A Startup is a new venture or an emerging business that is trying to offer a unique product or service in the market which is non-existent till date (e.g. Uber, OYO rooms). Apart from offering a new unique concept, a startup may also be trying to offer an existing product or service through an innovative channel or medium (e.g. Amazon, Naukri.com).The main aim of a startup is to design and deliver an effective, viable & scalable business model.
There are many factors which are to be kept in mind while launching & steering a startup since these factors can become the reasons of huge success or even harsh failure of the startup. The factors can be summarized as follows:-
- Market Opportunity
- Market Timings
- Growth Ambition & Planning
- Team Structure
- Team Commitment
Let’s see how startups work. This initial stage comprises of finding the right team. People with a diverse set of skills come together and make an alliance. After skills comes the financial resources which are contributed by the team or are borrowed from external sources like banks, Venture Capitalist or Angel Investors. Legal formalities like making the MoA, AoA, Shareholders agreement, Loan agreement, terms & conditions etc are devised in consultation with the legal experts hired by the startup to confirm the contribution, seriousness & commitment of the partners or the team.
The startup will begin its journey by designing a prototype to assess the possible plus & minus points. There are more chances of failures than success and every startup has to face this uncertainty until their product/service becomes a hit or even if they are able to see the first signs of acceptance by the target customer base, they can dream of success in the long run.
A startup can become a billion dollar company by continuously innovating and adapting itself with the changing landscape like Facebook or it may cease to exist as its product/service loses viability like Orkut.