by Celina Joyce D. Lazaro, JUNE 2021
Day by day, we are dealing with lots of problems that hassle us in our daily life. As our population expands, the demand for certain products or services also increases. Due to these situations, some companies and ventures are focusing and innovating the right solutions for our different demands to bring them to the market. This is called a startup. A startup is a young company wherein one or more entrepreneurs develop a unique product or service that can solve the real problems in today’s modern world.
Most startup companies are initially funded by their founders and interested investors. Silicon Valley is known for its strong venture capitalist community and is a popular destination for startups. Startups use seed capital to invest in research and to develop their business plans. Market research helps determine the demand for a product or service, while a business plan outlines the company’s missions, visions, and goals.
In the early stages, startup companies have little or no revenue at all. Startup companies need to develop, test and market their idea. They also need to prove that their idea of having this product or service can provide solutions to the market and can create revenue in these ideas.
There are small and medium-sized startups that are focused mainly on information technology applications and services. According to startup guru Steve Blank, a startup is a “temporary organization designed to search for a repeatable and scalable business model”, while a small business runs according to the fixed business models. For a startup founder, this concept means the following three main functions:
- To provide a vision of a product or service with a set of characteristics.
- Create a series of scenarios of the business model regarding customers, distributions, and finance of the company.
- Understand, whether your business model is the right one based on customers’ behavior based on your business model predictions.
According to Steve Blank, there are six different types of startups: lifestyle, small business, scalable, buyable, social, and inside a large company. But there are significant differences between the people, funding, and strategies involved. Not understanding those differences can screw your chance to succeed. In line with technology, scalable startups are what Silicon Valley entrepreneurs and venture investors aspire to build. Google, Facebook, Skype, and Twitter are just a few examples of scalable startups. Starting day one, the founders believe that their vision can change the world. They always search for a repeatable and scalable business model. When they find it, they start to look for more venture capital to boost their businesses.
If you are an aspiring programmer or just a person with a wonderful or crazy idea, startups might interest you. Startups are for people with ideas that think that they can change the world for the better. Starting a business is not always easy, especially with so much competition out there. However, when there is heart involved, your passion will shine through, and others might be able to see that and might support your business. One of the best traits of Filipinos is that they care about their countrymen and this is one of the reasons to try to have your startup.
About the writer:
Celina Joyce D. Lazaro. Simply Celine. Graduated as a Computer Engineer in Bulacan State University and current position as Toll and Traffic Systems Associate. Bubbly but shy. Finds peace in quiet places. Also an optimist.