Startup

Content

• Definition of a Startup
• Differences Between a Startup and a Small Business
• Types of Startups
• Stages of Startup Development
• Who and How Funds Startups
• How to Create a Startup
• How Email Marketing Can Help in Startup Development

Definition of a Startup

A startup is a new financial project whose main goal is to quickly return investments and generate profit. Although the term "startup" is often misused, its essence lies in being a temporary form of organization that seeks to find a reproducible and scalable business model. Unlike traditional businesses, which already use known earning models, startups are in the process of finding effective solutions to achieve their goals.

Differences Between a Startup and a Small Business

The main difference between a startup and a small business is that startups actively search for new business models, while small businesses already apply ready-made solutions. For example, if you open a new restaurant, you already have an idea of the business model that involves attracting customers and receiving payments. At the same time, a startup, such as McDonald's, began with an innovative idea that was able to scale through franchising.

Startups are often associated with technology and innovation; however, they can arise in any field. For example, the social network Facebook* was initially created for students but quickly transformed into a global platform generating revenue through advertising. This demonstrates that the main characteristic of startups is a focus on new business models and rapid growth.

Types of Startups

By Technology Intensity

• Classic projects based on the reworking of existing ideas.
• Innovative projects that require significant investments to implement new discoveries.

By Characteristics

• "Successful Copy": successful projects that replicate the developments of foreign startups. Example: social network "VKontakte".
• "Aggressive Intruder": startups that capture the market through attractive conditions. Example: discount service Biglion.
• "Dark Horse": projects with uncertain prospects. Example: Airbnb, which started with a simple offer for lodging.

Stages of Startup Development

The process of developing a startup includes several key stages:

1. Pre-seed: formulation of the idea and initial research.
2. Seed: market study and search for investors.
3. Prototype: creation of a working model of the product.
4. Alpha Version: testing the prototype and fixing shortcomings.
5. Closed Beta: presenting the product to a narrow audience for feedback collection.
6. Open Beta: launching the product to the market and scaling the business.

It is also important to determine in advance how the startup will enter the market: as a traditional business, through sales, or public offerings.

Who and How Funds Startups

Startup financing can come from various sources.

Main Sources of Funding:

• Bootstrapping: self-financing through personal funds.
• FFF investors: funds from friends, family, and non-professional investors.
• Business Angels: private individuals investing money at early stages.
• Seed Investments: funds from venture capital firms in exchange for equity in the business.
• Public Offering (IPO): the company's entry into the stock market to attract large investments.

Each of these methods has its advantages and risks; however, venture investors can offer not only funding but also support in managing the project.

How to Create a Startup

Launching a startup requires careful preparation. The main steps include:

1. Identifying the problem and audience needs.
2. Researching the market and competitors.
3. Creating an innovative solution.
4. Forming a team of like-minded individuals.
5. Developing a business model and testing demand.

Statistics show that 90% of startups fail, so it's essential to analyze potential risks, such as ineffective financial management and legal issues.

How Email Marketing Can Help in Startup Development

Email marketing is a powerful tool for startups, allowing them to effectively promote products with minimal costs. The main tasks that can be solved with email marketing include:

• Building a database of potential customers.
• Creating a loyal audience.
• Testing the business model and obtaining feedback.
• Attracting investments.
• Launching pre-sales.
• Informing the audience about project progress.

An example of successful email marketing usage is the company Harry's, which attracted 100,000 subscribers in just a week by launching an effective email collection campaign.