The term Startup has become widely used nowadays, however, there are many people who still do not know really to what kind of companies, or even due to this lack of knowledge it is used in the wrong way because a Startup company has certain characteristics, which we will share below, that differentiate it from the others, for example from the SME companies.
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Startup company
The definition of a Startup company is used especially in the business world and specifically when it comes to new technologies and innovation and this term refers to a recently created company, no more than three years, which is able to achieve extraordinary results in the market even when they do not have sufficient resources, but they do have valuable human and technological capital to be able to offer an innovative product. This type of company is created with the aim of providing technological solutions to the needs, however, the life of these companies as Startup is very short, because due to its great capacity for growth and scalability in a short term go to another level, it does not mean that it disappears as a company but rather ceases to be a startup as its characteristics change.
Young company
As mentioned above, it is about a company whose creation time does not exceed a couple of years, and also has a very short life span. This happens because a Startup company is created on the basis of an innovative product or service that seeks to solve a problem in the market, which leads to taking high risks, and in the case of the Startup, you grow, or you close, that is, you live to grow quickly and level up to cease existing as a Startup, or you simply close in the short term.
Take advantage of new technologies
A Startup company is practically born based on new technologies, the intelligent use of new technologies allow a Startup to offer real solutions to the market with an innovative product that can be provided through Internet or ICT’s, even allowing it to operate without the need for investment in a physical structure.
Scalability and low budget
Perhaps this is one of the most admirable characteristics of a Startup company. Thanks to its previous definition of objectives once it is created have significant growth, and this is due to this type of company provides real solutions to the market through its product or innovative service, which can generate a significantly higher capital inflow compared to its initial investment or even to its investment costs to operate, and best of all is that it can do it in a short time.
Do you have any opinion about this subject? Have you thought about starting your own Startup?
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