Question

1.Define Startup
2.list down the phases in startup
3.critical factors that are important for new venture assessment
4. four advantages and disadvantages of startup

Answer 1

1. STARTUP

We can simply define a startup as a young company which is beginning to develop.It offers a product or service that is not currently being offered elsewhere in the market.At beginning startups are not profit centric, then how they grow?, they have huge fund which will be collected either from their relatives or venture capitalists or their own and aim at solving a problem efficiently through innovative ideas. They act as professionals at the very beginning and will hire best quality employees. They make use of the technology and data at a wide range. As their decisions are data driven, the possibility of error is wiped out. Each and every actions of a startup are well defined by a Standard Operating Procedures (SOP). Each startup think very big more than a business and aim not only to make profit but also to build fame, growth, success. Thus we can say that startup has many differences from an ordinary business.

2. PHASES IN STARTUP

1. Pre-seed stage -This is the stage at which we generate the idea. Here we understand the problem in the market and frame how your idea can provide an unique solution through innovations.Your unique solutions should meet the expectations of stakeholders, customers, non government organizations.
2. Seed stage - In this stage your company start to execute against your idea Here you develop a minimum viable product. You may not be able to grow very fast but can start to do something to initiate the growth.
3. Early stage - This phase is commonly known as series A.Here your company has switched on the growth mode and entered into execution.Here the company start to develop fame, growth and success.

3. CRITICAL FACTORS FOR NEW VENTURE ASSESSMENT

The following are critical facturs influencing new venture assessment:

• Venture uniqueness-It is the the length of the time a non routine business remain non routine.
• Investment-It is the extent and timing of funds needed to move through the venture process.
• Growth of sales-It is the anticipated growth pattern of new venture sales and profit.
• Product availability-It is the availability of product during the startup phases.
• Customer availability-It is the nature of customers and their buying habits.

4. ADVANTAGES AND DISADVANTAGES OF A STARTUP

ADVANTAGES:

1. Agility- as startups are innovative and make maximum utilization of technology the are competent enough to face challenges.
2. Efficiency- startup aims at providing their services effectively and efficiently and they are not profit centric.
3. Team culture- employees work together to achieve the mission vision as goals and they are attracted by prestige and big salaries.
4. Personalization- startups provide goods and services with a personal touch, this provides a unique personal experience to its customers.
5. Versatility- startups gathers maximum data and the actions done by them will be free from errors.
6. Flexibility- startups can be worked at a place, time, and in the manner which suites you.
7. Fun- working with startup could be having lot more fun.

DISADVANTAGES:

1. Risk- as startups require large amount of fund it will have more risk.
2. Compensation- the rewards in startup may not me gained as expected.
3. Market access- startup need new customers, in fact it is very difficult to gain new customers than to retain old ones.
4. Team composition- the team should be highly bound with team corporation, the founder should select such a team which is capable of attaining corporation.
5. Resources- startups should be accompanied with huge resources to compete its competitors and to get success but most startups have lack of resources.
6. Processes- startups requires a well defined operational procedures but it is not present in most startups.
7. Stress- startups though it have fun the stress exist in abundance.