There are many definitions about start-ups and their success.Few are able to project the concept without unnecessary complexity of what it really means to be an entrepreneur.
Good News is that Fabulous Media has a successful “Startup Marketing Program” where we allow selected startups every quarter to get marketing and growth at a subsidised cost.
We are not the first nor the last one to touch the start-up concept discussion, yet when you say the word to someone, or a gathering, they still have their faces filled with inquisitiveness, awe, fascination but still an elusive understanding. In recent years this percentage has been constantly decreasing because Startup community has been growing globally and is something that has come to vogue and indeed talk of the times for many years now.
Definition of what a start-up really is
Startups and discussions around startup ecosystem is not purely positive because there has also been a certain “romanticism” around the start-up adventures, misadventures and missed adventures . Everything is very beautiful when you listen to the success stories but along the way there are many more failed startups then successful ones, and not many like to discuss about same.. It’s time to define what a start-up is by removing the makeup so you have the opportunity to realize if after an intense night of passion, you are still in love the next morning when the initial rush has passed.
Everything starts with an idea. The vast majority does not leave this stage because they have not discovered the path that must be traveled. The road between what you are and what you want is the avenue of moving your ass. The idea does not have to be great or revolutionary . It is enough if it is for you and every time you tell someone your eyes start to shine.
With each idea is usually related a story to tell . This is useful to create a brand and do branding from the first day. The stories are what will help your project go from one person to another thanks to viral marketing that can arise from it. The founder of Ebay even invented one in order to tell the media something.
A scalable technology business model
The start-ups typically have a technological base. It is not an exact definition and nobody really tells you what this means. A web page that becomes a business can fall into that category because “online” is related to “technology”. Your personal blog is not a start-up. Even if you get to earn some money with it. Riding a bar or ice cream shop is not either.
Typically scalable businesses are sought . They are those that without the need to proportionally increase the costs allow a growth in the form of hockey stick (the famous “hockey stick” ). This is what both entrepreneurs and investors dream of but that very rarely happens. Those start-ups look as little as a soccer player who has the talent of a Messi or a Ronaldo.
The entrepreneur is the central figure of the start-up. In the vast majority of cases, it starts alone and without equipment. He is the one who in solitude takes the first steps to see if he can get anywhere with his idea. He realizes that he reaches his limits and needs a team to complement him .
Before the team’s search, it’s up to find a co-founder who has the same energy and passion for the project as he does. It is a central figure that must be chosen with great care. Someone said that taking a partner out of the way is more complicated than divorcing his wife. So be very careful who you marry because every honey wedding has its end.
The team of the start-up
Without you, I am nobody. And more if you are an entrepreneur of a start-up . Without a team, your project is worth nothing at all . An investor will not bet on you if you lack a good one or at least you are not able to sell it as such. In a start-up we need at least one programmer and one marketing person and / or SEO to complement you. Although you can perform the tasks of one of the profiles mentioned will not give you time for everything. You need time to find users, customers and even financing if you need it.
You should also find when before an internal or external person to help you with financial and accounting issues . Your time is too valuable for you to lose with tax management. At the level of finance you need support but you have to control the essential figures of your business. You can trust but you should never go blind.
Lack of profitability (for a long time)
A start-up is not profitable . At least it is not for a long time. Even if you start earning some money you do not start doing it. The opportunity cost is much higher than you can earn with a start-up . In the vast majority of cases, the teams are talented people who could be earning a good salary working for others.
Nothing happens that you lose money during the first two years. Of course, this provided you have achieved funding to cover the costs because your team will not work for free and you also have to live on something. After 24-36 months a start-up is expected to become break-even . This means that you are starting to have more income than costs. In the US, there are examples where this point of equilibrium is not as relevant, but where growth at the user or billing level matters most. In Spain it is not the case.