What Is a Startup? Why Is It Different From Companies?
A startup is simply a new company; a business has been developed and focuses on one unique product bringing it to the market and making it irreplaceable for customers. However, for the last five years, many business schools around the world have come up with a different academic definition of what a startup truly is.
The true definition of a 'startup' is a temporary organization designed to look for a business model that is repeatable and scalable.
On the other side, a company is a permanent organization designed to execute a business model that is repeatable and scalable.
I have seen hundreds of startup pitches for their business. I live and breathe the art of business. and if there is one thing I see prominent that is convenience power. There are some famous companies such as Amazon, and Prime Now, many more are providing products and services that can save you TIME.
There are famous companies such as Amazon, Prime Now, Zomato, Swiggy, etcetera. The products and services they are providing save your TIME going to win because time is an asset for everyone. They simplified the process of buying and selling. Plus, save you a precious amount of time.
AI and ChatGPT which is the big buzzword lately. it is an important technology because it saves your time, helps you to give everything in one place, and make your work less arduous. Still, it is evolving and can learn which might take much longer.
Virtual assistants save you time. Google Now and Siri save you time. Text messages save you time. Double-clicking on a photo to like it and acknowledge someone saves you time. Emojis saved you time. Misspelling something on purpose and having auto-correct saves you time. Abbreviations save you time.
So this is important because it’s the one commodity you can’t get more of. No matter where you are or what your economic situation is, you will never have more time. It’s why we as humans will do anything to purchase it. It’s why we choose the $24 Uber instead of walking. It’s why we pay $7 extra for delivery. It’s why we pay $500 to fly instead of drive. It’s all about time.
It is crucial to know that no matter where you are or what your economic situation is, you will never have more time. That is the reason we as humans will do anything to purchase it if you save your time. We give extra money to Uber instead of walking extra miles, Why were pay to fly instead of just driving?
IT'S ALL ABOUT TIME
It’s one of the biggest market advantages you can possibly create. Uber saves you TIME. Amazon saves you TIME. GrubHub and Seamless and Doordash save you TIME. It’s why they won.
So if you’re a startup or business operating in the CPG or consumer space, or you are launching a new company, product, or service, you should be considering how you can save people time. How does your product, your business, or your service expedite a market experience that used to be tedious for all?
If you can do this, and execute, you are going to have a good chance.
So, if you are a startup or launching a small business operating in the CPG or consumer space, or you are launching a company, your product or service must be considering how you can save your customers time. If you can do this, and execute, you are going to get a new chance to win but, but, but...consistency and persistence are the keys to unlocking the door.
I mean, if you’re a 4-year-old that knows how to search for the videos you want on Youtube Kids. Why ever learn to read?
It’s just the truth. So if you are trying to create a competitive advantage, you should start thinking about SPEED and CONVENIENCE as the two things that will help you succeed.
Important above all, Too many people focus on shipping a technical iteration or adding features to a product that only complicates the experience.
Here is the thing:
Steps of the Scientific Method — Sciencebuddies.org The Lean Start-up Methodology — Eric RiesThis is why startups that experiment quickly have higher chances of success. Why? Because they rapidly gain knowledge of the keys to their business model which allows them to decrease their risk as early as possible.
Sam AltmanWhat are the most important aspects you should experiment (and validate) with while launching your startup? Steve Blank believes it is most valuable to focus on “customer discovery” and “customer validation,” also known as “Product/Market fit.” To better understand these terms, you can watch this 2-minute video, as the goal of this post is rather to focus on the definition and nature of a startup.
Ultimately, with this definition, a ‘startup’ does not necessarily entail tech innovation or invention; it is centred on new “business models.” It doesn’t even mention the word “technology.” My favourite non-tech startup appeared in the US back in the 1950s in the restaurant industry. Its founders looked for a new business model that was repeatable and scalable. It has then become one of the largest companies in the world: Mcdonald's. If you are curious about its history, I recommend that you watch the movie, “The Founder.”
