1. What is Startup in simple words-definition and history of occurrence
During our small entrepreneurial career, we have opened several businesses and understand that it is not easy. Now our website “Piterberg” it can be attributed to the concept of “startup”.
So, first let’s understand what startup is. The classic definition of a startup, given by American entrepreneur Steven Blank (who, in fact, introduced the term).
A startup is a temporary structure designed to find and implement a scalable business model.
In simpler words, you can define a startup as a new commercial project, which is created in order to profit from the business after its successful development.
The term “Startup” is translated from English as “the beginning of the process”, its “start”. However, not every opened commercial project can be called a startup. Under this definition falls only a small part of developing from scratch business projects.
Classic startups have one characteristic – they have a unique (original, exclusive) idea. A real startup never copies already known commercial projects, but represents something radically new.
Example
At the time, the idea of Mark Zuckerberg to create a social network “Facebook” was absolutely original and new: there were no analogues of this format on the Internet.
If you decide to create your own social network, it will not be a startup, except that at the heart of your endeavor will be some radically fresh idea.
In recent years, the word “startup” has become very popular, although a significant part of the population uses the term is not quite correct.
Under this concept, people mean the launch of almost any business, up to the opening of a new stall in the market. Often a startup is used exclusively for Internet projects.
In both cases, the definition may be correct: if a point of sale in the market operates in a fundamentally new format that can be replicated and used as a profitable business model, then it will really be a successful startup.
The same can be said about the online project. If you have launched a fundamentally new network service to serve the population through the Internet, then you have made a successful startup and become a promising network entrepreneur.
A startup is a newly created company or organization (sometimes not even legally registered) that builds its activities on the basis of innovative ideas or new technologies that have not yet been launched into mass use.
The weaknesses of the startup include a lack of funding and a precarious position in the market. Abroad, such projects are most often created by students: sometimes such firms are called “garage”.
For the first time this term in application to the commercial undertaking was used in 1939 in the USA. At the time, almost all innovation and high-tech companies were based in the San Francisco area.
Several Stanford students, creating a new business on the basis of a fundamentally new idea, called their business a startup. This business eventually took shape in a successful and profitable company in the field of information technology called Hewlett-Packard or HP (HP).
Today the word startup is more often applied to Internet projects. This is partly true, since the world wide web is the most promising modern commercial direction.
Without even thinking, you can name 5-10 successful Internet startups that have brought millions of profits to the creators with minimal initial costs. Suffice it to recall the already mentioned “Facebook”, as well as its domestic version – “Vkontakte” and other social networks.
You can mention Wikipedia (the largest and most popular online encyclopedia), the database of videos “YouTube”, the service “Radical” for storing and quickly displaying your personal photos on the Internet, Votsap, Skype and other services for online communication.
Main stages of startup development
A startup must be successful and in demand in order to attract the target audience, and with it-the money of investors.
The main indicator of the success of a new venture is the willingness of business partners to invest their finances in it. Not always a startup is based on pure Commerce: it can be informational, humanitarian, scientific, but in any case – promising.
The initial stage of work on any startup is the creation of its prototype. As the prototype becomes a full-fledged product, the startup transforms, develops and scales. Scaling refers to the increase in the sphere of influence of the project associated with the investment of Finance.
The ultimate goal of a successful startup is to sell a product to a large Corporation or continue a profitable business as an independent company. There is another option-the withdrawal of shares of the project on the stock exchange and the expectation of its sale at the maximum price on the market.
For clarity, we propose to study the following table, in which the stages of the startup are presented in more detail:
| № | Stages | Embodiment | Features | |
| 1 | Pre-seed | The creators have a clear idea and understanding of what the target audience needs | At this stage there is usually no plan to implement the idea | |
| 2 | Seed- ” sowing» | Market research, drawing up a phased plan, preparing for launch | It is desirable at this stage to think about finding investors | |
| 3 | Prototype | Creating a working startup model | The prototype has only basic functions and is designed to work in ideal conditions | |
| 4 | Alpha version | The product is ready, but is used only by a small group to test and identify flaws | At this stage, adjustments are made and defects in the working model of the project are eliminated | |
| 5 | Closed beta | The product has a fully functional status, attracted a limited number of third-party users | Investors and commercial partners have already been found | |
| 6 | Open beta | Users are actively involved, a large-scale promotion of the project is underway | Contracts are concluded with customers, the first sales of services
and products are carried outWhen the above stages are successfully passed, the product (project) is launched into mass use or production. It is clear that without attracting large third-party capital, large-scale distribution of the startup is impossible. |
When the above stages are successfully passed, the product (project) is launched into mass use or production. It is clear that without attracting large third-party capital, large-scale distribution of the startup is impossible.
