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    What is a startup?

    Many people have heard of it, and few can define the meaning of the term Startup. Get to know more!

    Perhaps this is a common word in the area of technology, and obscure for many others. The word is already used a long time. The Startup can already give us a hint of what it would be: start, begin . We can say that Startup is the initial stage of an organization being formed. Unfortunately, many may end quickly as we will see further on.
    Startup is very connected to innovation, something new, something different, that aims to solve a need and at the same time generate revenue. Because of this, it is common to see Startups in the area of technology, which brings technological innovations, systems, and possibilities that we never imagined, but that after they appear we say, “how did I not think of it before?” Or “How did I live without it? “.
    In summary, a Startup is a young and temporary organization, seeking in the process of intense validations, a scalable and sustainable business model that solves a market need. It can arise within an already structured company as well as be started at ground zero. Guided by a different idea, the risks are high, you have no historic, there are no forecasts, the investment is low, in other words, it is an extremely difficult and challenging environment.
    Like any high risk investment, your potential profit is much higher than a low risk one. Imagine your traditional savings against the exciting stock market multiplied by 10, this can be an analogy made between a traditional organization versus a Startup. Low investments require a low cost of staff, and everyone has the ability to do everything. They are teams committed to a purpose, often earning less, doing something they should not be doing, and working hard for a promising future.
    We can give some examples of successful Startups: Google, Facebook, Uber, Airbnb and LinkedIn. All those organizations can already be considered as sustainable organizations, which are no longer Startups. For sure that before they became big, few people wanted to join these companies.
    Still have questions? See if the organization fits in the items below:
    – Temporary organization;
    – Organization in which you are initiating something;
    – Organization with an innovative idea;
    – Organization with scarce resources but with potential;
    – Organization with high risks and uncertain future;
    – Organization in search of exponential, scalable and sustainable business model;
    – Organization with few people, lean team;
    – Organization with a generalist team, where there are no very defined areas and all have different skills.
    And when does the organization stop being a Startup?
    It stops being a Startup when it manages that your business model becomes sustainable and scalable, with a high profit.
    Why do not many Startups survive?
    For this question, we separate the top 5 motives from why Startups do not survive based on the CB Insights poll, analyzing 101 Startups:
    # 1 – There is no market need
    Does the idea really solve a market need? In our head it seems to make sense, but maybe not to the current market.
    # 2 – The money is gone
    How you should employ your money is still a frequent challenge and one of the reasons for failure.
    # 3 – Wrong team
    In a Startup you need to have a diverse team with different skill sets to succeed.
    # 4 – Watch the competition
    There can be many competitors and you need to follow and know your competitors directly.
    # 5 – Pricing of products and services
    The price can tell the odds of your company being a success, or not. It’s expensive? It’s cheap? How to generate value?
    According to Forbes, about 90% of Startups fail, and we have those 10% of where big and new organizations come from. It is estimated that contrary to what we have seen in the past, there will be no companies that will be at the top for too long. New ideas will come up every time, wait and you will see, a new Google is coming soon!
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