StartupsTips

Four Types of Startups You Should Know in 2022

Four Types of Startups You Should Know in 2022

There are four types of startups: enterprise, social, lifestyle, and innovative. 

The first is an established company that wants to expand into a new market or take on a new product line. 

A social startup is one that aims to solve a problem by making the world more connected and giving people access to the information they need. 

Lifestyle companies have been around for some time but have now taken off as millennials lead the way with their purchasing decisions. 

Innovative startups are those who want to disrupt industries as we know them today through innovation and technology. 

In this blog post, I will outline each type of startup so you can decide which one suits your needs best!

a). Enterprise Startup

An enterprise startup is focused on working with big corporations, usually developing software products related businesses use internally. 

They are often large teams – sometimes more than 100 people – but don’t have high growth aspirations at this stage because they already have revenue coming in from other parts of the organization. 

b). Social Startups

A social startup has emerged as millennials lead the way with their purchasing decisions and spending habits- buying products they want to make the world a better place. 

A social startup is one that aims to solve a problem by making the world more connected and giving people access to the information they need. 

They are often small teams – sometimes just one person – but have high growth aspirations because their product has become very popular on its own. 

c). Lifestyle Companies

A lifestyle company has been around for some time but has now taken off as millennials lead the way with their purchasing decisions- buying products they are passionate about at any age.

ALSO READ  7 Reasons Why Online Education is Vital for Your Career

These startups are not necessarily young companies, though most of them started in recent years – rather, they offer experiences or items individuals use every day that fit into everyday life no matter what your background is. 

d). Innovative Startups

An innovative startup is one that wants to disrupt industries as we know it today through innovation and technology. 

These startups are often small teams – sometimes just two people in a garage – but have high growth aspirations because they want to change the world with their product or service!

How to pick the right one for you

When choosing the types of startups, consider the following;

a).  How much time are you willing to spend on this startup?

b). How will it make money? 

c). Are you trying to solve a problem or envision an opportunity that few see? If the latter, do not be discouraged if no one is buying your product.  

You can still get rich. Just go for market share which often comes at lower price points. This pays off in later years when your brand becomes more established and people become comfortable with new technology.

d). Will there always be room for growth of their business or industry?

e) What is the ratio between risk vs reward offered by different types of startups options available given all these factors mentioned above? 

It might sound counter-intuitive but sometimes investing some energy into looking for more options on the table is a very good idea. But before you do that, be sure to have thoroughly analyzed your own goals and expectations.

ALSO READ  7 Best New Ideas for Startups in India

With all these factors in mind here are four types of startups that might suit different people; 

a). Bootstrapping  Startups

You will need little or no money at first if you can bootstrap this startup with just enough resources to get started. 

This kind of model works best for those who prefer slow growth over time but steady cash flow later on when business starts taking off. 

For example, someone saves up some capital which he/she invests into his own company while living frugally without any outside investment whatsoever. 

Once they make their initial profit, reinvest it back into growing the business further for more expansion. 

b). Franchising Startups

This is one of the most common models of starting a new company. 

Franchise startups give you access to ready-made products and/or services that are already proven successful in another market by buying it from the original source, then customize it with your own branding elements, typically under an exclusive contract or franchise agreement. 

You can benefit from all their hard work (research & development etc.) without having to go through the hassle of coming up with something completely on your own. 

However, keep in mind that this takes time before any returns on investment become visible as usually there is the only minimum infrastructure required initially which means less money spent at first but also a slower growth rate if not managed properly.

c). Venture Capital (VC) Startups

You will need a lot of money to set up this kind of business and the risk is high as well. 

ALSO READ  Jisort Cloud Banking: Easing the Pain of Running SACCOs

But if you can get it, VC funding might be your best option since their resources are often unmatched by other forms of financing such as bootstrapping or franchising startup models. 

With access to large amounts of capital, investors who provide venture capital expect startups they fund not only to create new products but also expand into new markets globally where the potential for growth is much greater than in their initial market alone. 

What kind of startup suits you best? 

Do some research first before deciding so you know what’s available out there and how much effort will need to put into making your dream come true. 

But don’t fall prey to spending too much time doing something unproductive just because “it might work”. 

Do it only if you are sure that the potential returns of your investment outweighs its risks.

Author

  • His grandma thinks he is a genius, but we all know who he is😉. Rumor has it he bought Bitcoin back in 2016 and forgot the mnemonic phrase🤣. Poor Guy. But hey, he can fix anything blogging and marketing.

Share this post

About the author

His grandma thinks he is a genius, but we all know who he is😉. Rumor has it he bought Bitcoin back in 2016 and forgot the mnemonic phrase🤣. Poor Guy. But hey, he can fix anything blogging and marketing.

Leave a Reply

Your email address will not be published.

error: Content is protected !!