A startup is a young company established by one or more entrepreneurs to create unique and irreplaceable products or services. It aims at bringing innovation and building ideas quickly.
In this video, you’ll find the definition and types of startups.
In this article, we’ll uncover the types of startups, startup business ideas, explore the reasons to work in a startup, and provide a few steps to build a startup from scratch.
Six types of startups
- Scalable startups
- Small business startups
- Lifestyle startups
- Buyable startups
- Big business startups
- Social startups
In our modern world, where everyone strives to bring innovation, a good idea isn’t enough to create a startup. To understand the features of different startups better, you need to review the following six types.
- Scalable startups. Companies in a tech niche often belong to this group. Since technology companies often have great potential, they can easily access the global market. Tech businesses can receive financial support from investors and grow into international companies. Examples of such startups include Google, Uber, Facebook, and Twitter. These startups hire the best workers and search for investors to boost the development of their ideas and scale.
- Small business startups. These businesses are created by regular people and are self-funded. They grow at their own pace and usually have a good site but don’t have an app. Grocery stores, hairdressers, bakers, and travel agents are the perfect examples.
- Lifestyle startups. People who have hobbies and are eager to work on their passion can create a lifestyle startup. They can make a living by doing what they love. We can see a lot of examples of lifestyle startups. Let’s take dancers, for instance. They actively open online dance schools to teach children and adults to dance and earn money this way.
- Buyable startups. In the technology and software industry, some people design a startup from scratch to sell it to a bigger company later. Giants like Amazon and Uber buy small startups to develop them over time and receive benefits.
- Big business startups. Large companies have a finite lifespan since customers’ preferences, technologies, and competitors change over time. That’s why businesses should be ready to adapt to new conditions. As a result, they design innovative products that can satisfy the needs of modern customers.
- Social startups. These startups exist despite the general belief that the main aim of all startups is to earn money. There are still companies designed to do good for other people, and they are called social startups. Examples include charities and non-profit organizations that exist thanks to donations. For instance, Code.org, a non-profit organization, encourages school students in the US to learn computer science.
If you consider creating your startup, we’ve prepared five startup business ideas that will inspire you to develop something unique.
Five startup business ideas
- Create an online grocery delivery service
- Start a podcast
- Develop a dropshipping business
- Create an online language learning app or site
- Consider developing a blog
Before diving into one of the ideas on our list, you should define whether there’s a demand for the startup idea you want to begin with. Consider researching your market first so that you can analyze the demand, supply, and what customers need.
Create an online grocery delivery service
Nowadays, grocery delivery is a great business idea to get started with. To begin, you only need to have minimal setup costs, a vehicle, and a phone. People often have no time to shop offline for some reason. Online grocery delivery service is an excellent solution you can offer. It will provide your customers with all the necessary products at any time. Consider cooperating with local grocery stores to provide your clients with the best quality and a wider variety of products.
One of the examples is Instacart, an app that allows users to pick up products and deliver them fast.
Start a podcast
If you have profound knowledge or specialization in a particular field, you can create a podcast. The audience will appreciate your consistent, valuable, and relevant content. The main advantage of podcasts is that there’s no point worrying about your target audience being busy offline when you make your sales pitch. Great podcasts deliver expert information, build relationships with the listeners, and eliminate costs on other communication channels.
Let’s take The Birth Hour, for example. The podcast’s hosts share different birth stories and pieces of advice for future moms.
Develop a dropshipping business
This idea is especially enticing since you don’t need to buy inventory upfront. Doing a competitive analysis will allow you to sell higher-end products with low shipping costs and obtain good profits.
For example, Mooshe Socks, a small socks shop, does just that.
Create an online learning app or website
If you are good at teaching, you can start an online course. It can be anything: dance classes, yoga, meditations, or languages. By doing this, you can bring value to your students and share your knowledge with them.
One of the great examples is Duolingo. The website enables people to learn foreign languages and take courses to increase and check their language proficiency.
Consider developing a blog
The world is changing, and it’s no secret that bloggers earn more than large business owners. Opinion leaders can make money by placing ads, writing sponsored posts, hosting webinars, providing readers with services, and offering ad space. That’s why there’s a point in creating breathtaking articles, videos, and stories on your website or social media platforms.
Choose an industry you are interested in and create stories that will amaze your readers. It can be a blog about beauty, health, fashion, traveling, or sport.
For instance, Greatist, a fitness and health Internet media startup, managed to gain the trust of many young people.
If you aren’t ready to start your own business, joining a startup company and obtaining valuable experience is a good idea.
Six reasons to work in a startup
Startups open the door not to a to-do list but rather to new possibilities and challenges that will let you grow with it. Let’s jump to the main reasons to join a startup.
