Internet startups: everything you need to know about online business
What is the most difficult thing in business? Looking for investors, bypassing competitors or keeping records is difficult, but these are essential components. The most difficult thing for an entrepreneur is to find an idea for which you want to work 24 hours a day. An idea that will inspire not only you, but those around you. From which a promising business will grow.
You don't have to be Elon Musk or Nikola Tesla to generate such ideas. It is enough to notice problems and use ready-made algorithms. In this article, we'll show you how to get an endless list of business ideas.
How does a startup idea differ from a traditional business?
A startup is a company that tests non-traditional business models in order to increase margins or lower the threshold for entering the market. But if you use unusual development paths, there is a need for hypotheses and tests. In all other cases, nothing needs to be invented - the result is provided by professionals, cheap money and proven strategies. Simply put, a startup with equal efforts should generate much more money than a traditional business.
ways to come up with a competitive business idea
Below is a cheat sheet for those who want to turn the economy around and come up with something truly new and, importantly, useful - tools for generating business ideas. What's interesting - the result depends only on your ingenuity, outlook and diligence. And, most likely, these ideas will be unique, because the environment and way of thinking are different for all of us.
The Six Thinking Hats of Edward de Bono
Have you ever sat down at a laptop in order to come up with a new business, product or solution to an old problem, and as a result, you were distracted by other tasks? It's just that your thinking is chaos and that's okay. To achieve the result, Edward de Bono proposed to break down thinking into six modes, focusing on only one of them, solving a specific problem. To make it clearer, we came up with a colored hat for each mode (the hat can be either figurative or real - all at your discretion).
- Blue hat - management and coordination. It is worn at the beginning to outline a strategy and periodically along the way of thinking to control the process.
- White hat - information and facts. We analyze what data is missing and where it can be found. We look at which numbers are outdated, whether the statistics correspond to reality.
- Red hat - emotions and feelings. Expressions are made based on personal experiences and preferences, well suited for evaluating the design and the aesthetic side of the solution.
- Black hat - critical thinking. Potential risks, dangers and obstacles are identified. The red hat slows down the flow of consciousness well, but you can't put it on before, so as not to spoil the creative fuse.
- The yellow hat is optimistic. Positive expectations and assumptions.
Starting your own business is a pleasant and interesting alternative to being hired. However, starting your own business in big cities is not so easy: powerful competition is making itself felt. For this reason, an increasing number of entrepreneurs are trying to focus specifically on small towns or even villages.
Launching a startup in a small town is a promising start to your business. It is not necessary to have a special education - you just need to invest a certain amount and organize production correctly.
Features of doing business in a small town
A small town is a settlement with a population of no more than 50 thousand people. Oddly enough, it is the population size that is the reason for a number of features of the business sphere in such cities: there are both advantages and pitfalls.
The main feature of small towns is weak competition - especially in some areas. Residents of small towns are more conservative, fresh fashion trends come to the province with a delay: it is unlikely that in such places there will be numerous burgers, barbershops or similar new-found establishments that grow in capitals like mushrooms after rain, as soon as a new fashion is born. However, weak competition is not always beneficial: it may indicate a lack of profitability in a business model.
In small towns, people spend much less on services than in big ones. This feature should be taken into account, thoroughly study the market and carry out test launches.
The same features include a low threshold for entering a business. In small towns, there is often a shortage of jobs and cheap land. On such factors, you can save a lot at the initial stages.
Usually the amount of initial capital in small towns is small, which allows you to start your own business from scratch.
People in such settlements are very willing to spread information about the opening of a new place: word of mouth will become your free and effective advertising. If the project is really focused on people, then such a startup will very quickly begin to generate income even without launching a serious advertising campaign.
Of course, each area has its own characteristics, which in one way or another affect the final profit. The main thing is to focus on the population and ensure that they receive a quality product at every stage of their own business development.
Pros and Cons
Before starting your own business in a small town, you need to weigh the pros and cons.
- Low competition;
- High startup efficiency;
- Relatively small amount of start-up capital;
- Costs are much lower than in big cities.
In recent years, the term "startup" has gained particular popularity, and many people often get confused when interpreting it. Thousands of entrepreneurial projects are launched every year, but only a small fraction of them can be called startups. In fact, this is a creative and innovative endeavor that involves the introduction of a fundamentally new product into the market.
What is a startup
In most cases, this term is used to refer to a newly opened enterprise, although this is incorrect.
The main difference between a startup and a small business is the innovative basis of the project idea and the peculiarities of its development in an environment of high risks. At the same time, it does not necessarily have to be a new direction in business; it may be an unusual application of existing technologies.
The most accurate definition is that a startup is a temporary form of organization that develops in conditions of uncertainty, aimed at scaling and becoming a large corporation. Conventionally, startups can be divided into several types:
- The work of a lifetime, when a favorite hobby becomes the impetus for the birth of a business project. Subsequently, this brings profit and satisfaction to the founder of the startup.
- Enrichment, as the goal of an undertaking, will push the innovator to find the most promising ideas, regardless of their preferences.
- Family companies, when family members are involved in the business. In this case, the uniqueness is achieved through a special approach to business.
