The term startup has recently been found in the dictionary of Polish entrepreneurs. It means a company created to find a specific business model. The main goal is to achieve rapid financial success and to discover the market for the development of your product. After learning these general guidelines, questions may arise. Which industry is the best to start and is the game worth the effort at all?
Definition of a startup
A startup is a temporary enterprise or organization that aims to find or acquire a market for its product. Success should be spectacular, at international level and naturally – without a great financial contribution. As a rule, such initiatives arise in the technology industry or are associated with technology. They may also apply to the IT industry, but there are no real obstacles to such an initiative being created in any known industry. The popularity of this business structure in the technology market results from the ease of spreading its activity on the Internet, and thus – obtaining international coverage. This in turn increases the chances of higher income.
Advantages of a startup
The biggest advantage and its main feature is operating at low costs. The general assumption is the lack of initial capital. This in turn means that startups are the domain of young, talented and ambitious people. The prospect that it is possible to achieve professional and financial success without any initial financial outlay is certainly tempting. There are many elements that will help when starting a startup – diligence, ambition, determination, and due to the lack of financial contribution, low risk of loss.
The second benefit of starting a startup is the opportunity to gain invaluable experience in the industry or in running a business. It will allow us to make another attempt to create a technology company in the future, but with a better result. For a young entrepreneur, this is sometimes the biggest profit he could dream of. This ensures that even if a temporary failure has plunged dreams of international success, the next time a young entrepreneur with experience will not allow a similar development.
However, you cannot think negatively from the beginning. If the concept of startup is well thought out and properly carried out, then the prospect of success the first time is most real. However, the market must need a product that the startup started to create, and implementation must also be competitive.
Disadvantages of a startup
By its very foundation, a startup has a certain risk of failure. They are founded by young people, without experience or financial support. According to the estimates of Piotr Prajsnar, the founder of Cloud Technologies, of all started startups, about 2% of them have a chance for international success. Less than 10% will transform into companies in the whole sense of the word, and all the rest are doomed to failure. The main factor affecting a large percentage of closed startups is the lack of a specific business plan that is to be created along with the development of the startup itself. Without preparation, even the smallest, it’s not difficult to fail. Even a well-run startup that has an investor has no guarantee of success.
Popular industries for startups
The Businessinsider report claims that in Poland there were roughly 2,700 startups in 2017. The most popular are the production of mobile software in the SaaS model (software as a service) and e-commerce. The situation of startups in Poland also reflects well the state of startups in the world. The dominance of technology in the startup industry does not mean that success is impossible in other areas of the market. Opening this type of technology business is simply simpler without the resources to start.
From zero to millionaire
Although the concept of a startup in Poland is quite fresh, such an initiative in the world already has a certain tradition, and many of them have become internationally known enterprises. Here are some examples of companies that started with a startup and are now recognized around the world.
This is probably the best and most frequently used example from zero to millionaire. Titanium in the technology industry and social media. Recognizable everywhere around the world. Almost everyone has or had an account in it. It was created by Mark Zuckerberg during his studies in 2008. Now it is one of the richest companies on the market. Thanks to this spectacular success, his creator was the youngest billionaire in the world, now he has a fortune of 54 billion dollars.
This well-known platform for publishing micro entries also started with a startup. Now, without a doubt, the most popular microblog in the world. It was founded in 2006 by Jack Dorsey, Eva Williams and Biz Stone. This website has changed the way you think about public transport. Its range is so huge that it is not new when users use it as a source of political but also cultural news. For celebrities, Twitter is often the first place to publish unfiltered reviews in a short form, for millions of users as recipients. The site is now valued at $ 112 billion and employs 4,000 employees in 35 offices located around the world.
This is a Polish startup that enjoys international fame. This platform is used to monitor the internet, social media, blogs and forums to find references to a given topic. Collects information on a specified password or product and collects it in a database. It was created in 2011 by Michał Sadowski, Piotr Wierzejewski, Karol Wnukiewicz and Dawid Szymański, who also created Bitsy Boys, a music video containing tips on running the project on the Internet.
The company also started as a startup. It was founded in 2002. Manufactures tools for online marketing and analyzing website traffic. The company cooperates with, among others, LG, Phillips, Samsung and Bosch. It has a total of approximately 15,000 customers. The company, to which the company currently belongs, has opened a branch in the United States.
As you can see, the idea of starting a startup seems to have advantages only. Low financial outlay, which also means a small risk of repercussions after unsuccessful implementation on the market, is very tempting. However, low risk is of no avail if you don’t have a specific business idea. Global success is certainly a perspective that encourages action. However, remember that first of all it is hard work that guarantees the success of the venture. Constant efforts translate into valuable industry experience and, as a result, a greater chance of success. There are many examples of great companies that started with nothing but a good idea and their own work. That’s enough, and now – to work!