Start-Up of a Company: What It Is and What You Need To Know

Start up what is it? Definitely a fashionable term in this historical period. This expression, translated from spanish to English simply means “start” and therefore with the start up of a company it indicates the start of a new business. The start-up of a company is an entrepreneurial activity that was born for the first time without it existing before.

Startup Of A Company: What Does It Consist Of?

It can be an activity that acts only online, it can deal with the creation of “concrete” products or services, but in the sense of the term all this matters little. But what is a start up? The word indicates the very operation of starting the business, the period during which the birth occurs. This period may vary, depending on a whole series of factors and procedures (also bureaucratic) that must be put in place before being able to affirm the actual existence of the company. The various procedures that generally concern all activities include: registering with the Business Register, opening a VAT number.

The term startup had its maximum diffusion in India at the time of the Internet bubble. About 12 years ago, the titles that had links with the web flew on the stock exchange. In the word is still sometimes erroneously used in the jargon of the bag. In the United States of America, on the other hand, the so-called “freshmen”, language borrowed from the  language translation services of colleges and universities are the subject of great interest for investors because they are companies that, not yet part of them, could be admitted to the Stock Exchange.

Start-Up Is: Focus on India

But let’s go back to India: with us a start-up is characterized by some peculiar characteristics: it is “at the beginning”, small in size, with a numerically “minimal” work group and the founders or employees tend to do other jobs. In a start-up there is a lot of flexibility in terms of organization chart: very far from the structured one of companies. The various skills are put in place in a transversal and varied way, and so also communications take place in a much more informal way compared to a structured company, with processes already well defined. However, products such as warehouse management programs help.

Unfortunately, the start-up of a company sometimes rhymes immediately with failure: in our peninsula only 1 out of 12 survives. After thinking about the new product or service, after market analysis, the drafting of the business model, you have to do the accounts with the concreteness of the market, the real one and not sweetened by theories.

Start Up Is: The Web and Digital

The word start up is almost always associated with the web. This is due to the fact that more and more start-ups of a digital company are born. Of course, creating something on the web, having an intuition and transforming it into an idea and then making money is perhaps easier: there is no need for a physical location and therefore the expenses for the premises and rents in general are already being cut.

Of course, you need to have a “base”, but you could also consider the home of someone from the “partners”. The next step would be to create a professional website. In this way intuition and realization would seem less distant from each other; this is the reason why virtual start-ups exceed physical ones. Obviously the web also presents a market with its laws and rules, sometimes as hard, if not more than the traditional one.

The Startup Dictionary

Here is a small dictionary of the most used terms in a company’s start-up world:

1. co-founder: the founder, together with one or more other partners, of the company;
2. angel fund or angel investor: investor who finances a project (with small-medium sums of money) in exchange for a small share;
3. venture capitalist: investor or group of investors who invest sums (small or large as appropriate) in a company, in exchange, this time, for larger shares of the company itself;
4. seed investment: consists of the first round of investment that a company receives to start developing its product and its subsequent launch on the market;
5. Hype: the growing interest, the expectations towards something, such as the success of the start-up or a particular product.

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