Types Of Startups With Examples

A startup is a company started by an entrepreneur to create a new product or service. Every entrepreneur begins with the ambition of achieving great success, but all companies face stages of growth and challenges. A significant percentage of startups fail; according to a report 90% of startups fail.

Reasons for failure are insufficient finances, inadequate research, or choosing the wrong  market strategy. Conversely Success is often linked to having a strong robust business plan, affecting marketing strategies, and mentorship from startup advisors.

Types Of Startups

The following are the 6 main types of startups:

• Lifestyle Startup
• Small Business Startup
• Scalable Startup
• Buyable Startup
• Large company startup
• Social Startup

Lifestyle startups

Lifestyle startups are the first type of startup. These ventures allow entrepreneurs to earn income while enjoying the lifestyle  they love. They are their own bosses, working for themselves and driven by Passion about their job. Some examples of Lifestyle startups include freelancing graphic designers, web designers, travel bloggers, and coders.

Small business startups

Small business startups are simple;  people who work for themselves instead of for a traditional company. Examples are handymen, personal trainers, and boutique owners. These businesses aren’t meant to become big or change the world. They are meant to give the owner an income . The business is the owner’s way of generating income.

Scalable startups

Scalable startups represents the third type of startup, designed for significant impact from the outset. Unlike traditional startups, they continuously grow without a standard exit strategy. These startups are ideal for individuals with deep market knowledge and the ability to explore new market opportunities. They have the potential to keep increasing their revenue while keeping their incremental costs at a minimum. Most founders believe that their ideas and mission will change the world. These startups hire the best of the best and the brightest among the brightest. They hire top talent and often look for venture capitalists to expand their businesses. 

Buyable startups

Buyable startups are also one type of startup, primarily consisting of Technology- and software-based startups, often web and  app-based. Their main goal is not to grow  or build a billion-dollar business but to sell to larger companies for a substantial profit. Entrepreneurs in this category  should have startup ideas with significant growth potential and are trying to raise money for their start-ups through crowdfunding and angel investors.

Large company startup

Large company startups are established large companies that start small and expand by introducing new products and services to consumers.  Instead of creating a new business, they build on existing one.  These companies often engage in both sustaining and disruptive innovation. A prime example is Apple, which began by selling computers, but now provides a wide range of products and services: iPads, Apple music, Apple TV, iCloud, and Apple Card.

Social startups

Social startups are dedicated to making a positive impact on the world. One well known example is Ben & Jerry’s ice cream, which focuses on issues like Prison reform while still aiming for profits; some social startups operate as nonprofits, solely oriented towards improving society in some way. Corporate social responsibility  (CSR) is an excellent way to start your company  interested in making a meaningful difference.

Build-for-equity is an opportunity for entrepreneurs to bring their startup ideas to life without needing  lots of time, money, and resources. It’s about getting experts to help you build your startups, which can boost your chances of success.

Conclusion – Types of Startups

Starting a startup is the first step to achieve entrepreneurial goals. It seems exciting, but it also demands a lot of critical thinking and hard work. People start businesses because they want independence and confidence.

If you are an entrepreneur and want to start your startup journey, you may lack critical insights and knowledge to achieve business success. 

Faqs – Types of Startups