What is a Startup?
Do you feel like you've been seeing the word "startup" on every corner lately? The "startup" sticker is used by more and more companies, however, not every newly established company has typical startup vibe. So what does this term really mean?
Not only typical startups, but also bigger e-commerce and online companies have been advertising on StartupJobs. Therefore, it may be a little harder to find your way around what a startup is - and what it isn’t. That’s why we would like to put everything in perspective:
Definitions vary, however, we at StartupJobs consider a startup any company which is in its beginnings and brings to the market a unique and innovative solution thanks to its products or services. At the same time, in the way we see it, a startup company has to develope quickly and dynamically and benefit society.
Are you wondering which company can still be included in the "startup" category? Does our definition sound a little too general to you? Take a look at a few specific examples of what a startup IS NOT:
Startup is not
Newly opened patisserie on the square
We definitely have nothing against cakes and other sweets, but the fact that the confectionery is newly opened does not make it a startup. They also offer desserts in the other confectionery nearby and in the café across the street.
An Insurance company with several thousand employees
We don’t want to offend anyone, but let’s be honest - we don’t find much innovation in the insurance industry. And not much dynamics or a relaxed atmosphere, either.
Recruitment agency, real estate agency, headhunter or consultant
All of them certainly have their place in the labor market, however, they are about as close to being a startup as Mr. Žralok is to being a freshwater fish.
A company with new offices and friendly vibe
It's really not that simple. A pleasant working environment is typical for startups, however, positioning tables, friendly atmosphere or a relaxation zone do not make a company a startup.
Is it a bit clearer now?
Let’s describe startups more precisely:
Startup is a fast-growing, often technology-oriented company that has a great vision and ambition to change a specific industry or area. A characteristic feature of a startup is rapid growth.
A startup is usually staffed by a relatively small team of people who, in addition, often change positions within the company, due to the dynamism of growth and change.
When starting a business, startups try to keep costs as low as possible and ensure the shortest possible return on investment.
The goal of a startup is to grow into a stable and prosperous company. However, due to the rapid growth, startups are associated with a relatively big business risk and many of them end in failure.
Due to the high "mortality" of startups, the most successful ones are called "unicorns". This term refers to startups whose market value has already exceeded $1 billion. We would like the term "sharks" to be used more, but they haven’t heard our wishes in Silicon Valley yet. Someday, maybe!
How does a startup start?
The establishment of a startup is preceded by an initial business idea. The first phase of a startup's "lifecycle" is called "Early Stage". The future success of a startup is based mainly on a great executive and the right scalable model.
The "Early Stage" is followed by a phase in which the company is officially established and seeks funding to enter the market. This phase of the startup is called "Seed". Startup financing is often covered by investors. Startups also often obtain finance for initial costs from crowdfounding or startup accelerators and incubators.
After obtaining finance, the startup enters the market with a single goal - to grow into a prosperous company as quickly as possible. You’re guessing right - this phase of a startup’s lifecycle is called "Growth".
In the last phase, the startup has a stable structure and is working on further growth and expansion. If successful, startup’s journey ends when it fulfills its original vision. Prosperous startups often end up being bought by another company.
What’s it like to work at a startup?
Startups are famous for their friendly and informal atmosphere. Due to the rapid growth, the employees can also learn fast - much faster than in a corporate. Working at a startup can be meaningful and entertaining at the same time, which makes it a win-win situation. What are the particular specifics of working at a startup?
Sleek dress-code, endless meetings and courtesy phrases - those are the thing you really won't find in a startup. Nobody cares about your clothes there, meetings are done in a few minutes and new ideas are discussed at any time.
In a startup, ideas turn into reality right in front of your eyes. You won’t work on something that would end up in the trash. On the contrary, you can see the results of your work very quickly.
In a startup, you are involved in implementation of innovations and in constant contact with news in your field. You can often decide what innovations make sense for your company. You will not come across any outdated procedures and technologies.
In a startup, your colleagues can also be your friends. And this applies to all team members - the intern as well as the boss. The hierarchical structure doesn’t mean much in a startup.
What are you still waiting for? Let’s check the hottest job offers at startups!
Do you want to take a peek at the Czech startups? Check out StartupJobs Insight!