Start-up Business Ideas | Types of Start-up Firms

Updated: Dec 6, 2020

Are you thinking of what kind of start-up business you should start? Are you undecided of what you really want?

This article about start-up business ideas might help you, especially if you're at the verge of leaving your job to start a business.

The decision to own and manage your own business can be very exciting and terrifying at the same time.

You're probably excited because you'll be able to be your own boss, put your own ideas into action without another person's approval, and set your own work schedule. These are just some of the benefits of owning a business.

On the other hand, you might be terrified of what the future holds for you as an entrepreneur. You might be afraid to lose a significant amount of, or worse, your entire capital. Business failure at one point or another is actually part of this game called entrepreneurship.

Starting and growing a business requires more than just desire or passion. Rather, it requires thorough assessment, planning, organization, implementation, monitoring or supervision, and evaluation activities. And yes, it can be much harder than you think.

But if you still decide to take your chances on this back-breaking yet rewarding career, then you should at least have an idea of the types of start-up firms. It'll help you decide what kind of start-up business suits your goals and objectives.

1 Start-up firm that replaces your salary.

If you're just looking for a kind of business that is capable of generating a comparable salary to what you're earning as an employee, focus on salary-substitute firms. You pursue this type of business as a substitute for a conventional employment.

The type of products or services you create are very common. It also does not require much creativity or innovation as compared to entrepreneurial firms.

Some examples of this kind of business include salons, dry cleaners, restaurants, retail stores, pawnshops and printing shop.

2 Start-up firm that allows you to live the lifestyle you want

If your goal is to have more control over your time to live life as you want and earn money at the same time, you are more inclined in opening a lifestyle firm.

A lifestyle start-up business promotes a hobby, sport, or any other pastime. This type of business may take a while before earning a significant amount of monthly income and customer base.

You may also want to consider the following:

  • seasons/ weather in your country,

  • geographical features, and

  • the people's interests and socioeconomic background.

Related Post: Interesting Lifestyle Business Ideas

All these may affect your business' potential to grow.

Some examples of lifestyle businesses include tour guide, wine clubs, boating rentals, ski lessons, archery lessons, and music school.

Related Post: What Factors Are Influencing Growth of Entrepreneurship?

3 Start-up firm that deliver creative and innovative products and services

If you want a business that has the highest potential to grow, conduct a deeper research about entrepreneurial firms.

Entrepreneurial firms are those businesses that thrive because they focus on rendering highly creative and innovative products and services.

Related Post: Techniques to Find Business Opportunities

It is very common for entrepreneurial businesses to:

  • continuously conduct local and global markets research,

  • find ways how to deliver products or services in a new way,

  • determine what problems people are experiencing and provide solutions for them, and

  • fill the gaps in the market.

Some examples of this type of firms include Google, Facebook, LinkedIn, and Pinterest. Have you noticed the common thing about these firms? Yes, you're right! They have created creative and innovative ways to reach out to people and significantly gain their interest.

Use the power of today's technology and you'll probably be on your way toward becoming a successful entrepreneur.

Blogging, can be a lucrative entrepreneurial career you may want to start today.

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Final Words

Generally, both salary-replacement and lifestyle business have limited potentials for growth. They don't require much creativity and innovation from the owner or manager, unlike an entrepreneurial business.

Understanding your future goals and objectives can further help you determine which of these types of start-up firms you'd want to dedicate your time. Passion is also a key element in any type of business venture.

You must also develop the essential traits of entrepreneurs to increase your edge of success.

Related Post: 3 Major Characteristics of a Successful Business

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