What is a Startup | Valuation | Startup Business Model & Plans
Well, today is 21st Dec 2019 startup industries are emerging rapidly, receiving millions of investments from all over the world. We are here to provide you with a one-stop solution for your needs regarding Startup Business Model Plans:
- What is a startup?
- Startup Technical Terms
- Startup Business Model, Revenue Model, Emerging Factors, Possible Challenges, Startup Planning and others
- Problem Solving Approach
A. What is a Startup Business Model Planning?
Tick off on the list for everything you relate to right now, like a desk job holder, as you read the following text:
- You daydream about being your own boss? Not having anyone order you around and give you instructions.
- Stuck with zero personal growth? Stand redundant on the grounds of personal and technical development?
- New, fresh and buzzing ideas that you believe can change the life of consumers but are in a strict working space that allows no innovation or worst, allows innovation but with boundaries?
- Regular 9 to 5 job is making you feel blue to the bones?
- Not afraid to hustle like there is no tomorrow?
Well, if you ticked off all the above, congratulations! You most definitely are ready to focus on your career as an entrepreneur. The said are the top 5 reasons many able and talented people in multinational companies leave their jobs to work for something they truly believe in. No wonder why they succeed in a startup business model planning.
So let’s clear the:
- Ever-mysterious definition of start-ups.
- What are they really?
- Why Startups?
- Perfect Startups Business Model Plans
A startup is the living embodiment of a founder’s dream, by the CEO of startup.co, Will Schroter.
On a more fundamental side of its working, a startup working model planning is the initial phase of a company designed to reach new heights. The major difference between entrepreneurship and startups is that when a startup is worked upon, they design it for the long term and to be functioning as a company. However, entrepreneurship doesn’t include any business vision of the company or business that is being run; the entrepreneur is content with the business being small scale.
B. Boost in Internet-Based Startups Business Model Plans:
Few remember the “dotcom bubble” of the 1990s. Having “burst” in late 2011 to early 2002, only a few remained in the market like Amazon and Facebook, eBay, etc. It was a time for an increase in investment in internet-based companies which fueled the stock equity valuations for the same. Startups much like any other lost piece of a puzzle solve a lot of problems occurring in real-time all around the world to develop startup ideas.
C. Solving Problems, Establishing a Startup Business Model Plans:
- First and foremost, they solve problems. It is the most fundamental criterion for running a startup and establishing a Startup Business Model Plan. Every founder’s journey starts with them realizing the need for a certain commodity that doesn’t exist in the market and thus works to bring it as a service for use in the best and the most affordable way possible. This concept of startups business model planning has developed solutions for a lot of problems too big for the multinational giants but was too deep in society to be brooding.
Example: Startup Business Model Plan of Rapido, Bounce, Vogo, Yulu solve bike rental problem | Rivigo, Delhivery solve the logistics problem | Udaan connects B2B businesses and we can see many other examples around us. Hence people’s problem-solution approach helps them in planning a startup working model.
- They give a more personalized experience to their customers as they have a smaller customer base to deal with. A gradual increase in their user base can give them enough advantage to skillfully grow.
- A small scale company has a lesser workforce. Training them and having them shift to new and latest tech is much simpler and easier to accomplish. Startup business model planning is hence more adaptive to the upcoming technological advancements in the industry. These criteria for shutting companies down is not what holds start-ups back.
- There is a very visible change in the ways people tackle problems. Traditional and obsolete methods facing tough challenges from technology-based startups.
D. Startups Working Model Planning at a glance:
The major problem with startups and startup business plans when they originally launch their idea to the world is to keep functioning with the minimum equipment and manpower possible. It is like running the car on barely any fuel. So how do they survive? What are the tactics one can apply in real life to have their business idea running?
- The most prominent problem with startups Business Plans and startup business models all over the world is funding. Silicon Valley (Banglore, India) prides itself on being the birthplace for the best startups of the world and the sole reason is that funding giants hail from different parts of the world to invest in different potentially explosive startups. To keep the funds running for the product or service to be available is a necessity that is often taken care of by crowd-sourcing or crowdfunding for the company after pitching their ideas to the public.
- To source, good engineers are basically to make an efficient working engine for the company to function on. The tech behind a company helps it a long way in the years to come which is a crucial part of the startup working model.
- Although a lot of companies function online, their hardware is to be installed in a location that maintains privacy and security. It is necessary to preserve data as a commodity.
- The start-up fundamentally is adaptive in nature. But to work, it has to be adaptive outwardly, and not just inwardly. To learn the needs of the users and work with the feedbacks of the customer base is the goldmine to being the best in the business.
