What is a startup franchise

Glossary: ​​Start up

Start up

What is a start-up?

And how can I start my own business? Nowadays, Anglicisms such as franchise, business plan (business plan model), job, etc. are common and almost everyone understands them. That is a relatively new term "Start-up".

A "Start-up" or "Startup" describes a recently founded company with a - hopefully - innovative business idea and high potential for expansion. So the company is still at the beginning of its life cycle.


The level of innovation is crucial

Not every newly founded company is automatically one Start-up, because e.g. a newly opened hairdressing salon serves the already existing and proven market and is therefore considered a start-up. Just like common craft businesses, architects, lawyers, etc. In franchising, the franchisee is also not considered Startup, however, it may well be the franchisor.

The Startup industry is always on the lookout for "the next big thing". The degree of innovation with which the founders, or above all their ideas, surprise and convince makes the difference. In the best case, they have Startups to grow above average potential.

Founding a company in the garage?

It is not uncommon for many potential founders to be seen during night shifts, hidden in garages or basements, in order to develop their ideas. There is often a lot of truth behind this clichéd picture, because there is almost always one at the beginning successful startups an innovative idea and little financial means.

Of course it's not always the garage or the basement in which they are located Startups The most famous startup scene is based in Silicon Valley, California. The startup location is exemplary and successful worldwide, thanks to, among other things, research at Stanford University, many start-up centers and investors.

Good ideas are usually worth gold

Establishing and running a Startups present the founder with many challenges. Funding is often the biggest hurdle to overcome. Good ideas are often worth gold, but the necessary capital has to be raised. Since very often only a small amount of start-up capital is available, one of the main goals of the founders is to expand their business at an early stage. One of the main characteristics of one Startups: to offer the company on the open market after a few years.

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