What is a Startup Business? Is there a difference with a conventional business?

The word 'startup' is no longer unfamiliar to the public. With the rapid advancement of technology, it is currently affecting the development of business in Indonesia. Like the last few years, Indonesia has just arrived a term in the business world that maybe the general public doesn't really understand or even doesn't know about this term. The term in question is startup. 

Kata startup is an absorption word in English which means the process of starting an organization or business venture. However, what is meant by the translation does not explain in detail about the meaning of startup. Launching from Wikipedia, the meaning of startup is a start-up company where the company is categorized as a company that has not been operating for a long time. 

Basically, a company can be said to be a company startup if the company has just been established or has been running for less than five years. Not only that, the criteria for companies that are categorized as startup usually not far from things related to technology, the internet, and websites as tools to achieve audience or user targeted. 

When looking at the flashback, the use of the term startup this started to appear at the time of tragedy dot-com bubble around the 2000s. Since then, meaning startup then has a significant shift in meaning along with the increase in technology that is growing day by day, as well as more and more people who know the internet as a place to start their own business. So, it can be concluded that business startup be in sync with technological developments.

Although often referred to as 'start-up companies', since the dot-com bubble Initial, startup has some changes in meaning where startup is not only defined as a business that has just started, but is a business that implements innovation by using technology and solving problems that exist in society.

Then, is there a difference between a startup company and a conventional company or online business that is currently being carried out by the community? As for some of the characteristics or characteristics of the business startup that can differentiate between business startup with conventional business. The following are some of the characteristics included in the company startup: 

• Help solve problems

Owner of business startup usually have the main goal of helping the problems of the community. Business owner startup usually aims to create ongoing innovations to keep the company going. Innovation is needed by the company startup so that the pioneered business can be the right solution for the people who are the target market. 

• Have cash flow and/or UR or and/or complete balance sheet mobile platforms 

Technology is the most important thing when it comes to business startup. This is what makes a business startup requires to prioritize the use of the latest technology such as smartphone that can bring a company closer startup with users. 

• Level of business development or growth

Company startup can also be characterized by the level of development or growth-his. Business startup usually more focused on growth than profit. With growth that, business startup can trust investors to flow funds. 

• Funding

In building a business startup, of course, requires large funds so as not to hinder the development process. Business startup usually get funding from investors in an effort to increase growth so that the company startup positively rated by investors. Startups potential tend to have a low risk of failure compared to startup other. 

• Employee performance 

Employee performance within the company startup usually always required to provide ideas to innovate, so that companies startup can move forward. Company employees startup also required to work faster, so that projects or targets can be completed in a short time. 

Different from business online, which of course has its own characteristics and can be said to be almost similar to business characteristics startup, where the two businesses both use technology as a means to bring the company closer to its customers, one of which is by website. However, this does not necessarily make the two sectors the same thing. As discussed above, the main core of the company startup is to promote innovation and the emergence of business startup aims to create solutions to problems that exist in society. 

Through the explanation of business characteristics startup mentioned above, it can be said that business startup usually have the properties disruptive because the purpose of making from business startup itself, namely making new innovations for the community. Of course, this can be "disruptive" for existing industries, as is the case with the transportation industry online Currently, they are competitors for conventional taxi companies, where people are now easier with transportation online which is the solution for ordering transportation in a fast, convenient and easy way. 

Business development startup in Indonesia today certainly produces satisfactory results for the growth and development of technology. Based on that statement, business startup believed to be an advantage that brings benefits to many people, especially Indonesia, of course with new discoveries that can be enjoyed directly by the community. Based on startup report reported by DSInnovate, there are at least five startup unicorns from Indonesia that managed to dominate the market steadily until 2020, namely GO-JEK, Tokopedia, Traveloka, Bukalapak, and OVO. The report also concludes that, business startup The most influential in Indonesia to date is led by the E-Commerce and Fintech sectors. 

Well, through the explanation above, have you started to understand what it is? startup and how is it different from other businesses?

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Disclosure: This article was written by Dessita Natasya