Start-ups are known for their uniqueness, innovation, and authenticity to face difficult challenges and uncertainty. It is a dynamic way of entrepreneurship, where a capability to adapt to challenging situations is vital. We have to take into consideration that once huge companies like Google, Apple, and Facebook were the same start-ups. With none support, extensive network, and good marketing strategy, they would not be able to grow and be prosperous for society as they are today. Although it is not known whether the startup will be successful, it can still have a significant impact on society which is why it is crucial to support it in any way and not just financially.
Start-ups contribute to the economic growth of the nation. They have the power to create new industry markets (shared mobility, artificial intelligence, 3D printing) or change the old ones by introducing valuable products for society. They boost economic activities, which then help the economy to expand further. Therefore, when there is a higher demand for the start-up´s product, it can improve the country’s GDP. If the start-up is unique and still in the growth phase, it will attract different investors to invest their resources, leading to benefits for the country. Since money is spent and invested within the country, it creates benefits for the whole nation.
Any new kind of business creates new job opportunities. New jobs help the economy develop, and it allows cities and towns to grow through investment and improve their citizens’ quality of life. With an increasing number of start-ups, there are not just more job opportunities but also better skilled workforce. In a start-up environment, it is about every employee’s cooperation and interaction, where active participation is a key. Working for a start-up teaches employees flexibility, critical thinking, good teamwork, and courage for taking action. This acquired versatile skill set creates high-quality employees.
The start-up is a dynamic way of entrepreneurship, with a lot of risks and uncertainty. Every day many new companies are being launched, start-ups need to keep their eyes firmly on markets, competitors and everything that is happening around them. Start-ups look at innovation from a different perspective. First, they consider a specific industry’s needs and, based on that, think on how it can be improved or even create a new one. Businesses have to apply innovation in a smart way that genuinely solves the customers’ problem and fulfil their needs. By saying that start-ups innovate, it is not always related to the incorporation of new technologies. Innovation means adding value which can be created in non-technical ways like designing a tailor-made experience for customers or introducing a new distribution model.
Start-ups allow creating something that can be beneficial for society and improve people’s well-being. It gives a feeling that anyone can improve the world without any boundaries. Even though the development of the start-up is challenging and risk-taking, the individual’s development is valuable enough. Working for a start-up can teach a fresh entrepreneur how to adapt to a specific situation, work on many things simultaneously, be a real team player, and especially it can form skilled future leaders. It enables people to find unique talent that they can further develop and use in their future careers.
The benefits of knowledge sharing among more experienced ones and those at the beginning of their journey are seemingly never-ending. Sharing knowledge can help avoid unnecessary mistakes from the past, boost performance, inspire, and much more. Getting exposed to know-how and essential skills, which can successfully run your business, is an excellent tool for pushing beginning entrepreneurs to become better at their activities.
Expanding the network for starting entrepreneurs is like opening doors to various business opportunities – from the possible partnership to your product’s requests. In addition, it can help gain and exchange industry knowledge related to business operations that can benefit future careers. Network distribution can ease entrepreneurs’ path to success, and provide access to opportunities they would not find on their own.
Marketing is one of the most critical parts of the business. The product can be of high quality, but if it does not have good brand awareness, then it cannot increase sales or further develop business. In fact, without an essential marketing strategy, many businesses wouldn’t exist because marketing is what drives sales. Although choosing the right marketing strategy can be problematic for starting businesses, thus professional help is needed. Given the variety and diversity of marketing strategies and its implementations, it is very easy to get lost in choosing the most suitable one, especially if you have no experience in this field. A well-designed marketing strategy can help start-ups avoid unnecessary mistakes and often save money that can be used in more efficient ways.
Michael Seibel is a managing director at Y Combinator and co-founder of two start-ups. During his career, he got in touch with various start-ups where he guides them and tries to show the right direction for a successful business. In this video, he describes what he looks for in startups and some noteworthy tips.