Question

Explain the characteristics of fast-growth startups:

1- Rely on team effort

2- Headed by people with experience in the line of work

3- Led by people who have started other businesses

4- Generate profitable revenues for the owners

5- Use new technology for competitive advantage

6- Have appropriate financing and exit strategies

Answer 1

Explain the characteristics of fast-growth startups:

1- Rely on team effort: One important characteristic for the fast growth starups is to rely and give importance of the team effort. Higher level of growth can be achieved by making the cohesiveness and team work thrive. Instead of individual efforts, more efforts should be put on the team effort as collaboration helps to achieve better results.

2- Headed by people with experience in the line of work: A fast growth for the startup has bettee better chances of winning and achieveing success when the same business is leaded by an experienced person instead of an inexperiened one. The experienced person helps in giving the right direction and growth to the company with his knowledge and the effective domain.

3- Led by people who have started other businesses: A fast growing startup would also achieve a better rate of success if the people who are leading the same have also started other businesses. This helps the leader to gain more experience and also the understanding about the market and the industry where the another business could thrive for the performance.

4- Generate profitable revenues for the owners: The fast growth startup would show an effective characteristic for generating profitable revenues for the owners. Being it the partners, sole owner or the shareholders, profitable revenues are being generated instead of losses showing how efficient is the rate of growth.

5- Use new technology for competitive advantage: One more characteristic of an effective and fast startup business would be the use of new technology as the competitive advantage. One can also learn from the example of Nokia as it didn't match the technological changes and thus was out from the industry. It is important to change and use the newest technology for remaining higher in the business.

6- Have appropriate financing and exit strategies: At last, a fast growing startup should always be having effective and accurate no. of financial sources and strategies to work on and get their finance with also the effective exit strategies where the company could even quit and change the business idea without even incurring massive losses.