A startup in business refers to a newly established company or organisation that is in the early stages of its development. Startups are typically characterised by their focus on creating and scaling innovative products, services, or technologies to address a specific market need or problem. These companies often operate in dynamic and rapidly evolving industries, and they usually have a high growth potential.
Unlike traditional small businesses, startups are designed with the intent of achieving rapid growth and scaling their operations. This is often accompanied by the pursuit of significant market share and potentially global expansion.
Since startups are newly established, they have a limited operating history. This means they may not have a track record of financial performance or established customer base.
Startups typically operate with lean teams and resources, seeking to accomplish as much as possible with limited capital. They often prioritise efficiency and cost-effectiveness. Furthermore, startups aim to create business models that can be scaled quickly and efficiently. This means that the potential for growth is a fundamental consideration in their strategy.
Startups often employ an iterative approach to product development and business strategy. They build, measure, and learn from customer feedback to refine their offerings and business models.