In recent years, the appearance of startup companies has helped the market become more active. However, not everyone understands the meaning and value of it brought to the labor market in the 4.0.
What is a startup company?
In Vietnamese, “startup” is translated as “startup” is not really true. Debut, literally means “start a career” (probably) business. If you start a profitable business plan then you can say you are starting a business. However, is that a startup? – The answer is: Not sure!
Let’s start with the startup business by defining what is a startup.
“A startup is a company that works to solve a problem without a clear solution and does not guarantee success.” This is the definition of Neil Blumenthal – co-founder and executive of Warby Parker (USA).
According to Investopedia, the startup is a newly formed company and started to grow. Startup companies are usually small in size with little capital from a single founder. These companies offer a whole new product or service or product / service better than what is available on the market.
Startup companies usually start with the idea of a new product / service
This means that each startup is a new idea in a field or process. The common startup company’s common formula is: Product development with little capital → Growth at impressive rates → Invested or acquired by larger companies.
With that formula in mind, the goal of a startup company is not profit but product perfection and growth.
Here you can basically understand the difference between startup and a business startup plan.
The goal of startup is to grow, if you. A startup company is designed for unlimited growth and as fast as possible.
In fact, growth is the desire of every business in every field. However, if you are starting a business, this growth rate will be limited by capital and profit.
Startup companies are not. They grow at all costs, even “burn” money into advertising campaigns, expensive marketing to dominate the market. When the market share is big enough, the company will control the game by adjusting the price of the service, how it works, and making a profit. This process usually takes years and to get there, the startup company needs to be invested or acquired by the big business.
A startup must have the ability and speed to grow rapidly
If your startup does not grow or grow slower than the expectations of the investor, it means that you are not welcomed by the market and closed because the capital is no more sooner or later.
Level of creativity
It will help you realize that startup projects start with creativity and adventure.
The startup company offers a whole new product or service or product / service better than what is available on the market. It could be a delivery service, or a car sharing application that connects people on the same journey … to bring new value to customers. Obviously, the “new” elements are potentially risky but also full of potential if they understand the market needs.
Not only that, startups do not hesitate to try new models, new operating methods or expand into new areas to achieve growth goals in the shortest time. This is something traditional businesses rarely dare to do without a detailed plan and careful risk management.
In recent years, startup – start-ups like a trend, especially in the field of technology. When you will realize the success rate of startups is very low by facing many risks both in terms of market, capital and management experience of the staff. This is also the reason every day thousands of startup companies have to shut down because of failure with their project.