Startup Introduction

Getting familiar with the startup world

A startup is a newly formed and fast-growing company founded by one or more entrepreneurs to seek, develop, and validate a scalable business model. Initially, that company is confused about its product, customers, and revenue generation. When it figures these things out, it becomes a profitable business. Startups also have several specific characteristics, and some of the most important ones are innovativeness and potential for rapid growth.

To start with the best chances to succeed, startup founders need to think about three things: a strong team, a viable idea, and a promising market. Successful founders should have the vision to see the bigger picture and possess experience and specific knowledge and skills related to their startup domain.

A startup idea should solve a real problem, have big potential, and either disrupt an existing big market or pioneer a new market. Successful companies like PayPal and Facebook started by addressing real problems and seizing the right timing in the market, which is also very important for startups’ success.

To navigate through this challenging journey, startups need to seek help from mentors, incubators and investors. Incubators help early-stage startups validate their ideas, while investors provide not just financial support but also invaluable knowledge and connections. After validating their idea, developing a product and acquiring their first customers, startups will enter the growth phase, focusing on scaling the product, expanding to new markets, seeking additional investments, and possibly planning an exit strategy through acquisition or an IPO.

Additional learning resources:

• YCombinator – Biggest Mistakes First-Time Founders Make
• Slidebean – Startup vs Small Business. What’s the difference?