If you have been following trends, you would have heard of the word start-up at least once or twice like me. Strangely, many have affiliated that word to tech and tech bros. Well, here is a simple guide to walk you through what exactly start ups are.
Cheers to a new knowledge about to be learned
A startup is a business in its early stage of development that provides a product or service that is currently unavailable elsewhere in the market, or the founders believe to be able to provide in a superior manner to disrupt the market. The primary goal is to develop a product that consumers will enjoy and will sell. If this goal is met, the start-up will likely make millions of dollars in profit.‘’Too much English? Let’s break this down
Remember that startups are said to be young companies that provide a product or service that is currently unavailable or aims to provide in a superior manner to disrupt the current market. Hotels (Airbnb), Search engines(google), banking and finance (piggyvest, Kuda bank), Taxis (uber). Let us focus on one of the world’s most valuable startup, uber.
The concept of Uber was born when the cofounders were unable to get a cab after attending a conference, this discomfort popped the question that laid the foundation of the company, ‘what if you could request a ride from your phone?’ What we see happening here is a simple case of providing a service that was unavailable which led to the disruption of the taxi market. Although Uber started out with just three cars, the ease and simplicity of ordering a car fueled the apps rising popularity.
As stated earlier, understand that the primary goal of a startup is to develop a product or service that consumers will enjoy and will sell. Once this goal is met, it usually leads to high profits for the corporation.
Dear reader, if you are like me, you may have wondered what the difference between a start up and a business is. Well, here are some features that all startups are said to have in common.
INNOVATION– This is the introduction of something new. Like the example given based on ubers, the introduction of a cab hailing app gave the company clear competitive advantage over the regular taxis. Also the use of saving and investment apps like piggy vest and cowrywise over the regular banks are examples.
AGE– A startup is a new company still in its early stage of brand management, sales and hiring employees, although it is often said that age should not be a defining factor for a startup.
GROWTH– Startups aim to grow to disrupt the market as compared to small businesses which only focus on serving a local market and do not pay much attention to growing on a large scale rapidly.
RISK– According to Neil Blumenthal CEO of Warby Parker‘’A startup is a company working to solve a problem where the solution is not obvious and success is not guaranteed.’’In summary, they are often high risk.
FLEXIBILITY– Due to the fact that they are often ready to tailor their product to meet customer requirements, they are seen to be very dynamic and are ready to adapt to the adversities that may arise.
SOLVING A PROBLEM– Startups are innovative in nature, it focuses on solving a problem in peoples lives and the market place through their product or service.PS: startups do not have to be tech oriented to solve problems, but they often use technology to solve problems.A startup can be considered as a company that is in its early stages of development that tries to solve real life problems through a product or innovative service.