1.  Introduction:

A company and a startup have a fundamental distinction, the company is traditional and stable company with an established organization, marketing a product or service on a perfectly identified market, its lives on the optimization of a business model from which it derives maximum profit to support its costs and remunerate its teams and shareholders.

A startup is temporary organization experiments with its business model, tests its market and evolves iteratively. The innovative nature of its offering and its economic model does not make it possible to clearly define all the components of its market, ensuring immediate profitability.

2.  Understanding Startups

2.1  What Is a Startup exactly?

The term startup refers to a project in the first stages of operations. Startups are founded by one or more entrepreneurs who want to develop a product or service for which they believe there is demand. These startups generally start with high costs and limited revenue, which is why they look for capital from a variety of sources such as venture capitalists.

Therefore, a startup as new, young, and fast-growing business venture that aims to solve a problem or meet a market need through the development of an innovative product, service, or business model. The term startup, which means starting a new business, is also associated with trying out a new activity in an emerging market with uncertain risks. Speaker Steve Blank, who is an author and authority in the field of innovation, defines it as a '' temporary organization that seeks an industrial Zable, profitable business model that facilitates growth''.

2.2  key characteristics of startups

There are some key characteristics of startups include:

1- Innovation: Startups typically focus on developing novel solutions, technologies, or approaches to address unmet needs in the market.

They often disrupt existing industries or create entirely new ones.

2 - Scalability: Startups are designed to grow rapidly and achieve a significant market presence in a short amount of time.

Their business models and operations are structured to enable scalable growth.

3 - Uncertainty and risk: Startups operate in an environment of high uncertainty, as they are often exploring uncharted territories and facing unknown challenges.

Founders and early-stage employees are willing to take on significant risks to bring their vision to life.

4 - Limited resources: Startups typically have limited financial, human, and other resources, especially in the early stages of development.

They often rely on external funding, such as venture capital, angel investments, or crowdfunding, to fuel their growth.

5 - Agility and flexibility: Startups are known for their ability to quickly adapt to changing market conditions, customer needs, and technological advancements.

They can often pivot their business models or strategies more easily than established companies.

6 - Entrepreneurial spirit: Startups are typically founded and led by passionate, innovative, and driven entrepreneurs who are committed to transforming their ideas into successful businesses.

The startup culture often fosters a collaborative, creative, and fast-paced work environment.

Startups are companies or ventures that focus on a single product or service that the founders want to bring to market. These companies typically don't have a fully developed business model and, more crucially, lack adequate capital to move onto the next phase of business. Most of these companies are initially funded by their founders.

Many startups turn to others for more funding, including family, friends, and venture capitalists. Silicon Valley is known for its strong venture capital community and is a popular destination for startups, but is also widely considered the most demanding arena.

Startups can use seed capital to invest in research and to develop their business plans. Market research helps determine the demand for a product or service, while a comprehensive business plan outlines the company's mission statement, vision, and goals, as well as management and marketing strategies.

 2.3 Special Considerations

There are a number of different factors that entrepreneurs must think of as they try to get their new business off the ground and begin operations. We've listed some of the most common ones below.

• Location

Location can make or break any business. And it's often one of the most important considerations for anyone starting up in the business world. Startups must decide whether their business is conducted online, in an office or home office, or in a store. The location depends on the product or service being offered.

For example, a technology startup selling virtual reality hardware may need a physical storefront to give customers a face-to-face demonstration of the product's complex features.

• Legal Structure

Startups need to consider what legal structure best fits their entity. A sole proprietorship is suited for a founder who is also the key employee of a business. Partnerships are a viable legal structure for businesses that consist of several people who have joint ownership, and they're also fairly straightforward to establish. Personal liability can be reduced by registering a startup as a limited liability company (LLC).

• Funding

The founders in the initial stages of business, normally finance their startups and may attempt to attract outside investment before they get off the ground. Funding sources include family and friends, venture capitalists, crowdfunding, and loans. Startups must also consider where they'll do business and their legal structure, they come with high risk as failure is very possible but they can also be very unique places to work with great benefits, a focus on innovation, and great opportunities to learn.