That is why for any commercial idea, the investor is no less important than originality and novelty. Even the most brilliant projects need financial support.
1. How to create your startup-5 tips from practitioners for beginners
Generating commercial ideas is not so much an innate gift as a skill. To become a successful startup under the power of every reasonable person with minimal creative inclinations, which, as you know, everyone has.
Experts in the field of profitable startups believe that ideas for launching the latest projects can be seen in everything around us. It is only necessary to change the angle of view a little and to abandon some generally accepted social judgments.
Most “serial entrepreneurs” have a special notebook in which they regularly make fresh thoughts and observations. Over time, they can grow into interesting and profitable business ideas. We advise you to also have a notebook or open a special file on an electronic device.
For greater efficiency of doing business, you can use and implement TRIZ-theory of solving inventive problems.
And now-expert advice on creating your own startups
Let’s start with a simple example:
Resale of Chinese goods with a large margin (300-800%).
You can buy goods in bulk in China or from a wholesale supplier in a major city and start selling them over the Internet. Often such a scheme is also called “Business with China” — a very profitable and promising direction in Runet.
The team of our site is personally familiar with the successful entrepreneur in this topic Evgeny Guryev. Jack is not only long and fruitful conducts business, but also to teach others.
If you want to start your own startup in the near future and start earning 100-200 or even 500 thousand rubles in a few months-please contact Eugene and he will hold your hand on all issues of creating a successful business on the sale of Chinese goods.
Be sure to check out the feedback of young students to be inspired by their success stories:
Tip 1. Look ahead
Be aware of new ideas, technologies and initiatives all the time. Attend relevant resources, use of technical information and new products and all the things that yesterday did not exist. Be at the forefront, think about products for the next generation.
To make our world what it is (meaning its best features), helped those who did not cling to the past, and looked to the future. Our future includes portable gadgets, nanotechnology, and machines that run on fundamentally different types of fuel.
Try to think in terms of the future. Do not think that these are empty dreams and fantasies: tie innovative ideas to real problems. Original and creative thoughts rarely arise on their own – they need to be stimulated by daily practice.
Tip 2. Become a professional in anything
In the modern civilized world, there are many special areas where it is impossible to get a person from the street. Nuclear power, medicine, customs, professional sports.
Creation of own business in highly specialized spheres is possible only after acquisition of work experience in the employee of the company of this profile.
Become an insider-a person who studies a particular industry from the inside – and you will be able to break into profitable markets with the necessary knowledge base. The main thing is perseverance and a sincere desire to understand how everything works in a particular branch of business.
Example
Michael Bloomberg worked as an “it technician” at Salomon Brothers Bank. In the early 80’s he was fired, giving compensation in the amount of $10 million.
With this amount, he created his own firm Bloomberg L. P., engaged in providing commercial information to interested organizations and individuals. Now the company is the leader of its niche, and Bloomberg himself is the 13th in the list of “Forbes” and part-time mayor of new York.
Becoming an expert in any field or a master of some powerful tool is not so difficult. Just take the time – make a personal investment that will bring you profits for the rest of your life.
Well-known entrepreneur and specialist in the field of personal development and business Brian Tracy says that the best investment is to increase your own value and ability to earn.
Meet different people, talk to them, offer your help. Let as many people as possible know about your skills.
It is great if you become cool in several areas at once-for example, in medicine and trade, in stock markets and IT-technologies. At the intersections of two different spheres opens a lot of prospects.
Tip 3. Find a problem you can solve
Look around and fix what is preventing you from living, working or resting. Pay attention to such problems for which you can not find a ready-made solution, because it (the solution) may not exist.
