A business startup (otherwise known as a startup company or just simply, startup) is a company at its first stages of developing the product or service which their business founders believe will be in demand. These companies are usually financed by its founders but since this kind of funding will not be sustainable in the long-run, it will require additional financing from investors and venture capitalists.
Although this type of companies exists in all types of business around the world, the term is mostly associated with the information technology and the rise of many so-called Internet startups during the dot-com bubble in the1990s. Many of these Internet startups eventually failed mainly due to the lack of sustainable revenue or major flaws in their underlying business plans. Some of these Internet startups, however, did survive even after dot-com bubble burst, like the online bookseller Amazon.com and Internet auction place eBay. Most of this startup activity was from an area in California called Silicon Valley, which is still known for having a lot of startup company activity.
A company ceases to be a startup if it has undergone various developments, such as being publicly traded, or being merged or acquired by a larger corporation and ceasing to be an independent entity. Or in an unfortunate turn of events, startups may fail and stops operating altogether
Want your business startup to succeed? Here are some tips.
1. Enter a business area that you deeply enjoy, since you are going to spend a lot of time and effort to start it and make it succeed.
2. Ask yourself if you have the necessary skills, initiative, determination as well as the mental and physical energy needed to start a business.
3. Start a business with a family member or a friend who can act as a sounding board for ideas and can lend a sympathetic ear and shoulder. People starting a business need a support system especially when a crisis occurs. Some entrepreneurs choose for the experienced guidance of a mentor, or enroll in a support program for startup companies.
4. Evaluate the existing demand for the potential business venture. Research the market you will enter and find out everything (including the size of the market, possible demand for the products/services, likely competitors) before committing yourself to implementing your business idea.
5. Make a business plan to at least to know if the startup will succeed or not. It does not have to be a full-scale business plan for you to know this.
6. Since a new business venture is likely to take a long time to actually make profit, you should think about starting a business while still employed. This will make sure that means there is still money available even while you are going through the startup process.
7. Line up clients or customers even before the startup’s official start. Try networking or make the contacts by selling or giving away your products or services.
8. Try to understand all the legal intricacies involved of starting and operating a business, such as the legal requirements for your type of business, and laws on health and safety