Startups often raise funds by turning to family and friends or by using venture capitalists. This is a group of professional investors that specialize in funding startups. Crowdfunding has become a viable way for many people to get access to the cash they need to move forward in the business process. The entrepreneur sets up a crowdfunding page online, allowing people who believe in the company to donate money.

Startups may use credit to commence their operations. A perfect credit history may allow the startup to use a line of credit as funding. This option carries the most risk, particularly if the startup is unsuccessful. Other companies choose small business loans to help fuel growth. Banks typically have several specialized options available for small businesses—a microloan is a short-term, low-interest product tailored for startups. A detailed business plan is often required in order to qualify.

2.4  Advantages and Disadvantages of Startups

There are a variety of advantages to working for a startup. More responsibility and opportunities to learn are two. As startups have fewer employees than larger, established companies, employees tend to wear many hats, working in a variety of roles, which leads to more responsibility as well as opportunities to learn.

Startups tend to be more relaxed in nature, making the workplace more of a communal experience, with flexible hours, increased employee interaction, and flexibility. Startups tend to also have better workplace benefits, such as nurseries for children, free food, and shorter workweeks.

The work at startups can also be more rewarding as innovation is welcomed and managers allow talented employees to run with ideas with little supervision.

One of the primary disadvantages of a startup is increased risk. This primarily applies to the success and longevity of a startup. New businesses need to prove themselves and raise capital before they can start turning a profit. Keeping investors happy with the startup's progress is critical. The risk of shutting down or not having enough capital to continue operations before turning a profit is ever-present.

Long hours are characteristic of startups as everyone is working toward the same goal—to see the startup succeed. This can lead to high-stress moments and sometimes compensation that isn't commensurate with the hours worked. Competition is also always high as there tend to be a handful of startups working on the same idea.

• Pros:

• More opportunities to learn

• Increased responsibility

• Flexibility

• Workplace benefits

• Innovation is encouraged

• Flexible hours

• Cons:

• Risk of failure

• Having to raise capital

• High stress

• Competitive business environment

• Some example of the famous start ups

Well-known startups include tech companies like Google, Amazon, and Facebook, as well as disruptive businesses in various sectors, such as Airbnb (hospitality), Uber (transportation), and Stripe (financial services), Dotcoms were a common startup in the 1990s. Venture capital was extremely easy to obtain during this time due to a frenzy among investors to speculate on the emergence of these new businesses. Unfortunately, most of these internet startups eventually went bust due to major flaws in their business plans, such as lacking a path to sustainable revenue. However, a handful of companies survived when the dotcom bubble burst. Amazon (AMZN) and eBay (EBAY) are just two examples.

Many startups fail within the first few years. That's why this initial period is important. Entrepreneurs need to find money, create a business model and business plan, hire key personnel, work out intricate details such as equity stakes for partners and investors, and plan for the long run. Many of today's most successful companies—Microsoft (MSFT), Apple (AAPL), and Meta (META), formerly Facebook, to name a few—began as startups and ended up becoming publicly traded companies.

3. The startup ecosystem

The startup ecosystem has become increasingly vibrant and globally interconnected, with hubs of innovation emerging in cities around the world, supported by a range of accelerators, incubators, and venture capital firms.

Startups are disrupting an established order. If previously the power of large companies rested on their financial capacity to absorb smaller ones, today it is no longer size that counts but speed and capacity to adapt. This is the strength of startups.

3.1  The 3 conditions to be a startup

Capturing all the value of a market and acquiring a dominant position in it is the ambition of the startup.

Although the creators may not have intended this when they started the adventure, the startup, always has the intention of thinking big, eventually. To put it succinctly, the startup is trying to find a way to make their work profitable in the long term and, more importantly, to exponentially increase their revenue to achieve the maturity of a large company.

