BUSINESS

1. A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop,
and validate a scalable business model. While entrepreneurship refers to all new businesses,
including self-employment and businesses that never intend to become registered, startups refer
to new businesses that intend to grow large beyond the solo founder. At the beginning, startups
face high uncertainty and have high rates of failure, but a minority of them do go on to be
successful and influential.
Models behind startups presenting as ventures are usually associated with design science. Design
science uses design principles considered to be a coherent set of normative ideas and
propositions to design and construct the company's backbone. For example, one of the initial
design principles is "affordable loss".

2. Startups typically begin by a founder (solo-founder) or co-founders who have a way to solve a
problem. The founder of a startup will begin market validation by problem interview, solution
interview, and building a minimum viable product (MVP), i.e. a prototype, to develop and
validate their business models.
The startup process can take a long period of time (by some estimates, three years or longer), and
hence sustaining effort is required. Over the long term, sustaining effort is especially challenging
because of the high failure rates and uncertain outcomes. Having a business plan in place outlines
what to do and how to plan and achieve an idea in the future. Typically, these plans outline the
first 3 to 5 years of your business strategy.

3. Entrepreneurs often become overconfident about their startups and their influence on an outcome (case of the
illusion of control). Entrepreneurs tend to believe they have more degree of control over events, discounting the
role of luck. Below are some of the most critical decision biases of entrepreneurs to start up a new business.
Overconfidence: Perceive a subjective certainty higher than the objective accuracy.
Illusion of control: Overemphasize how much skills, instead of chance, improve performance.
The law of small numbers: Reach conclusions about a larger population using a limited sample.
Availability bias: Make judgments about the probability of events based on how easy it is to think of examples.
Escalation of commitment: Persist unduly with unsuccessful initiatives or courses of action.
Startups use several action principles to generate evidence as quickly as possible to reduce the downside effect of
decision biases such as an escalation of commitment, overconfidence, and the illusion of control.

4. Lean startup
Lean startup is a clear set of principles to create and design startups under limited resources and tremendous
uncertainty to build their ventures more flexibly and at a lower cost. It is based on the idea that entrepreneurs
can make their implicit assumptions about how their venture works explicit and empirically testing it. The
empirical test is to de/validate these assumptions and to get an engaged understanding of the business model
of the new ventures, and in doing so, the new ventures are created iteratively in a build–measure–learn loop.
Hence, lean startup is a set of principles for entrepreneurial learning and business model design. More
precisely, it is a set of design principles aimed for iteratively experiential learning under uncertainty in an
engaged empirical manner. Typically, lean startup focuses on a few lean principles:
find a problem worth solving, then define a solution
engage early adopters for market validation
continually test with smaller, faster iterations
build a function, measure customer response, and verify/refute the idea
evidence-based decisions on when to "pivot" by changing your plan's course
maximize the efforts for speed, learning, and focus

5. Market validation
A key principle of startup is to validate the market need before providing a customer-centric product or
service to avoid business ideas with weak demand.[Market validation can be done in a number of ways,
including surveys, cold calling, email responses, word of mouth or through sample research.
Design thinking
Design thinking is used to understand the customers' need in an engaged manner. Design thinking and
customer development can be biased because they do not remove the risk of bias because the same biases
will manifest themselves in the sources of information, the type of information sought, and the
interpretation of that information.Encouraging people to “consider the opposite” of whatever decision they
are about to make tends to reduce biases such as overconfidence, the hindsight bias, and anchoring

6. Decision-making under uncertainty
In startups, many decisions are made under uncertainty,and hence a key principle for startups is to be
agile and flexible. Founders can embed options to design startups in flexible manners, so that the
startups can change easily in future.
Uncertainty can vary within-person (I feel more uncertain this year than last year) and between-
person (he feels more uncertain than she does). A study found that when entrepreneurs feel more
uncertain, they identify more opportunities (within-person difference), but entrepreneurs who
perceive more uncertainties than others do not identify more opportunities than others do (no
between-person difference).

