What is startup?

The English term "Startup" describes a recently established company that is located in the first phase of the business life cycle. When one thinks of a startup, exisitiert many the clichéd image in your mind as potential entrepreneurs develop their great ideas during night shifts in inconspicuous garages to bring then to market. But even if this idea is a little clichéd, it can do a lot of truth - because at the beginning of a successful start-ups are almost always a brilliant idea and limited financial resources.Startup characteristics: degree of innovation and growth potentialAge alone, however, seems to turn a company, no startup in the colloquial sense - or one would speak of the new bakery on the corner of a startup? Probably not. Another important characteristic of a startup is thus the degree of innovation, with the founder and above all her idea to surprise and convince. And what the startup industry would be complete without the search for "The Next Big Thing"? Startups have namely to grow, at best, a larger than average potential - and far more than the baker on the corner. And that's what makes the difference.Startups, entrepreneurship and business modelEstablishing a successful startups in addition to an innovative idea is necessary but also the development of a scalable business model and a detailed elaboration in a business plan. Also the necessary capital must be procured. Although Good ideas are usually worth gold, but it is precisely the appropriate funding that makes an entrepreneur often most to create. Since in most cases, only small seed capital to implement the idea is available audience, many startups on the early expansion of their businesses. In order to strengthen its capital base, they fall back generally to venture capital or business angels.