- Global endeavors, when a corporation becomes the absolute leader on a global scale.
Another feature of a startup is its rapid development without geographical restrictions. The newly opened cafe is not meant to grow rapidly.
A successfully developing startup achieves colossal financial performance in a short period of time.
Stages of Startup Growth
World practice shows that every innovative undertaking goes through several stages of development, and the process of formation in various directions differs from each other.
Stages of transformation of a startup into a stable company:
Startup as a business term appeared in the 1970s, in the 1990s it became widespread as a phenomenon. The ability to quickly create a new and at the same time profitable business project is directly related to the development of communications, primarily the Internet. In the 1990s, the Internet only accelerated the development of young companies; they carried out their main activities in real life. Currently, Internet startups allow you to create a business exclusively on the network, due to the implementation of a demanded idea.
Business on the Net: Examples of Successful Startups
The fact that a start-up business on the Internet can develop only through the implementation of an idea no longer surprises anyone. For some, the problem is seen in something else: there is no way not even to implement, but to come up with a demanded idea. In fact, the experience of both the largest and small (but profitable) projects on the network suggests that a rather awkward idea may lie at the heart of a new business. Moreover, it does not even have to be new! Mark Zuckerberg was not the first to create a social network on the Internet, but his predecessors have sunk into oblivion, and Facebook is still afloat. Let's consider examples of creating Internet startups: from local to well-known ones.
The largest Internet startups: from idea to billions
It would seem that the example with Zuckerberg and Facebook is quite banal. However, it was he who opened social networks to the world. Vkontakte, Odnoklassniki, Qzone, MySpace, Friendster and many others walked along the partly beaten path of their older brother. Therefore, when considering the most affluent companies that appear in the lists of the best Internet startups, you should start with social. networks.
If the 2021s went down in the history of the Internet as the time of the emergence of general social networks, then in the 2021s a lot of specialized social networks appeared. networks:
- Spotify is a service for listening and sharing music.
- Instagram, Pinterest - social networks for sharing and discussing photos and pictures.
- Twitter is a service for public exchange of short messages.
By and large, these projects represent an increasingly tighter social network. At first glance, there is nothing in them that Facebook and its analogues no longer had. Nevertheless, all these services were able to attract tens of millions of users.
A certain niche was occupied by services, without which it is impossible to imagine the information world - cloud storage of information. Dropbox was founded by Drew Houston in an era where storage servers existed. However, it was the cloud service Dropbox that was able to outlast almost all of its competitors and attract over 200 million users. The company's current value is estimated at $ 1 billion.
The list of not the most original, but practical ideas continues Duolingo. The implementation of the idea of teaching users foreign languages in Duolingo was brilliantly realized. The boring learning process was replaced by a playful one (gamification) without sacrificing efficiency. The monetization of the application is also ingeniously arranged: a user who has learned the language can try his hand at translating articles in a foreign language. The article translated by the user for free will eventually be sold to the customer.
Internet projects: conclusions and development trends
Thus, ideas for startups can be divided into two categories. In the first, an idea is developed around an industry or sphere of life, helping to solve a problem. In the second category, the idea is more non-standard and not tied to the existing sphere of life. For example, in the late 1990s, people lived outside of social networks. In fact, social networks in the early 2021s (Facebook was created in 2021) formed a new sphere of human needs.
Now startups are characterized by an increasingly narrow focus and striving for the fastest possible expansion. For example, we can take Coub - a classic Internet project that does not produce a real product, but at the same time consistently generates income. The service is a site with many looping videos. At the moment, the resource is visited daily by over 50 million unique users. Comparison with YouTube is appropriate, however, Coub found its "chip" and successfully developed it, acquiring its own audience.
Startups appear in the 1970s, in the 1990s they spread all over the world and are gaining popularity with the help of the Internet. The success of creating a profitable business now depends on modern communications, which also make it possible to make a profit by developing an intangible product. Nowadays, Internet startups provide an opportunity to form online entrepreneurship by implementing an idea for which there is a demand.
What is an Internet Startup?
An Internet startup is a newly created company that has not yet registered as a legal entity and is based on modern technologies and innovative ideas.
Despite the existence of the IT field, an Internet startup can relate to any field of activity. Its main advantage is that it offers consumers completely new products and services. An Internet startup can be, for example, a social network or an online service with special services (language and other disciplines learning, freelance exchange). An Internet startup, just like a business, has a team of enthusiasts who support the idea.
Internet Startup Goals
Every entrepreneur has a goal, because of which he starts working on the implementation and development of the project.
First you need to determine what kind of business you want:
- The one that can be sold to another entrepreneur upon achieving results;
- The so-called "cash cow", which will gradually make a profit.
The future of the business and its further success depends on it. After that, you need to recruit a team - this is an important step, because exactly these people will work with you on the project. To increase the startup's chances of success, it is best to attract already experienced participants who have previously worked on other projects. Team professionals are the key to success.
An Internet startup is well suited for earning money and forming a professional team with which you will work in the future. Startups can be sold if you have successfully launched them, or used to generate a small amount of income.
Benefits of Internet Startups