- And lastly, future vision. To have a vision is to know the three W’s – Who is going to be the part of this startup, what is this company doing and lastly, where is it headed to?
E. Important Personals in a Startup Working Model & Planning:
The journey of a startup is a game of chess; one cannot play it without the pieces in the right place. Every role is necessary, they design it for the smooth functioning of the process of a service or a product, based on the company.
Important Designation in Startup: CEO
CEO, the one with the vision
A CEO, as opposed to the general concept of it, doesn’t make the most money, especially when the company has just started functioning. They hold the vision of the company as a market base as they were the match that lit the fire of an idea. We can term them as the “jack of all trades” since the CEOs of this generation all hail, mostly, from some form technical background which allows them to freely roam from coding to business to marketing to be the face of the company. They guide the entire team as a mentor, on all occasions.
Being a CEO is no joke, it is, indeed, all business. Strong behavioral conduct is extremely necessary.
l They have to have people’s skills.
l To keep the team focused and motivated.
l Be good at strategic planning.
l Has to be good at making long term decisions.
l But most importantly, shouldn’t stop believing in the company.
Crucial Peoples for Startups: Investors
Investors, someone has to know about money
Money, as we know, runs the world currently. Where there is money, there is development, and that is where the investors step in. A smooth mix of street smart and economics major, some of them being this deadly combo, they handle money better than the majority of the people thus contribute towards the growth of startup business plans.
They help in running the startup business model, primarily by providing capital enough to run the company efficiently. On the hind side, they help the company members form an efficient startup business plan as they know the know-how of this industry, having invested in so long. They help in long-term investment planning.
Since a lot of investors in the market today are from technical backgrounds, much like the other role bearers, they offer helpful tips in terms of efficient distribution of the funding within the company departments.
There are multiple types of investors, each suiting specific kind of investment needed for the company:
A. Banks, which offer generic loans to people after submission of proof of the company and its authenticity;
B. Peer-to-Peer lenders, which only offer loans to small businesses;
C. Venture capitalists, which only invest large amounts of money in companies that have survived the market for some time and have proved worthy of the money;
D. Personal investors which included friends and family members investing in your business.
Hidden Talent of Startup Working Model & Planning- Writers
Writers, word ninjas
We give very little credit to writers, but it is them, which allows the company to actually communicate, hence play an important role in startup business model planning and success. The specific roles of the writers include:
- Technical writers require their expertise to be put to use when documentation of processes or meetings take place; brochure designing; manual writing for employees or the investors has to be designed, etc
- Creative writers need to come up with new and exciting content as a part of online marketing and blogging from the company.
- They need to understand the product and the company’s vision so as to fully inculcate the image of the creator’s mind into the message to be put forth in front of the consumers.
- The designing of the company’s policy and the contracts is a meticulous task that needs to be done with scrutinizing focus, taking care of all aspects of the company’s needs and requirements.
Popular Content Writing Training: Write like a pro
The backbone of Startup Business Plans: CMO
CMO, sales magician
Certain CMO responsibilities include:
l To gain a user base and understand what segment of the product or service is working in favor of the company and which segment isn’t.
l They are responsible for the marketing of the company as a whole and driving demand towards the product.
Responsible for the client retention: CSM
CSM, start up’s happy person
A customer success manager or CSM is a relatively new role in this industry. Since companies rarely have capital enough to invest in customer support, it isn’t too big of news when it is mentioned that CSMs spend almost half their time answering queries for the users. They help with word of mouth advertisement and smooth transition of the customer to the sales team.
Bring AI * ML = Success in startups: CTO
CTO, “THE” right-hand man
Every king needs a consultant, especially in this business. They are the right-hand men of the CEO of the startup. Since they come from a technical background of working, they often seem to travel to different parts of the company at the inception. They work in the development team as one of the initial coders, they also work in the marketing team or as a spokesperson in places where the CEO cannot speak. They also help in designing of the revenue model of the firm.
F. Important terms in Startups Business Model & Plans
To ask for a certain kind of investment; or to be able to advertise a certain type of start-up; or to be able to put forth policy with certain requirements, all have one thing in common – use of technically correct words. To survive this industry, one must know the lingo entrepreneurs use to manage their way around.
10 unique startup terms:
Any company that holds a valuation of over 1 billion USD is called a unicorn company.
A B2B company is a start-up or business model that runs on connections between business to businesses. They communicate amongst themselves and are hence, each other’s customers. A good example of a B2B platform is Udaan.
A B2C company or start-up works exactly similar to a B2B company except that the communication takes place between businesses and customers on a platform. The greatest functioning example is Amazon.
Letter of Intent is a policy or contract which holds all details regarding both parties, that is, the investor and company.
