No, not every new company is a startup because not every company brings something new to market. The goal of a startup is dynamic growth based on a developed product, service or solution. Besides, such a business is not free from experimentation and risk of success. In case of success, it must be able to grow further. All these elements must come together in your business to be able to talk about a startup. Read the article and find out if every new company is a startup.
Innovation
To call your business a startup you must offer an innovative product, solution or service. They must be exploratory and previously unknown to consumers. If your company is a copycat or a newer version of your competitors then most likely the definition of a startup doesn’t fit your business. Try thinking about your business idea again. Maybe focusing on a niche, on problems that can be solved in your industry will lead you to an idea for a great startup.
Is every new business a startup? – Risk and experimentation
A very important element is the philosophy behind a startup. The risk is whether the service will be accepted in the market and be a hit or if it will go unnoticed and turn out to be a failure. The risk is due to the lack of competition in the market and thus you cannot predict the demand response or the success of the venture. Research shows that 90% of tech startups fail within 1-2 years of operation and only 2% will succeed.
Is every new company a startup? – Scalability
For a business to succeed, it must have the ability to transform from a small idea into a large long-term project. It is important that it can grow on many levels. Each stage of development should be prepared in the best possible way to avoid unnecessary losses, and even more to avoid the outflow of customers. For this purpose, it is advisable to prepare a plan at the very start, in which you take into account the potential growth and the costs associated with it.