A good idea is enough to create a startup.
To better understand the features of different startups, you should review their six types.
Every day the demand for entrepreneurs to know the market and customize their business increases, after all, having a good idea is no longer enough, you need to create a vision for the company and implement it in the best way.
But maybe you’re missing an important step to getting to know your company better: the types of startups.
Your startup network is new, may have been established for a while, or competes with large businesses. You think you need to innovate, do what you love; or do you idealize something completely different, with a more social purpose? Would you be able to tell which type of startup yours fits into?
We have shared for you the six main types of startups, their definitions and practical examples of each of them.
Read until the end and tell us what startup is yours!
- Small Business startup
Businesses that are self-funded.
Her owner does not want to improve her, he just wants to provide a comfortable life for his family and bring her closer to friends.
Technology is important to your business, and being small doesn’t mean it stops driving the local economy.
They can create jobs, create and manage websites, social networking sites, and grow. The difference is that their capital usually comes from their own economies, without much intent to expand.
It can be a virtual store, a small business, a travel agent or a barbershop.
2. Scalable Startup
These are startups that make a living from venture capital and entrepreneurs who don’t want to work just to support themselves, but instead arouse the interest of large investors. The vision is a millionaire return.
The potential to grow and be gigantic is the main feature. All they need is the investment to expand, and that expansion is usually fast.
The employees are always the best, quality is paramount and there is also the strategy of generating income and keeping costs low. Uber and Airbnb are some of the examples.
3. Large Company startups
Great companies that design innovative products that can satisfy the needs of modern customers.
Of course, among the types of startups, there is also one that includes large companies that have a lot of time in the market.
The startup of large companies has innovation as its main objective. It’s not just about improving yourself, but creating truly disruptive innovations, making your business model superior or unique.
Companies that fit into this category start with revolutionary products, quickly become popular, but therefore they have to keep changing to sustain themselves.
Being self-sufficient, they adapt and grow along with new demands, trends and transformations. An example would be Apple, which, since the launch of its first computer in 1976, has not stopped innovating.
Apple not only followed numerous technological changes, but was also responsible for their creation.
4. Lifestyle Startup
Businesses that are created by people who have a hobby and are eager to work on their passion.
Lifestyle Startups certainly love what they do and are motivated every day with their business.
This type of startup is driven by dreams and its success usually comes from the lifestyle of that creator.
It reinforces talents and passions and aims achievements for more than money.
Do you want an example? Mathew Jones, a former Australian surfer, became a full-time surf instructor.
Before long, he turned his passion for the sport into numerous useful surfing apps, such as iSurfer.
His success led to other surfers joining it to create new apps. All members of a Lifestyle Startup are essential to the business because they share the same goals and professions.
5. Buyable Startup
In the technology and software industry some people design a startup from scratch to later sell to a larger company.
The acquisition starts from the execution of a successful idea, but that needs investment to structure and grow.
In reality, they are born to sell to larger companies in the same country, such as startups that create mobile apps.
Internet giants such as Google and Facebook are examples of companies that purchase technology solutions from this type of startup. The investments of these investors are generally high risk, but they are what make the difference for the execution of such a project.
6. Social Startup
Startups that exist despite popular belief.
The last of the types of startups, but of great importance to many entrepreneurs, is the Social Startup. It was created by “socially ambitious” people who want to make a difference in the world in some way.
The founders do not aim to be rich – the wealth here is the benefit to the communities, workers or regions where they are present.
A Social Startup may or may not be profitable or merge both models, but always targeting the social and human side.
What matters is that we contribute positively to society. An example is startups in the field of charity.
What type is your startup?