A start-up is a newly created company that aims to validate a business model.
Keeping your business accounts up to date is a good business practice. With FacturaDirecta it’s very easy. Create an account now and check it out.
What is a start-up?
A start-up is a newly created company that aims to validate a business model.
Start-up is an Anglo-Saxon term that means to start, start up or begin. A start-up can initially be a company dedicated to any type of business, but in general they are usually related to new technologies or the Internet (ICTs).
Characteristics of a start-up
They are newly created companies, and are generally characterized by having a young and creative environment.
They are companies focused on innovation, mainly in new technologies, but not only in terms of the products or services they offer but also in relation to their internal processes.
They have a great growth capacity.
They usually have a wide variety of professional profiles.
They are companies with low investment (not always) and the vast majority of startups do not use traditional financing sources as they usually opt for capital contributed by investors in exchange for a percentage of the company (Business Angel), Crowdfunding…
They do not usually have usual offices for use, so they do not usually have physical customer service. Office options are usually almost all valid: their own home, a shared workspace, business incubators or accelerators…
They are very customer-oriented, not only for the creation of the product that will be commercialized but also throughout the life of the company, maintaining constant communicative relationship with the customer.
Why does a start-up usually cease to exist?
It is complicated to give a single answer to this question, but in general it is usually considered that a start-up stops being a start-up when:
- It succeeds as a business and manages to validate its revenue model.
- When the company itself ceases to exist because it has been absorbed by a different company or has merged with another company.
- When the company disappears.
We hope this information is very useful to you.