Finance

"Small Business Startup"

"Hey, I left my full-time job to run my startup"

We're sure you must have also heard someone say this around you. But what a startup is? Don't you ask such questions?

What is a startup?

Very firstly, A Startup is an idea or concept taken up by an entrepreneur to test, validate, and grow into a scalable business model.

Going by the definition itself a startup has 3 major aspects:

Testing
Validation
Growth

What’s common in all startups?

A startup is basically an idea that aims to solve a particular problem in an industry. First and foremost, a startup identifies a particular gap, theoretically and logically, in any industry that exists between the demand and the supply. A startup is born either to solve a problem, to address a gap, to make the processes easier or to optimize the solution. Basically, a startup builds on an idea that is to be tested and analyzed further.

How does a startup build trust?

Building trust includes a two-fold strategy. Firstly, establishing a sound business model. Secondly, building trust in the idea. It basically means to validate the idea or the solution on the touchstone of business that includes commerce and market. It is to make sure that the idea suggested has a sustainable future so as to ensure that the people and the finances associated can be trusted for profit and serving both.

What do growing startups look like?

Growth for any business venture means growth of its revenue as well as brand awareness. It refers to the growth graph or the growth magnitude that the idea or the solution gets. It is calculated based on monetary as well as non-monetary considerations. It is to make an idea of the scalability that the startup is expected to show in the future. This makes available the considerations for future planning.

Let's take the case of Amazon, an e-commerce giant to understand these processes:

Amazon:

It began as an online bookstore in 1994 with an initial focus on testing the market and gauging customer interest in online book sales. Amazon launched its website as an MVP & actively engaged with customer feedback and data analytics to improve user experience, selection, and pricing.

The success of the online bookstore model led Amazon to expand its product offerings beyond books. Amazon worked consistently in order to improve its business operations and customer experience. Further, to support its growing business, Amazon went ahead in building a robust infrastructure. Eventually, Amazon expanded globally, reaching out to customers worldwide through strategic acquisitions and partnerships.

This process consisting of testing, validating, and growth made possible the emergence of an e-commerce giant that has been continuously following the strides of growth and diversification

How Popular start-ups are?

In the commercial industries ranging from Food to technology and booking cabs to booking flights, every domain has got a startup linked to it that is trying to solve the problem or to cover the gaps already therein and thus making the processes easier for the people. This is leading to great publicity of the idea as a startup that has a fundamental goal of serving its target market and also earning money through the same.

What’s happening in start-ups today?

The growing popularity of startups today and their growing brand trust have got startups in the central role. With the heavy emphasis on venture capitalists, fundraising, growth KPIs, ROI (Return on investment), etc startups are furthering their growth potential and making economies grow stronger & bigger, day by day. For instance, in India itself, 2-3 startups are born every day.

What’s the future of startups?

With growing awareness and trust regarding startup ideas in people as well as market forces, the future of startups is pretty bright and glazing, lest it’s a matter of time to conclude whether the glaze proves better or bad.