Pivot, much like the physical use of the word, is a term used when a company while working on a product, changes completely, its path which affects its future working, products and revenue model. They often bring this change about when the company wants to venture into a different direction, as a whole.
A minimum viable product is the base trace on which an artist paints and shades. The idea is to create the most basic version of the visionary product and make it free of cost. This brings in more customers. Upon a significant amount of users, the company sells the extra features by updates.
What’s a medical term doing in the field of IT, you ask? Well, much like the biological term, the incubator is a place that allows startups to stay in their budding stage and helps with expert guidance and funding opportunities.
We use mainly this strategy to keep the users in the loop by making the UI more interactive with the placement of games, for example, the dinosaur game on the google page.
Assets are capitalistic or materialistic properties of the company that holds them at an advantage over the other companies.
Low Hanging Units
Any goal that is an easy target for the startup is called a low hanging fruit. These are essential to grasp at the early stage of the company’s journey to reach ultimate goals faster.
G. Types of Startup Business Model and Startup Business Plans
For years, people have been confused about what startups are and why they are fundamentally different from businesses. Most people don’t realize that startups’ business model is more adaptive to the world and its behavior while small businesses mostly work on a fixed business model. To know what kind of startups are in this world of businesses, we must first know why exactly do we need to know the types of startup business models.
- To invest in them accordingly.
- Plan the business model accordingly.
- Advertise accordingly
6 Types of Startup Business Model & Business Plans
These are the type of startup who leave their jobs for being their own boss but still do not wish to be tied down. They work as freelance coders who are hired temporarily and work in different settings at their own discretion.
Small Business start-ups
Small business types of startups have no vision and are mostly functional because they sustain the family running the same. They are mostly small shops of vendors who sell daily use materials like stationery and books, etc.
A flexible startup that can either run on a small scale to sustain the family behind the working of the startup or can function to be a large scale startup, if given sufficient funds are called scalable startups. These do not have a detailed business model.
Their vision is towards their company is the short term rather long term. Build it and Sell it is their business model.
Large scale startups
All startups that worked from small garages reaching skyscrapers as of today fall into this category. These include big names like Amazon, Facebook, eBay, etc. They have the most successful startup revenue and business models in the world.
Any social event that takes place by a company that holds these for, mostly, a noble cause falls under this section of startups. Gathering like these mostly are a source of crowdfunding.
H. Startup Business Plan | Business Problem-Solution Approach:
The world is full of problems and we are scrambling around for solutions. The only prominent skill that we, as a generation, are trying to hone is problem-solving, which can possibly lead us to an efficient functioning society.
To be able to solve problems and make a business out of it, entrepreneurs need to think smart, not just hard. Solving a personal problem faced by the entrepreneur themselves might lead to a solution for a number of people just like them out there, thus creating a customer base. This is the impact of globalization that we see as this generation, bringing solutions to our doorstep with a click on an application.
Although, an entrepreneur needs to not just solve a personal problem and make a niche market for that because it retards growth. A personal problem could manifest into a net of required solutions, in which case, the company could ascend to newer heights, otherwise, the consumer base would either remain the same or would slowly decrease.
Problem-solving – two very easy sounding words but when put together, create a multi-step, ginormous task to create a sustainable platform providing a solution to a crippling problem.
Startup Business Problem Solution Approach: 1
The idea is always out there and all we need to look. On better screening of everyday lives, an entrepreneur may come up with a problem to solve, an idea to begin the work with thus bringing the startup company problem-solution approach in developing the startup ideas.
Business Problem Solution Approach- 2
Break it down
Every idea is a tree that needs to be chopped off at the base. Hence the branches are weeded out first. The break down of the problem at hand is important as it helps with the process of focusing on different aspects of the problem which are problems within themselves.
Developing startup idea via startup problem solution- 3
All good things to those who wait but better things to those who learn. Listening to the surroundings and gaining information from sources in case the problem is severe and untapped. At times, new ideas have to be implemented as a team and not everyone can be well versed with everything. In addition, it is necessary for the entrepreneur to be well-educated about the problem they are about to take upon themselves to solve which will help in developing the startup idea.
Bringing If & But to test the Startup Business Model – 4
Trying until you succeed is something that is very necessary but has to be done smartly. Different approaches and techniques need to be implemented in order to efficiently find a solution.
Bring some experienced folks to fetch solution of business problems: 5
Talk for collaborations
It isn’t a shame to not be able to solve a humongous problem that has everyone in shackles. Hence, instead of being stuck up on a certain part of a bigger mess, it is wiser to seek help, perhaps from other companies to import engineers to seek advice, help and along the way, some coaching.