- Flexible schedule. For sure, you’ll have a lot of work to do, but you can schedule the tasks according to your own comfort. You just need to negotiate it with your boss. One more advantage is that you can work remotely from any part of the world. The only thing you need is a good Internet connection.
- Variety of tasks. The opportunities and challenges you will face during your work in a startup will constantly change. This means that you will have a chance to adapt to the situation and master new skills to do the tasks needed for the further development of the project.
- Creative environment. It’s widely known that people who take the risk and start a new business have a lot of ideas and welcome creativity. They explore new approaches, products, and services to be original. That’s why you should contact the founders who will help you see everything from a new perspective.
- Professional growth. Working in a startup from the very beginning enables you to build a foundation of necessary skills and knowledge, gain experiences in different functional areas, and take responsibility for multiple tasks. Besides, as a business grows, you will grow as a professional by obtaining new career opportunities.
- Friendly team. Since the majority of startups are small, you’ll have the chance to get acquainted with all your colleagues personally. You’ll also share your ideas and thoughts with your team to boost the company’s success. Joining a startup is like becoming a part of a family.
- Career opportunities. Sometimes a large company pays more than a startup can afford. However, in a startup, you can obtain new incentives and skills while doing completely different tasks. In the long run, you’ll have irreplaceable experience as a professional.
Let’s now proceed to the steps to build a startup from scratch.
Seven steps to building a startup from scratch
- Find a good idea
- Develop a business plan
- Ensure you have adequate capital
- Choose the right people
- Pick a location and design a site
- Learn how to leverage digital marketing techniques
- Create your customer base
If you are interested in launching a startup on your own, it’s critical to consider the following steps to achieve success.
- Find a good idea. To be successful, entrepreneurs search for products and services that are in great demand among customers. Analyze the demand, customer needs, wants, and make sure that people actually need your product. You should also figure out whether your product will be able to attain at least ten clients. This will help you decide which product you want to create and in which direction to move. However, before putting your idea into practice, do your market research and analyze your competitors.
- Develop a business plan. Having an idea isn’t enough since the process also requires a business plan. A business plan is a document that contains a company’s objectives and ways to achieve its goals. It also includes a description of the business future and an outline of business strategy. Statistics show that people with a plan succeeded in obtaining investment capital and growing their startups.
- Ensure you have adequate capital. There’s no definite amount of money you need to start a business since the costs of a startup vary from one industry to another. Depending on the type of business and the situation, you’ll need more or less funding. Some small startups without equipment and employee salaries might cost you approximately $10,000, while other ventures might cost millions. The main source of financing is usually the entrepreneur’s savings.
- Choose the right people. You can’t disagree with the fact that to solve all issues you need some additional help. However, remember to choose people whom you trust wisely. You’ll need some employees and a manager to run a company. The number of workers depends on the industry you are in and how big your business is. Based on statistics, startups are small companies that have small teams. In general, startups consist of up to ten employees.
- Pick a location and design a site. You need to have a physical and a web address so that customers can easily find your company. Consider buying or leasing a property to operate your business. Although purchasing it is significantly cheaper in the long run, you need to ensure you have enough costs. This way, you’ll save funds and have a good investment in your future beginnings. Design a site to promote your startup, take some pre-orders, and schedule possible appointments. Online presence is a must because it helps reach your target audience faster, promote products, and generate profit. SendPulse has a great landing page builder that will help you design a landing page for your startup in just 15 minutes.
- Learn how to leverage digital marketing techniques. You can have a great product, but you won’t be able to promote it without various marketing techniques. Consider the following marketing strategies: SEO, content marketing, social media marketing, email marketing, and PPC. SendPulse allows you to inform your customers about your new product with the help of email campaigns, web push, chatbots, and SMS. You can also take advantage of traditional methods such as print advertising, television, and radio. However, it’s more helpful to adapt to new trends and use inbound marketing.
- Create your customer base. After developing a site, growing your digital presence, and becoming a good marketer, it’s time to build a customer base. Create a convenient website to provide your consumers with a seamless experience and encourage them to come back. To get repeat customers, you need to take care of providing high-quality products and excellent customer service. Your clients are your main priority, so treat them accordingly. You can also create subscription forms with SendPulse without even knowing HTML to build a customer base.
Our world is changing very quickly, and innovations and new ideas come to replace the previous ones. Startups are a result of bringing new ideas to life as they change people’s lives, solve their problems, and simplify their daily routines. With SendPulse, you can promote your startup for free.
- This article defines the term and covers its features.
- This article covers several steps necessary to create a startup from scratch.
- In this article, readers can find eighty startup business ideas that will bring good profits.
Last Updated: 16.02.2022