Along with the general development of socio-economic sectors, the demand for a quality life of people is increasing. Therefore, it is easy to see that many young people today are starting to start their own businesses in all fields, also known as Startups. This emergence of the need to start a business entails a lot of problems that young people have to solve quickly and effectively by themselves. Answer with VSM what is Startup? As well as the right characteristics of Startup that young people need to build for themselves.

Startup

Learn about startup
Learn about startup

What is

Startup is an extremely familiar term in the past few years when Vietnam’s socio-economic development has made new leaps and bounds. However, what exactly is the concept of Startup? As well as how to classify Startup, surely not everyone understands. Let VSM accompany you to learn the concept of this economic term.

Concept

What is Startup concept?
What is Startup concept?

What is Startup? Startup, also known as Start-up, is an economic term used to refer to individuals, companies and organizations in the first stage of starting a business, also known as the start-up process. Startup can also be understood in a different way, that is, individuals, organizations or companies are setting out ambitions to innovate a pre-existing business field or line so that it develops faster and stronger. .

Common types of startups

What is Startup? There are many different definitions to understand, but in general, the characteristics of Startup we can divide it into 5 groups based on business fields. Specifically:

Startup lifestyle

This can be a pretty startup model chosen by young people because it contains more difficulties than other startups. This is the way to start a business when individuals and entrepreneurs choose to make money based on building, spreading soft skills and passion to everyone.

Lifestyle Startup
Startup lifestyle

With a lifestyle startup, entrepreneurs can take advantage of their own knowledge, experience and skills to make available capital. And especially should use internet communication to introduce to more customers. The tribute-style startups can be writers, novelists who write books, write stories to make money; youtubers; artist; psychological and financial consultants; programmer,…

Unlike the lifestyle startup, the small and medium business startup style is quite popular. Maybe you choose to build a hair salon, a beauty spa, a restaurant, a cafe, a printing factory, a sculpture studio, a travel agency, air tickets, insurance, etc.

The main source of capital for them to start this business model is the financial source that they save themselves, invested by their family, borrowed by themselves or borrowed from a bank. They want to own the company, the business themselves, not others to take over them or share the source of profits.

This startup model is chosen by many people but not too many advantages but extremely difficult. The most obvious difficulty is the extremely fierce level of competition.

Social Entrepreneurship

This is a startup model that has an extremely strong impact on life, most of which have a positive impact. Unlike other types of startup models, with Social Startup its main purpose is to change society in a positive way. And for those who choose this model, they must think that the high profit received is extremely small.

Startup Scalable

What is Startup? In the models called Startup, open-ended startup is considered the most prominent Startup name today because the field it targets is technology for modern life.

Their ideas, models as well as their scale are extremely new, groundbreaking and risky. That idea could attract billions of people and potentially generate a dollar-denominated profit. They must be people with solid knowledge, passion and must build the most elite team.

Affordable startups

The last Startup model we introduce to you in today’s article is the one that startups can buy by the “giants” of the economy.

Available startups
Startup companies can afford it

According to statistics, this is the most successful startup model today. It has characteristics that you can easily see such as small unknown market; be added large enterprises; …

So above, VSM has shared with you the most basic characteristics of 5 popular Startup models today. Each model has its own pros and cons and it needs its own ecosystem. Understanding each Startup model will be the first step to help you succeed in the next steps in your startup process.

Real Startup Features

What is a startup, VSM has shared it most fully for you. However, what is the characteristic of Startup is the problem that VSM realizes that many customers are misinterpreting. Let’s explore with VSM what are the characteristics of Startup.

Startup Features
Startup Features

Startup breakthrough

Start-up companies, individuals and organizations, even though they come from a small group or small field, must be different from that field so far. They have to create new solutions that appear for the first time in the market to attract consumers. If they go the old way, it will be difficult to compete and may have to go bankrupt in the first place.

Startup has tremendous growth

In any business, the ultimate goal is to make a profit. Therefore, when establishing startups, they often try to keep the fees as low as possible. It is the fast growth rate that will create a highlight in the market, expand the scale and influence much more.

So above, VSM has provided you with the 2 most basic features of Startup. Understanding these two characteristics of Startup will help you avoid the death road of a Startup.

Development stages of a startup

Startup is a process of starting a business from position 0. So there are stages that you must go through. Join VSM to explore the 4 stages of development of a Startup.

Development stages of a Startup
Development stages of a Startup

Stage 1: Orientation

This is considered as a starting stage that any startup company must go through. The beginning always contains extremely important tasks such as planning, goals; implement paper ideas into reality,..

Therefore, when entering this stage, you need to analyze all the data extremely detailed, firmly grasp the knowledge of the business field as well as the market to avoid getting lost. This can be called the golden time to have a long-term, sustainable and most stable business process.

Stage 2: Challenge

The next step of the Startup orientation process is the step that Startups face with many difficulties and challenges. This is the stage of training Startup your skills, nature and will.

Challenge Passing Stage
Challenge Passing Phase

The Vietnamese market poses a lot of difficulties for startups and it has been proven that many startups have failed and had to change business models or change careers. This is also the stage to dispel all pink dreams about simple business, easy to bring profit. At the same time, it is the stage where startups have to pay and pay a lot of costs.

Thus, we can see that when entering this challenging period, the financial resources of Startups decrease very quickly. But this is also the period to test the bravery of a successful businessman in the future.

Stage 3: Blending

After going through the challenging phase, the integration phase is the time when startups recover and mend their losses.

At the same time, when it has reached the 3rd stage, surely the Startups have worked extremely well with the team members, so the work performance will increase extremely quickly during this period. This is the period when companies, businesses and stores are equipped with powerful engines to return to the most exciting market race.

The revenue of the company, the business at this stage can make up for capital, no loss or more positively will be a positive number. At the same time, short-term goals are gradually achieved. So try to create a stable physical infrastructure; build quality staff; Breakthrough new products to move to the next stage of a Startup process.

Stage 4: Develop

So what is the final stage of a Startup? That is the stage of stable, fast and sustainable development.

Stable, sustainable development phase
Stable, sustainable development

If in the integration stage, startups only achieve short-term plans, then at this stage, you can certainly achieve long-term plans and achieve bigger goals. At this point your Startup process has achieved success. Experience, skills, professional knowledge from Startup to employees have been stable and are on the fastest growing momentum.

The process of developing a Startup consists of 4 stages, each phase will have its own orientation, goals and requirements. However, the two phases 1 orientation and phase 2 challenges are extremely sensitive stages. Therefore, startups must pay special attention. If you have passed these two stages, your path to starting a business is successful.

Thus, the entire article above VSM has shared with you what Startup is as well as the correct ways to understand Startup. Hopefully, the useful sharing will help young people have more skills and knowledge for their own start-up process. If you have any questions related to Startup, please contact VSM for more detailed advice.