What is a startup? Definition and examples

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Time flies so fast that you don't have time to notice how yesterday's cupcakes turned into cupcakes, and ordinary sweaters into something intricate called "hoodies". Yes, the modern lifestyle makes it necessary to regularly replenish the vocabulary with new words in order to keep up with the latest trends. Therefore, today we will analyze what a startup is.

Definition

The term startup (from the English startup) was introduced into use by American entrepreneur Steve Blank. By it, he meant a commercial project, the purpose of which is to make a profit after its development. The word startup can easily be replaced with a synonym for a business project.

But there is one caveat. A start-up cannot be called the opening of a vegetable stall in the market or a bakery. This term should only be used in relation to new business models that have their own unique characteristics. It will be much easier to understand what a startup is if you familiarize yourself with the history of the emergence of this term.

A bit of history

Starting point of occurrenceThe term "startup" should be taken as 1939. Then two young students William Hewlett and David Packard made their contribution to the development of innovative technologies - they created their first low-frequency generator. If someone hasn't guessed yet, then we are talking about Hewlett-Packard (HP).

Then this invention was something fundamentally new. No, there were generators on their own, but the HP200A model was distinguished by the presence of an incandescent lamp in it, which was used instead of a resistor. This feature made the low frequency oscillator more stable and less expensive than other models available on the market. Hewlett and Packard called their invention "startup".

Another striking example of what a startup is - Apple, which in 1976 began the production of handicraft personal computers under its own brand. Today, the release of a new smartphone from this company produces a massive stir around the world.

From the above, we can conclude what a startup is.

Startup is a fundamentally new business project, located at the starting point of development, which involves the emergence of a new innovative product on the market.

Startup: how is it different from a business?

Even in the media, you can hear how the word startup means a young business. But this use of the term is not entirely appropriate, since there are significant differences between these two concepts.

Signs by which you can distinguish a startup from a business:

Idea

If an undertaking is based on an already established business model, then this is a simple business start-up. But when it's based on a new idea, like a quadcopter cafe, it's a start-up.

Teamwork

Usually, a team of people who share a common interest and purpose work on innovative startup projects. Moreover, each participant is given a separate role, which significantly speeds up the launch of the project. While starting a business can be easily handled by one person.

Implementation time

This point follows from the previous one. Since a whole team of like-minded people is working on a startup, its launch time, as a rule, does not exceed 6 months. As for business, there is no place for haste. It may take more than 1 year to analyze the market, develop a business project and marketing strategy.

Age of the founders

The emergence of startups is due to young people, or rather their ambition, creativity and energy. People with experience usually come into business, the average age of which is 30-35 years old.

Funding

Behind innovations are always not only developers, but also sponsors. Some have an idea, others have the means to implement it. Businesses are most often opened at the expense of their own savings.

Development stages

If we consider successful startups, we can make up their stages of development, regardless of their specifics. The whole process consists of 6 stages, each of which has its own characteristics.

Lifethe cycle of startups was compiled by the same Steve Blank, setting them out in his book. Its distinguishing feature is that it is possible to understand how successful an idea for a startup was only after the completion of the last stage.

6 stages of startup development:

1. Pre-seed or inception. Here the idea itself, the image of the product, is formed. It may still be blurry, but there must be a clear understanding: why, how and why this particular product should exist.
2. Seed or sowing. At this stage, team gathering, market research and project development begin.
3. Prototype. The initial implementation of the project, that is, the creation of a working model designed to work in perfect conditions. In parallel with this, the search for a sponsor for investment in a startup begins.
4. Alpha version. At this stage, the working model is tested by a small group of people, errors are identified and adjustments are made.
5. Closed Beta. The development has a fully functional look and functionality. The user group is gradually expanding.
6. Open Beta. At this stage, intensive promotion of the product to the masses begins.

How to launch your startup?

As sad as it may sound, many startups are folded already at the first stage. Yes, there is an idea, but what to do next? Some lack experience, others lack enthusiasm, others lack determination.

Experts in this field note that all people have the potential to become the creator of an innovative idea. The main thing is to be able to look at simple things from a different angle. Commonstereotypes, standards, rules are the main obstacles that hinder the innovative development of mankind. In addition, there are some tips to help you launch your startup and get your nascent project off the ground.

The future is the main guideline

You need to constantly keep up with the times, and even better - a few steps ahead. To do this, you need to be a permanent participant in innovative seminars, exhibitions, conferences. This will help not only to keep abreast of all the latest developments in the world of technology, but also contribute to the acquisition of useful contacts. After all, a well-coordinated team is needed to implement a startup.

Choosing the right direction

You should always bet on what you know. To do this, you need to choose one area and become a professional in it. It does not have to be related to science, medicine or computer technology. You need to look for yourself in what is close.

Becoming a pro is easy. You just need to devote all your time to your favorite business, communicate with like-minded people, and not be afraid to take on even the most complex projects. If it does not come out with a startup, then at least it will increase professional value, and with it, the ability to earn.

Solving a problem is the key to a successful startup

According to statistics published by CB Insights, 42% of startups fail because the product is not accepted in the market. That is, he was simply useless. The best startups have becomethe best solely because they solved the problem of a person that he faced daily. From this follows a logical conclusion: to generate a good idea, you need to find a problem and solve it.

5 best startups in Russia

Innovative business ideas are born all over the world. Even in our homeland there are people who stirred up the minds of not only compatriots, but also foreign skeptics. In support of these words, here is a list of 5 interesting startups implemented in Russia.

Top five startups in Russia:

1st place. Endless flash drive

The first news about the endless flash drive or flash safe thundered across the country. Media reports, video reviews and blog entries have dismantled this invention literally piece by piece.

Its essence is as follows. A flash safe is a kind of conductor through which information passes from a PC to the cloud storage. At the same time, its user can remain anonymous and not worry about data security. After all, the information that is in the online storage is securely encrypted.

2nd place. Beavan

Bevan is an innovative model of an inflatable sofa. It would seem that what could be innovative in inflatable furniture, which was invented more than 100 years ago?! And here's the thing: to inflate the bivan, you do not need to use any additional devices or physical strength. Just wave it and a complete place to relax is ready.

3rd place. Smartphone app - Prisma

Program forphoto processing is no surprise. With just a few taps, you can change the sharpness, contrast, and saturation of your photo. With a strong desire, you can even become a half raccoon.

The Prisma application offers to make a picture from a regular photo in the style of one of the great artists, for example, Kandinsky. But the uniqueness of the idea is not in this. Conventional image processing applications simply apply one or more layers of filters to the photo. Prisma sends it to the server for analysis by a special neural network, after which the entire image is rewritten.

4th place. MULTICUBE

MULTICUBIK is a mini-projector capable of displaying photo and video files on any flat surface. The success of this startup can be explained by the correct positioning of the invention. The creators presented it as an alternative to modern gadgets (smartphones, tablets, PCs), because of which children often have he alth problems.

5th place. Cardberry

The latest startup will make all the fans of shopping and not only breathe a sigh of relief. After all, Cardberry is a mobile application with which you can put all discount cards (with a barcode or magnetic stripe) into one. The perfect start-up based on the problem-solution model.

These examples are the best way to motivate and confirm that you can bring your idea to life, even with only 100 rubles in your pocket. The main thing is to make a little effort and start the thorny path to your goal.