It often happens that you have a firm that faces certain difficulties. Another company is being created that eliminates such difficulties. Successful activity leads to the fact that the second company becomes more profitable and larger than the first.
Example
The world-famous Flickr resource for storing graphic files appeared when a convenient way of placing user images on the network was needed to launch an online game.
Now the system has millions of customers, and no one remembers about the game itself.
Tip 4. Strive for continuous improvement of service in different areas
Try to improve everything around you, because there are no limits to perfection. You pay special attention to those things that cause people to dislike or hate: finding housing and Parking, obtaining documents, transportation, visiting doctors. Think about how you can solve these problems more efficiently.
It may be worth bringing in the latest technology to improve existing algorithms for everyday actions.
Think, for example, how smartphones can help workers in large enterprises perform their functions rather than hinder them. Or how in the digital age, you can solve the problem of queues in public institutions.
Remember that monopolists and large state structures have no incentive to develop. Challenging established systems is difficult, but not hopeless. Some world-famous corporations appeared precisely because of the desire to make the service more comfortable than it came from competitors.
A large part of the successful companies today were at one time derivatives (and some almost clones) of other successful endeavors. The most famous examples are Amazon and Ozon, Facebook and Vkontakte. Even credit systems (cards) Tinkoff – domestic version of foreign analog Capital One.
Think about what you can add to existing commercial projects to improve them. Maybe we should find new, cheaper ways to implement or radically improve the service. Such innovations are often much more profitable and promising than buying ready-made franchises. About what a franchise, we have already written earlier.
Tip 5. Find a product for new markets
New markets appear constantly, but not everyone has time to track them. Mass products from large corporations are constantly creating many promising areas for the development of their own business.
The most telling example is the creation of Microsoft by bill gates. The firm was founded to implement software for the home computer, released in 1975 by MITS. The mass product became the starting point for the promotion of one of the most successful business projects in the world.
1. Investing in a startup and finding financing for your business
All major investors are aware that the maximum income promise “dark horses” – unknown startups from young and talented, but penniless entrepreneurs.
In Russia, as in the world, venture capital organizations and so-called “business angels”are engaged in financing startups.
Venture funds dispose of other people’s money-mutual funds (mutual Funds), assets of insurance companies or pension funds.
“Business angels – are representatives of private capital, independently choosing the objects of financing and investing in promising initiatives.
It is in these two directions that novice startups should move in search of investments. You can also attract relatives, friends, public funds. Oddly enough, in Russia, the help of relatives is the second category in terms of investments in promising business ideas.
Another productive method of finding investors is participation in forums, conferences, competitions held by venture companies and other commercial structures.
1. Examples of successful projects-TOP 5 startup ideas
There are many examples of successful startups. Every year the directions of commercial thought change. Today, coworking and Internet applications are relevant, tomorrow they will talk about private kindergartens or private recruitment agencies.
Today the most popular are the following startups:
Organization of cargo transportation Agency working with active involvement of Internet technologies. A very promising direction given the fact that more and more people are shopping in online stores.
Many people want to sell some thing, but do not have time for it: the mediator can take over the organization of sales for a certain percentage of the proceeds.
Organization of a private kindergarten. Many parents do not want to use the services of municipal institutions, fearing a lack of attention from the staff. In a private company, children are given more time, besides there is an opportunity to regulate the duration of the child’s stay in the garden.
Creation of convenient systems for converting electronic currency into cash.
Create effective applications to quickly host and launch online stores for sales through social networks.
This is just a sample list, which can be supplemented indefinitely. You can find a more profitable and interesting option for yourself: it is only necessary to approach the matter creatively and make some effort.
Watch Mikhail Dashkiev’s video from his business youth about what an effective startup is and how to start it:
6. Conclusion
Sum up. Successful ideas are in the air, and most of them are quite realistic to implement. Each of us can create a successful startup-we just need to believe in our own strength and use our expert advice.
Start small. To begin with, start at least one of your business from scratch, and having gained experience, move on to a more complex-start your startups.
We wish you good luck and successful projects!
