Definition of Startup by the US Small Business Center (USSBA)

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Dec 7, 2021, 4:59:02 PM12/7/21
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Digital marketing enthusiasts are talking a lot these days about startups. In this article, you will learn about the concept of startup and its examples.

Startup is a company that is in the first stage of its operations. These companies are often initially supported by their entrepreneurial founders and used to develop a product or service because their founders believe there is a demand for it. Due to limited revenue or high costs, most of these small-scale operations are not sustainable in the long run and will not last without the help of investors.

In the late 1990s, the most common type of startup was dotcom. Investing at this time was very easy due to the interest of investors in the emergence of this type of business. Simply put, a startup is a technology-based business. Not every technology-based business is necessarily a startup, but all startups use the web, mobile, Internet website traffic, and new technologies to grow and reach a large number of users.

What is a startup?

Definition of Startup: Although the framework of the concept of startup is almost fixed, but for this concept, definitions are provided, some examples of which we will examine:

Definition of Startup by the US Small Business Center (USSBA):

A business that is generally centered around technology and has high growth potential.

Definition of Startup by Steve Blank:

An organization formed in search of a business model that is reproducible and scalable.

Definition of Startup by Eric Reese:

A startup is a human entity that has been created to present a new product or service in a situation of high ambiguity. This definition is given in Eric Reese's book Pure Toddler.

Definition of startup as an English word in Webster Dictionary:

Operation Set up and launch an operation or move

What is the difference between a startup and a small business?

At first, many of us may think of startups as equivalent to small businesses. Although startups and small businesses are similar in many ways, there are differences.

  • In terms of similarity, both are small companies made from almost nothing (without much capital) and aim to fill the neglected segments of the market. Both are focused on growth and profitability and are fighting for survival in the market.
  • In terms of differences, startups have different characteristics than regular small businesses. The startup has a young face, usually comes up with a new idea, and this idea is usually implemented through new technologies and Internet-dependent. Competitive advantage is very important in startups. 
  • Something that may not be present in every small business. Usually, startups have the ability to influence even the behavior and culture of the consumer in a society. However, out of every 10 startups, usually only one of them succeeds because the startup environment is very challenging.
Types of startups

Sunblock, author of the Economy website, introduces 5 types of successful startups as follows: (Types of startups)

  • Lifestyle startup

It is a startup that is integrated into our daily lives. For example, a person who has provided an electric car for fun in the park, by offering it to others and receiving money, can keep his electric car at a high level and have more fun.

  • Small businesses

In this type of startup, it is usually owned and operated by a family, and they do more to support the family.

  • Expandable startups

These types of profits are more productive and generally form a group of innovative and creative clusters. So that a few good ideas together form a purer idea.

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Types of startups include lifestyle, small businesses, scalable, for sale, social and large businesses

  • Startups designed to sell quickly

For example, in the field of housing, start-ups are provided that can solve the problem of real estate companies quickly. The creator of this startup only aims to sell this startup to large companies.

  • Social startups

The goal of these startups is not just to make money, and their focus is more on turning the world into a better place for humans.

  • Large startup companies

Large companies are forced to compete with new programs and startups due to changes in customer tastes, new technologies, legislation, new competitors, and so on.

  • Social startups

Unlike scalable startups, the goal of these startups is to make the world a better place, not to gain market share or build wealth for its founders. After stating the types of startups to better understand the concept. Startup, you need to get acquainted with startup weekend.

Startup Weekend

Startup Weekend is a 54-hour weekend event where people from different groups (developers, business executives, etc.) come up with ideas. In fact, Startup Weekend is a place to present ideas. Judges and investment companies decide to accept or reject ideas by looking at different ideas. 

The first startup weekend history, which is also the first startup history in its current form, dates back to 2007 in Boulder, Colorado, USA. 70 investors were present at that event.

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In the continuation of this article, a brief history of entrepreneurship in Iran and the world is given in order to answer questions such as how to build a startup.

History of Entrepreneurship

First, we need to describe a concept called production scale.

Define production scale

The scale of production actually represents the output of a unit - usually industrial. Units that have a high output rate know their volume of production with a high scale of production. How to produce falls into the following four categories, which will be briefly described:

  • Custom production: custom production
  • Batch production: In batch production, each job goes through different work sections so that different jobs have different production routes. This production is characterized by the production of a limited number of products in a given period of time.
  • Mass production: Large-scale production on a production line
  • Continuous production: such as chemical production or cement production
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Beginning in the 18th century, entrepreneurs moved from small-scale production in small towns to mass production. The availability of energy and manpower led to this move. The growing demand for products required proper organization and on the other hand provided the space for businesses to start. The United States played a prominent role during this period, and entrepreneurs such as Andrew Carnegie, George Morgan, and John Dee. Rockefeller, Frank Kennan and Henry Ford.

There are other startups that operate in different fields. They can be seen below:

  • Accommodation reservation: season and night
  • Application sales: Bazaar Cafe, the first music market: Novak
  • Financial services: Zarina, Von Pei, Wayne, Payment, Express, Bahamas, Ping
  • Mobile Advertising: Tips
  • Sale of home appliances and food: 5040
  • Home Services: Home Service, Wisdom, Master
  • Education: Frames, Home School, Bank Professor, Salam Professor
  • Online laundry: quick drying
  • Health: Telemedicine, online testing, Dr. Dr
  • Internet advertising: Saba vision and e-Network

According to the above list, the startups needed in Iran can be identified and created with a correct idea generation.

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How to build a startup?
  • Just get started! Many ideas come to mind after starting a task because after evaluation and evaluation, the points that need to be identified can be identified.
  • Sell ​​it! Sales is an art that has been written about over and over again. Selling can inspire an idea for you.
  • Ask someone to give you advice and then implement it yourself.
  •  Hire remote staff.
  •  Hire contract staff.
  •  Find a colleague.
  •  Work with someone who will lead you to infinity.
  •  Do not focus on money.

You can also use the checklist this website to drive your ideas to startups and start a business.

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