Every big unicorn began as a startup and that’s a fact. A company at the initial stages of business falls into any of these six categories:
- Scalable startups: These companies are in the tech niche and can easily access the global market. They receive financial support from investors and grow into international companies.
- Small business startups: Self-funded businesses.
- Lifestyle startups: Small gyms, karate schools, etc.
- Buyable startups: Designed from scratch to sell them to bigger companies later.
- Big business startups: Large companies design and release innovative products to satisfy customers.
- Social startups: Charities and non-profit organizations.
How to scale?
There are different ways to go from a small business to a startup. Many factors mingle so your company can achieve success.
- Choose the structure that works best for your company. Select the right legal form (LLC, C Corp, etc.) Depending on your choice, there will be different implications. A good structure is a need for financial stability. Taxes, type of industry, and personal liability are intertwined. How? Taxes impact in different ways, depending on your type of business. Different types of businesses need distinct legal forms: if the company has a high-risk potential, you might need to get an LLC. LLCs provide owner protection from liability risks like unpaid debts or even bankruptcy. Like real estate investments.
- Build the company’s credit. Establish a good and solid credit history, so it can access loans to help get good financial leverage. Good credit builds investors’ trust and gets better credit and repayment terms with suppliers and contractors.
- Develop your brand. Create an image that potential and existing customers know what you are selling and desire your product. Earn their trust. If you make promises and fulfill them, customers will return for more and recommend you.
- Build a standard operating procedure (SOP). You need a clear set of duties and expectations for all employees and departments to work for their actual potential.
- Be different from your competitors. What sets your company apart from the crowd? In this world full of similarities, your uniqueness will make a difference.
How do I know if the company is already an enterprise?
To know if you are not a startup anymore and started to play in the big leagues you might want to comb through these points:
- Your numbers are good enough to pay all of your employees and yourself.
- You are recognized by peers, receiving invitations to different conferences.
- Your company is not only profitable but sought after.
- You can take a vacation without worrying your company might fall apart without you.
At Awkbit we help startups and enterprises by developing different web and mobile apps and providing staff augmentation. We accompany them from the idea to full implementation; from start to finish, delivering a solid, secure, robust, and scalable product.
Try our custom solutions and discover why we are different.