In today’s innovation-hungry world, having just one great idea just isn’t enough. To that end, implementation and specialised business apps are required to make a significant difference.
For numerous years, investors have considered various sorts of startups as small companies. It was a serious issue since there is a major conceptual and organisational gap between a startup, a small business, and a huge corporation.
There are six basic sorts of companies into which entrepreneurs often venture. Add an easy-to-use business app to the mix, and you’ll greatly increase your growth opportunities. Here are six categories of startups that can profit greatly from a business app.
1) Small business:
Small businesses and start-ups might seem like the same thing and people tend to use one term for the other. Using the criteria outlined above, the typical startup has more in common with a mom-and-pop store than with Google or Apple.
Small business starts are unique. These companies, which range from sole proprietorships and partnerships to small groups, are content to remain so while they offer their wares and services.
And, while they want to grow, they do so at their rate. Such firms are frequently self-funded, which means there is less need to expand quickly or to cater to the urgent demands of investors.
- Preplaced: Preplaced is a firm that prepares college students and working people for interviews. They provide services to assist you to acquire an advantage in interviews.
2) Buyable startups: Businesses that are designed to be bought out
The idea is that small teams create a firm from the ground up and then sell it to a larger player in their field.
These startups are often related to software and technology. You’ve probably seen the news about tech behemoths like Amazon or Uber acquiring smaller firms. This type of merger and acquisition happens all the time.
Getting bought out looks like a pretty good bargain, doesn’t it? However, creating something valuable enough to be purchased for millions (or billions) of dollars is easier said than done.
Consider first that competition in any particular software business is really strong. In B2B SaaS alone, there are hundreds of companies to fight with. Keep in mind that companies do not have to be successful in order to be acquired (and many are not). This is a significant risk for investors, but it poses an even greater danger for business owners who are seeking to sell off a firm that is losing money.
- Simsim: Simsim is one such firm that springs to mind, which was purchased by digital giant Youtube in 2021. It is fairly typical these days to use influencers to help market a product. That is precisely what Simsim does. The organisation assists small businesses in flourishing in the e-commerce industry by leveraging influencers to get momentum.
3) Scalable startups: Companies looking for funding
The urge to scale is a common thread throughout all sorts of companies. This is true whether you’re a company with hundreds of workers or a couple operating out of your parent’s garage.
However, some startups are more easily scaled than others. Most consumer and commercial applications are instances of scalable startups: after they’ve generated awareness and a user base, it’s simpler to recruit new consumers.
Scalable businesses do this by fundraising coming from external investors. With their extra income, they can fund expansion activities in order to get more consumers and, eventually, attract the attention of those looking to buy them out.
However, certain firms can expand indefinitely without relying on a typical exit plan.
- Flipkart: Flipkart is one of India’s most recognised scalable companies. The e-commerce behemoth began as an online bookshop before diversifying into a variety of consumer goods. It is now India’s largest native e-commerce platform.
4) Offshoot startups:
Companies that are spin-offs of larger businesses Not all startups are created from the ground up. An offshoot is startups that split out from larger parent firms to become independent enterprises.
An offshoot firm, for example, maybe founded in order to enable a larger corporation to enter into new markets or destroy a weaker opponent. Because these startups function independently of their parent corporations, they are allowed to conduct business and explore without attracting undue attention or criticism.
- Glance: Consider Glance, an AI-based software firm held by InMobi, a tech firm and one of India’s first unicorn startups. Glance pushes customised information to your mobile home screen.
5) Social startups:
Startups are sometimes portrayed as expansion obsessed and money-hungry. Having said that, certain startups are purpose-built to accomplish good. Charities and nonprofits are examples of social startups that scale for the purpose of generosity. They function in the same way as any other startup, but with the assistance of funding and benefactors.
- Selco: This is a social entrepreneurship company that strives to identify the consumer and home requirements and provide viable alternatives and service alternatives to them. It intends to provide clients with more sustainable energy alternatives, which may even aid in the eradication of poverty in rural regions.
- m.Paani: Akansha Hazari created this ethical enterprise in 2014. It is a marketing and data analytics firm that provides a platform for small merchants to increase sales. This is accomplished through a mobile-based loyalty program that aims to deliver critical resources to local shops. It also provides merchants with vital information and analytics that may help them run their businesses more effectively.
6) Lifestyle startup:
Lifestyle companies are developed out of a creator’s passion and determination for autonomy, with the founder devoting their time and attention to turning their favourite pastime or activity into a profitable business. This can range from a frequent traveller creating a tour guide company to a web engineer beginning a freelance coding firm.
- Zivame: Zivame is a firm that represents what a lifestyle startup is. The firm has succeeded in bringing the founder’s passion for inexpensive and high-quality underwear to India. It also sparked many discussions regarding lingerie, which was formerly considered a taboo subject in India.
So that brings us to the end of our list of the many sorts of startups in India. Now that you have a better knowledge of the various categories, you can start working on converting your startup concept into a million-dollar firm.