Who and What is a Startup?

Last Update: Jul 17, 2022 @ 11:24 am
ESTRAT360 Arrow

The term startup began their rise in popularity during, as said before, the dot-com bubble. That’s because during that time, a lot of company websites have created and used as the extension of their companies. Startups can be defined in a nutshell as newly formed companies where there are still a lot of things that needed to be ironed out but regardless, it’s a company that already has the potential to market itself.
Startups are deemed as such when they’re running for not more than five years – you can’t call a company that already lasted for a decade a startup anymore. So in other words, what every startups has in common is that they’re practically new companies. Startups are usually paired with technology, but in definition, these companies can come from any field.

Who Can Make a Startup

Who-Can-Make-a-Startup
image source: forbes.com

Anyone can start their own startup company, but only select number do make it and succeed. All one needs to be a startup founder is the right mindset and an innovative product that people will love using. Of course, those wouldn’t be enough. You’d need the right people, the right connections and of course, money. Regardless of how much you want your product to succeed, without any funds to support, it won’t go anywhere.

What Makes a Startup not A Startup?

What-Makes-a-Startup-not-A-Startup
image source: startupsutras.org

Startups are meant to grow fast and become profitable in short amounts of time. That’s why when a certain amount of time since its inception is reached or when a certain amount of profit has been passed, that startups will cease to be called as such. Startups have to reach a 5-year goal before graduating from their startup status or they can reach a certain revenue amount for them to do so – there are other factors that can affect that status as well.
Russell D’Souza, co-founder of SeatGeek says:

“It (startup companies) stops being a startup when people don’t feel as though what they are doing has impact.”

It basically means that if the innovative idea that the company is promoting isn’t innovative anymore or that it’s not selling or if the people within that company can’t push the company forward, then it fails the criteria of being called as a startup company.
A startup will also cease to be a startup when it’s been acquired by a bigger company, however, many founders would also disagree on this statement. That’s because when its acquired, it becomes part of it, but regardless, it will still remain as a startup company.
When startups finally reaches maturation period or passed the revenue quota needed, then it becomes a startup graduate. A company that generates more than $20 million and has more than a hundred employees should be regarded as startups graduate.

Afterword

afterword

Startups are becoming the present in the face of business nowadays. Companies that support these startups, the incubators, have brought many startups into full fledged companies and are continuing to do so. Consumers have benefited from these startups companies the most as they have made their lives generally easier when they featured their innovative services to them.

PHOTO CREDITS: VENTUREBEAT.COMWWW.PHOENIXCOLLEGIATE.ORGHTTP://WWW.KHOKHARMCADAM.CO.UK/
Ruben Licera
Ruben Licera
Ruben Licera is one of the Philippines' international award-winning communications professional and digital marketing experts. know more about him at www.RubenLicera.com
Leave a Replay
Kickstart Your Digital Domination

Set up a free consultation with a marketing specialist.

Reach out to us today and get a complimentary business review and consultation.

COVID-19

Amidst the COVID 19 Pandemic, ESTRAT Media Global OPC is 100% Operational.


ESTRAT team members are working from home to ensure their health and safety.


For concerns, you can email us directly at inquiry@ESTRAT360.com

Ready to take action?

Ruben Licera Image

I hope you get a lot of value from this content.

Do you want to learn more about this topic on how it can grow your business? Schedule a Free Consultation with our Business Growth Advisors NOW!