Startup- An Introduction.

 STARTUP- an introduction:-)

So , finally starting off, lets talk about the topic ! 

What is a startup ?

A startup is a company newly incorporated and is in its first stages of production.

It is a young company formed with an assumption that the product (both material and service) provided by it have some demand in the market.

So, the question here is - Is every new business a startup ??

There are a lot of (literally a lot ) debates about this topic . Some consider it to be true but some denies the fact ! 

According to some studies and definition , which i found the most appealing was -

That every new business is not a startup. A business ,started just now , have the capability to be called as startup if there are possibilities and plannings of it being run on a very large scale in future. In simple terms, suppose you started a shop, it is a new business but not a startup basically because it will serve only a limited area, but on the other hand , you plan to expand this business in future by opening the outlets at different places and you feel that there is a hope of its being successful on large scale, it will be termed as a Startup.

And that is why a startup needs more funds than the other .

One crazy answer to this question that i heard was that there is no difference between the two terms, people just call it a startup to sound cool😂.

Well, its just everybody's own point of view. 

Some notable examples of a startup:-

Image. Source:- Google

Moving on , following are the pros(advantages) and cons(disadvantages) of starting or being a startup:-

A.Pros:-

1. Best place to explore your potential.

• Startups usually start from zero and thus need little of everything . The diverse work have to be managed by 5-10 persons usually. It allows them to explore their potential and know about the field or department in which they can ace. 
• Hence, a better start for long term carrer.

2. Flexible working hours.

As it is a newly formed and a closure kinda business, people are often allowed to work according to their wish. They are allowed to come late or work overnight . Working hours are really flexible in these kind of businesses.

3. Attractive benefits for employees.

A new business generally require low working capital( funds for daily operations) . Hence, it can contribute to employee development programmes, or can give extra incentive to them . This policy attracts able employees for the business.

4. New method of work.

Startup is Focused on carrying on an innovative idea. It is based on modern concept. Since it is newly incorporated, it uses modern methods of work, technology etc. 

B.CONS:-

1. Risk of failure

A new business is always at a risk of failure. It is uncertain as it is unknown that the idea might work or not. Further, business environment is also dynamic, it adds to more risk.

2. Inexperience

Human resource available with a startup is usually inexperienced and hence they can face a lot of problems, either it be of lack of managerial skill or lack of knowledge about something. It is a serious hurdle in its development.

3. Low income.

Every new business keeps its product's price low so that its product can enter into the market. Further, the production is not even done on a large scale. The business even incur high cost on its infrastructure or other legal works and hence, it welcomes little income only.

4. Funding problems.

A big question for every startup is to as from where to get funds. Investors see every aspect of the business before investing. Moreover there is a huge risk in investing a new business. Hence, startups end up getting les funds than required. But on a good note this problem can be tackled. The subject matter of this is for another blog. 

So, i have pen downed all the advantage and disadvantages of a startup. Hope it helps you to get a deeper knowledge of the subject. 

So, that's all for today.

Will discuss more in other blog

Till then, 

Pin me please. 😉

Regards.

~shreya

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a sneak peak of my startup series