What is a Startup?

A startup is not just a new business. It's a temporary organization designed to search for a repeatable and scalable business model. This definition, coined by startup expert Steve Blank, highlights the core purpose of a startup: to figure out its product, its customers, and its market.

Unlike traditional small businesses that often launch with a known business model (like opening a restaurant or a consultancy), startups operate under conditions of extreme uncertainty. They are on a mission to prove their core hypotheses before they run out of resources.

Key Characteristics of a Startup

• Innovation: Startups are typically built around a new product, service, or technology. They aim to disrupt existing markets or create entirely new ones.
• Scalability: The business model is designed for rapid growth. A startup aims to serve a large market and grow exponentially without a proportional increase in resources.
• Growth-Oriented: The primary focus is on growing fast, often prioritizing market share and user acquisition over immediate profitability.
• Risk and Uncertainty: Startups face high levels of risk. They are experimenting with unproven ideas and don't know if their business model will succeed.

In essence, a startup is a high-stakes experiment. The goal is to iterate and learn quickly, pivot when necessary, and ultimately discover a sustainable business that can make a significant impact.