July 28, 2007

Characteristics That Make a Startup a Startup

What characteristics do startups have that small businesses lack?

• Opens up a new market. Creates a new product or service or expands on a current product in a unique way
• Raises interest from Venture Capitalists. Note that this does not mean that the startup must take VC funding, only that it is the type of venture to raise VC interest
• Pushes the limit of what is considered to be the norm. Makes people say, “Wow, I’ve never seen that!” or “Huh, I didn’t even know that was possible?”
• Agile, agile, agile. Is very in tune with the market and easily adapts to market changes and/or customer feedback.
• Holds idealistic(and attainable) visions. There is a crystal-clear, grand picture of what the company should look like in the end. Mini-visions help the startup take attainable steps to achieve the vision.
• Is not easily replicated. Just as important as the intellectual property the startup may have, the vision that the founders hold make the venture unreplicatable.

What other factors make a startup a startup for you?
Next up, what makes a startup a backyard startup.