Whatever its sector of activity ( digital , cleantech , biotech , edtech , fintech , collaborative economy , etc.), it is neither seniority nor size that makes a company a startup, but the 3 following conditions:

- The prospect of strong growth.

- The use of new technology.

- The need for significant funding.

3.2  How Do You Start a Startup Company?

The first step in starting a startup is having a great idea. From there, market research is the next step to determine how feasible the idea is and what the current marketplace looks like for your idea. After the market research, creating a business plan that outlines your company structure, goals, mission, values, and objectives, is the next step.

One of the most important steps is obtaining funding. This can come from savings, friends, family, investors, or a loan. After raising funds, make sure you've done all the correct legal and paperwork. This means registering your business and obtaining any required licenses or permits. After this, establish a business location. From there, create an advertising plan to attract customers, establish a customer base, and adapt as your business grows.

3.3 How Do You Get a Startup Business Loan?

A startup can obtain a loan from a bank, certain organizations, or friends and family. One of the best and first options should be working with the Small Business support, Administration, which provides microloans to small businesses. The average SBSA loan is $3,000 and the max loan amount is $50,000. These loans are usually from nonprofit community lenders and can be easier to obtain than traditional loans from banks.

3.4  What Are the Benefits of Working for a Startup?

The benefits of working at a startup include greater opportunities to learn, increased responsibility, flexible work hours, a relaxed work environment, increased employee interaction, good workplace benefits, and innovation.

3.5  How Do You Value a Startup Company?

Valuing a startup can be difficult as startups don't usually have longevity in which to determine their success. Startups also don't generate profits or even revenue for a few years after starting. As such, using the traditional financial statement metrics for valuations doesn't apply. Some of the best ways to value a startup include the cost to duplicate, market multiples, discounted cash flow, and valuation stage.

4.  Startup: an intermediate step before becoming a business

At the end of the experimental phase, the startup finds itself faced with several options:

- Become a traditional business with an established business model

- Being absorbed by a larger company

- Cease its activity due to lack of cash flow.

A company that is growing is characterised by a significant increase in its performance in terms of activity, turnover, or market share. This type of company is notable for its ability to adjust to new market trends while innovating and diversifying.

4.1  The necessary elements to transform the startup into a growth company:

1 - The team and the network: a startup is above all a determined, ambitious and complementary team. But it is also a personal network of experts who will be able to provide support during key elements of its development.

2 - The offer and the economic model: the innovative nature of the product, service or economic model is preponderant. It must ultimately enable you to gain a competitive advantage. In addition, the deployment of the activity must guarantee economies of scale. 

3 - The market and strategy: the size and trend of the market - whether niche or mass - must reveal considerable potential in terms of revenue. 

4 - Good “scalability”: its business model must be able to adapt to a strong change in its volume of activity. A startup with good scalability will be able to see its turnover multiply by 10 or 20 while strengthening its profitability.

 5 - Strong attraction: To develop its growth, the startup will need to attract as many users as possible and get people talking about the company and its activity.

4.2  The 4 Conditions for the success of your startup

1. Test your market

You will need to go through a testing phase (known as Lean Startup) and conduct research to fully understand the environment and target audience associated with your offer.
To do this, you must test your product/service, even not finalized, with a sample of potential customers.

It is an iterative process allowing you to improve your offer in real time and to overcome the uncertainty inherent in any innovative project as well as the more substantial expenses generated by an irrelevant finished product

 This method therefore allows you to:

Collect as much information as possible to improve your product, technology or business model.

Test your hypotheses and iterate until you find the product that works best on the market.

2. Be ready to evolve your business model

Startups often start with an initial business model but ultimately find success with a completely different economic model. The pivot is what we call it.

The pivot is a change in technology, product, customer target, or distribution method. The initial business model will be affected by changing only one of these variables, with all the structural consequences that follow.

Being a startup means constantly searching for ways to optimize its current business model.

3. Rethink your relationship with failure

Even if mentalities have evolved a lot in recent years, we say "take a risk" in France when we create a business while the English expression is "Take a chance". That says a lot.

