Start-up Company

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Description of Start-up Company. Explanation.

Definition Start-up Company. Description.

A Start-up Company (SC) is a new business venture or company in the earliest stage of its operations. It is a relatively new, usually small business. Sometimes SCs are not even real legal companies yet, because they are still temporary or in formation.

Quite often, the term startup company is used to indicate just a subset of new companies: technology-oriented firms having perspectives for exceptional growth, aiming at disruptive innovation, or at creating a Blue Ocean. Such startups, when they are successful, are typically more profitable than established businesses, in the sense that they can potentially grow rapidly with limited investment of capital.

Attractiveness of Startup Companies for Investors. Scalability!

In case they are designed to search, build and implement a repeatable and scalable business model, allowing for fast future growth, SCs are very attractive for suppliers of private equity or venture funding, such as angel investors, venture capitalists. A startup company represents an attractive opportunity for an exceptional return on investment, albeit with high risk levels.

Startup Business Strategy Frame

Startup success is greatly attributed to pre-startup phase planning. Startups develop business plans to pitch their ideas to secure funding and or partners.

Here you can find a useful strategy template for a startup strategy.

The End of Startup Businesses

Due to disappointing demand, revenues, or errors in the underlying strategic vision, strategy or business plan, many small scale entrepreneurial organizations turn out not sustainable in the long term. In such circumstances, a sound exit strategy is useful.

In a more positive scenario, a startup business will cease to be considered a 'startup' when it passes certain milestones, such as becoming profitable, or becoming publicly traded in an Initial Public Offering. Also it may end its life as an independent entity through a merger with or an acquisition by another firm. 

Start-up Companies Special Interest Group Special Interest Group (55 members)

Start-up Companies Forum   Recent topics   Strategy for Start-ups: The Entrepreneurial Strategy Compass In order to help entrepreneurs choose the right strategy by guiding their imagination and commitment toward the realization of their idea(s), J...           5 Development Stages of Small Businesses and Start-ups (Churchill and Lewis) As companies grow, they pass through different growth stages. Churchill and Lewis researched five development stages that companies go through as they...           Creating the Foundation for a Later Success Culture in Start-ups How does a start-up lay a foundation for a success culture during early stages? Does culture happen naturally, or can the company consciously bu...           The 4 Main Tensions in Start-ups Wakee and De Weerd-Nederhof (2008) researched what types of functions or "capitals" (high-tech) start-ups are facing - and need to manage, balance and...           Pitfalls in Financial Planning of Start-ups Poor financial management and planning during the initial stages of start-ups' operations may cause underperformance or even failure. Dunn and Cheatha...           Why Start-ups Prefer Short-term, Internal Financing Bootstrapping, being defined as a set of methods to enable companies to meet its financing needs without reaching out for long term external financing...           Start-Ups Must Be Socially Beneficial Start-ups are generally associated with high growth, technology oriented companies in which investors are interested due to their risk-reward profile,...           Heavy Competition is Beneficial for Startups Having studied tax data of 2 million companies that were launched in the UK between 1995 and 2005, Andrew Burke and Stephanie Hussels in a short artic...           Life Cycle of New Venture. Growth and Transitions Is the life-cycle model appropriate to use when describing the growth and transition of a new venture?...

Best Practices - Start-up Companies

Expert Tips - Start-up Companies   Aligning Compensation Plans for the Sales Force of Start-Ups

Resources - Start-up Companies Sources and Methods of Financing a Start-up Company or Small Business   Establishing an Innovative Social Enterprise   Entrepreneurial Finance: Sources Of Funding   Business Valuation | Company Valuation | Firm Valuation   Preparing a Feasibility Study     News about Start-up Companies         Videos about Start-up Companies         Presentations about Start-up Companies         Books about Start-up Companies         More about Start-up Companies

Compare with: Business Incubator  |  Liquidation Value  |  Feasibility Study  |  Blue Ocean Strategy  |  Joint Venture  |  Special Purpose Vehicle

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This ends our Start-up Company summary and forum.