7. Partnering
Startups may form partnerships with other firms to enable their business model to operate.To become attractive to
other businesses, startups need to align their internal features, such as management style and products with the market
situation. In their 2013 study, Kask and Linton develop two ideal profiles, or also known as configurations or
archetypes, for startups that are commercializing inventions. The inheritor profile calls for a management style that is
not too entrepreneurial (more conservative) and the startup should have an incremental invention (building on a
previous standard). This profile is set out to be more successful (in finding a business partner) in a market that has a
dominant design (a clear standard is applied in this market). In contrast to this profile is the originator which has a
management style that is highly entrepreneurial and in which a radical invention or a disruptive innovation (totally
new standard) is being developed. This profile is set out to be more successful (in finding a business partner) in a
market that does not have a dominant design (established standard). New startups should align themselves to one of
the profiles when commercializing an invention to be able to find and be attractive to a business partner. By finding a
business partner, a startup has greater chances of becoming successful.

8. Startups usually need many different partners to realize their business idea. The commercialization
process is often a bumpy road with iterations and new insights during the process. Hasche and
Linton (2018) argue that startups can learn from their relationships with other firms, and even if the
relationship ends, the startup will have gained valuable knowledge about how it should move on
going forward. When a relationship is failing for a startup it needs to make changes. Three types of
changes can be identified according to Hasche and Linton (2018):
Change of business concept for the start up
Change of collaboration constellation (change several relationships)
Change of characteristic of business relationship (with the partner, e.g. from a transactional
relationship to more of a collaborative type of relationship)

9. Entrepreneurial learning
Startups need to learn at a huge speed before running out of resources. Proactive actions
(experimentation, searching, etc.) enhance a founder's learning to start a company.To learn
effectively, founders often formulate falsifiable hypotheses, build a minimum viable product (MVP),
and conduct A/B testing.
Business Model Design
With the key learnings from market validation, design thinking, and lean startup, founders can
design a business model. However it's important not to dive into business models too early before
there is sufficient learning on market validation. Paul Graham said "What I tell founders is not to
sweat the business model too much at first. The most important task at first is to build something
people want. If you don’t do that, it won’t matter how clever your business model is."

10. Founders/entrepreneurs
Founders or co-founders are people involved in the initial launch of startup companies. Anyone can be
a co-founder, and an existing company can also be a co-founder, but the most common co-founders
are founder-CEOs, engineers, hackers, web developers, web designers and others involved in the
ground level of a new, often venture. The founder that is responsible for the overall strategy of the
startup plays the role of founder-CEOs, much like CEOs in established firms. Startup studios provide
an opportunity for founders and team members to grow along with the business they help to build. In
order to create forward momentum, founders must ensure that they provide opportunities for their
team members to grow and evolve within the company.

11. Internal startups
Internal startups are a form of corporate entrepreneurship.Large or well-established companies often
try to promote innovation by setting up "internal startups", new business divisions that operate
at arm's length from the rest of the company. Examples include Bell Labs, a research unit within
the Bell System and Target Corporation (which began as an internal startup of
the Dayton's department store chain) and threedegrees, a product developed by an internal startup
of Microsoft.To accommodate startups internally, companies, such as Google has made strides to
make purchased startups and their workers feel at home in their offices, even letting them bring
their dogs to work.

12. EQUATION OF A
STARTUP
New
Business Innovation Technology Passion Start
up

13. WHAT STARTUPS MEANS

14. STARTUP
INDIA
ACTION PLAN

15. 5 ESSENTIAL ELEMENTS OF SUCCESS

16. BEFORE YOU
START
Your
Startup
Target
Audience
Size of
Users
Business
Size
B2B OR
B2C
Competitor
Analysis

17. CHOOSE
THE RIGHT
NEED

18. .
Building
Something that
nobody wants
(36%)
Hiring Poorly
(18%)
Lack of Focus
(13%)
Fail to execute
Sales and
Marketing (12%)
Not having the
right Co-
Founders (7.9%)
Not making sure
you have enogh
money(3.3%)
Chasing
Investors not
Customers
(5.4%)
Spending too
much
money(2.1%)
Failing to ask for
help (1.4%)
Ignoring social
media (7%)
TOP 10 Startups
Mistakes

19. TECHNOLOGICALADVANCEMENT&
ADVANCEMENTAREBRINGING
CHANGES
E Commerce wiping out middleman
Made the things more convenient for professionals
Capital & Technology replacing Labor
Consolidation of Market Players & making a market place

20. “YOU NEED THREE THINGS TO CREATE A SUCCESSFUL STARTUP:
TO START WITH GOOD PEOPLE,
TO MAKE SOMETHING CUSTOMERS ACTUALLY WANT,
AND TO SPEND AS LITTLE MONEY AS POSSIBLE.”
SUCCESS - 1