or concept and tries to grow the business quickly and achieve the highest profit as quickly as possible, which is a clear example of Silicon Valley and current New York startups.
In fact, this category of startups requires thorough market research to identify exploitable opportunities in the market.
Social startups
These types of startup businesses are created to make a difference or have a positive impact on the world around them. Unlike other types of startups, social entrepreneurship startups are not created to make a fortune, but in any case, it is possible to make a profit from them. These startups are created with the intention of using an idea to create a positive change.
Startups of large companies
Growing a large business usually requires innovation and reimagining, and that’s exactly where large corporate startups are born.
A type of startup that is created by a large company to introduce a new product or reach new contacts and is supported financially and invested by such a company. In fact, any new business created by a large and active company is considered a large company startup.
Buyable startups
Some types of startups are designed in such a way that it is possible to transfer ownership and sell it in the future. In fact, instead of growing or expanding their business in the long term, these startups are more concerned with reaching a point or stage where they can sell it to another company after earning some profit.
Service startups
At present, every year a variety of service startups have entered the field in Iran, and despite a lot of effort, a large number of them face failure, although a limited number remain standing and gradually make a name for themselves and become profitable and successful. they arrive The categories of these start-ups, which are very similar to the global scale, include the following:
• Recruitment and employment matters
• Cosmetic field (sales)
• Real estate sector
• Field of virtual education
• Play
• podcast
• Insurance
• Motor courier and internet taxi
• Trade and investment
• Advertising
• Watching online media (video service)
• Exercise and fitness
• News and articles
• Pets and related products
• Internet payment services
• Medical field
• Legal services
• Infrastructure services
• Organizational services
• Public Service
• Digital marketing
• customer services
• buying and selling goods
• social network
• Online shop
And many other cases that take a new shape and change the mechanism of every industry.
Zero to a hundred startup startups
After examining topics such as what is a startup, types of startups, types of investment in this type of business and other matters, if we want to briefly explain the process of starting a startup from zero to one hundred, we must say that this process includes the following:
• Having a new and creative business idea to start a startup business
Extensive and comprehensive market research that helps you understand how practical and possible your idea is and what the current market conditions are for accepting your new business idea.
• After passing the important stage of market research, it is time to create a business plan idea or business model that defines the company structure, goals, mission, values and other important details of your startup business.
• Then it comes to one of the most important steps, i.e. personal investment or acquiring foreign capital
• After that, you should go to the legal and administrative procedures of the company, including business registration, obtaining various permits and licenses, etc
• After that, it is time to rent or buy a suitable property to start and run a startup business.
• Then you should work with consulting and expert forces for advertising plans and planning to attract customers, think about all aspects of customer service, possible business problems (assessing the percentage of success or failure in the market) and cases with risk and error and for They think of a solution. In this way, you have the possibility to develop and upgrade your startup business and brand and you can experience proper growth every year.
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