Start-up Company

Knowledge Center

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. 

Special Interest Group - Start-up Companies Special Interest Group (57 members)

Forum - Start-up Companies   Here you will find interesting and educational discussions.   Creating the Foundation for a Later Success Culture in Start-ups (1 reactions) How does a start-up lay a foundation for a success culture d...           The 4 Main Tensions in Start-ups Wakee and De Weerd-Nederhof (2008) researched what types of ...           Pitfalls in Financial Planning of Start-ups Poor financial management and planning during the initial st...           Why Start-ups Prefer Short-term, Internal Financing Bootstrapping, being defined as a set of methods to enable c...           Start-Ups Must Be Socially Beneficial Start-ups are generally associated with high growth, technol...           Heavy Competition is Beneficial for Startups (2 reactions) Having studied tax data of 2 million companies that were lau...           Life Cycle of New Venture. Growth and Transitions Is the life-cycle model appropriate to use when describing t...

Best Practices - Start-up Companies Here you will find the most valuable ideas.   Strategy for Start-ups: The Entrepreneurial Strategy Compass (3 reactions) In order to help entrepreneurs choose the right strategy<...           5 Development Stages of Small Businesses and Start-ups (Churchill and Lewis) (1 reactions) As companies grow, they pass through different growth stages...

Expert Tips - Start-up Companies Here you will find high-quality advice from experts.   Aligning Compensation Plans for the Sales Force of Start-Ups Aligning Sales Force Behavior and Changing Strategy Directions, Sales Compensation Plans...

Resources - Start-up Companies Here you will find powerpoint presentations, micro-learning videos and further information sources. Sources and Methods of Financing a Start-up Company or Small Business Finance, Start-up Financing, Small Business, SME, Bootstrapping, Equity Capital, Debt Capital, Venture Capital...   Establishing an Innovative Social Enterprise Social Entrepreneurship, Entrepreneurial Organization...   Entrepreneurial Finance: Sources Of Funding Financing New Ventures, Start-up Financing, Equity Financing, Debt Financing, Venture Capital, Entrepreneurship...   Business Valuation | Company Valuation | Firm Valuation Business Analysis, Company Analysis | Firm Analysis...   Preparing a Feasibility Study Feasibility Analysis...     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

Return to Management Hub: Change & Organization  |  Finance & Investing  |  Strategy

More on Management  |  Return to Management Dictionary  | 

This ends our Start-up Company summary and forum.