As mentioned previously, the search for innovation involves an approach made up of beta tests and therefore failures. An essential phase to stand out from your competitors with the best product/service. Failure is therefore a stage for the growth of your startup which must be planned for in your business plan. It's up to you to set your limits by determining the budget, deadlines and number of tests planned.

4. Learn from your mistakes

The evolution of your economic model  will have already provided a large number of indicators on the new directions to take. We learn a lot from our mistakes! Trials and tests allow you to identify gray areas and areas for improvement in your product and/or business model. Customer feedback, often carried out in real time, also feeds your thinking to further shape your product or service.

4.3  What do you need to know before getting started?

Before getting started with any project, there are several key things you need to know to ensure a successful outcome. Here are the main considerations:

• Project Goals and Objectives:

Clearly define the project's primary goals, objectives, and expected outcomes.

Ensure that the goals are specific, measurable, achievable, relevant, and time-bound (SMART).

Understand how the project aligns with the organization's overall strategic priorities.

• Scope and Requirements:

Thoroughly document the project's scope, including the in-scope and out-of-scope elements.

Gather and validate the project's functional and non-functional requirements from stakeholders.

Establish a clear understanding of the project's boundaries and any potential constraints.

• Stakeholder Identification and Management:

Identify all the stakeholders, both internal and external, who will be impacted by or involved in the project.

Understand their respective roles, interests, and influence levels.

Develop a stakeholder management plan to effectively engage and communicate with them throughout the project.

• Project Timeline and Milestones:

Develop a detailed project schedule that includes key milestones, deliverables, and dependencies.

Ensure the timeline is realistic and accounts for any potential delays or unforeseen events.

Identify critical path activities and prioritize them accordingly.

• Budget and Resource Allocation:

Determine the project's budget, including both direct and indirect costs.

Identify the required human resources, equipment, and other assets necessary for successful project execution.

Allocate resources based on the project's needs and ensure their availability.

• Risk Assessment and Mitigation:

Conduct a thorough risk assessment to identify potential threats, uncertainties, and opportunities.

Develop risk mitigation strategies and contingency plans to address identified risks.

Establish a risk management process to monitor and respond to risks as they arise.

• Project Methodology and Approach:

Decide on the most appropriate project management methodology, such as Agile, Waterfall, or a hybrid approach.

Ensure the chosen methodology aligns with the project's complexity, stakeholder preferences, and organizational culture.

Define the project's workflow, communication channels, and decision-making processes.

• Organizational Readiness and Support:

Assess the organization's readiness and capacity to undertake the project.

Ensure that the necessary infrastructure, systems, and support mechanisms are in place.

Secure buy-in and commitment from senior leadership and key stakeholders.

• Performance Measurement and Reporting:

-          Establish key performance indicators (KPIs) and metrics to measure the project's progress and success.

-          Determine the frequency and format of project status reports and updates.

-          Implement a project monitoring and control system to track the project's performance against the plan.

-          Develop a change management process to address any scope changes, modifications, or deviations.

-          Incorporate feedback loops and continuous improvement mechanisms to optimize the project's execution.

-          Identify and document lessons learned to enhance future project development efforts.

-          By thoroughly considering these 10 key aspects before starting a project, you can increase the chances of successful project development, implementation, and delivery in 2024.

5.  In conclusion

Creating a company can be a difficult but rewarding project. Having a great idea and trying to bring it to the market comes with a range of challenges, such as attracting capital, employees, marketing, legal work and financial management. Keep in mind, however, that startups lead to increased job satisfaction and the possibility of achieving a wealth of material stability and leaving a legacy for your sons.

Compete without risk. Put your skills on the line. Use your relationships to enter the market. Compete with thousands of young people like you and trade experiences and ideas on your way to the top! Find deals in a nearby environment before you start risking your money in expanding your business. Practice integrated strategies in developing and marketing so that when you are ready to enter the wider market, you have the practice you need.

Note: The first few years are very important for startups. This is when entrepreneurs should use it to realize their dreams.