A start-up is a business like no other. Innovative, it has significant development potential. In the vast majority of cases, start-ups position themselves in sectors of activity such as new technologies or the web. What is a start-up? How does this company stand out? How does it work? Explanations.
A start-up is a young innovative company that evolves in contemporary sectors such as new information and communication technologies (NTIC). Often this activity is conducted on the Internet, but not exclusively. The term start-up is made up of two English words:start, which means to start and up, which means to increase or accelerate. We are therefore talking about a new company whose growth is rapid.
More than a company in the proper sense, a start-up has a real culture. Its identity and state of mind contribute to its success. Employees share the same values and stand out as ambassadors for their brand or their concept.
The characteristics of a start-up, or innovative company, are different from more traditional companies. Here's what sets it apart.
When creating a business, the founder(s) want long-term sustainability. This is not the case with a start-up. This company is temporary. It is not uncommon for the status of an innovative company to be only a phase and then for the company to be transformed to last. Sometimes it becomes a more traditional company, sometimes the founders launch a new start-up. In both cases, its objective is to provide a service and create value.
One of the characteristics of a start-up is to offer innovative products and services that have never been offered before. To achieve this, it is implementing an original Business Model.
A Business Model brings together the mechanisms and procedures that allow a company to generate revenue. It differs from the Business Plan which is a project study written to obtain funding and convince employees.
It should be noted that the launch of a start-up is very delicate precisely because the specificity of this company is to offer an activity that does not yet exist.
The risk-taking of start-ups is increased. In addition to the risk taking that concerns all companies when they are created, the start-up is dependent on innovation. A product or service that does not exist can appeal and be very successful. Failure is also possible because an innovation may never appeal to its target market.
Because a start-up markets a concept, it must ensure that it is reproducible or industrializable. The objective is to produce on a large scale and sometimes internationally. A good knowledge of the market is therefore essential to guarantee the success of the innovative company.
Start-ups often need significant funding to launch their activity. This budget makes it possible to recruit, to do market studies or even to launch a production. To finance a start-up, several solutions exist. Founders can:
Investors are interested in start-ups. They study the projects and finance the most ambitious in order to profit from them. Calling on them allows innovative companies to take advantage of so-called seed capital to get started with complete peace of mind. Start-ups have the particularity of having very high and above all rapid profitability, which is an advantage.
A start-up is not a legal form. It is a company that stands out for its activity and its innovative side. These companies must therefore have a statute. The most frequently encountered is the Simplified Joint Stock Company (SAS). The flexibility of this legal form appeals to business creators looking for freedom. The advantage of the SAS is that it allows you to create several types of actions. In case of fundraising, the organization is facilitated.
Each year the ranking of the 10 best start-ups is published. Some of them have become well-known companies. This is the case of Airbnb which is now used all over the world. This service allows people who wish to rent an apartment, a house or a room to a private individual anywhere in the world, or almost. It is also possible to offer a property for rent. Uber is also originally a start-up that was very successful and gave birth to Uber Eats. This meal delivery service has grown considerably during the health crisis linked to the coronavirus epidemic.
