What Are The 4 Types Of Startups?
There is more than one type of startup and each approach has its own advantages and disadvantages for entrepreneurs.
As a budding founder, you might not be familiar with the options available to you - our goal with this guide is to make the paths ahead more clear.
There are typically four main types of startups: small businesses, lifestyle businesses, freelancers, and solopreneurs. Each type has its own benefits and drawbacks, so it's important to understand the approach needed for each one and what they can achieve.
Keep reading for a more in-depth breakdown:
Startups As Small Businesses
Small businesses are typically started with the intention of growing and scaling. They require significant investment and typically have a team of employees. Your typical new tech startup can fall under this banner.
Running a small startup has advantages because you can pivot easily to meet market demand. However, it can be difficult to secure funding and you may have to work long hours to reach profitability.
Many startups are launched with the eventual goal of being acquired, and often do not achieve profitability until they have been in business for several years.
Startups As Lifestyle Businesses
Lifestyle businesses are those that are designed to support the owner's lifestyle. They are usually smaller in scale and don't require as much investment.
These types of businesses can be easier to run, but they may not generate as much income as a small business. They’re more focused on slow and gradual growth than startups that are looking to scale rapidly.
The goal for lifestyle businesses is to turn a profit as soon as possible - with sustaining the founder financially in mind.
Understanding Freelancing
Freelancers are individuals who ultimately work for themselves. They may contract out their services to multiple clients or work on a per-project basis, and freelancers can be found in every field of expertise from content writing to project management and software development.
The great thing about freelancing is that you have complete control over your schedule and workload. However, it can be tough to find consistent work and you may not make as much money as you would with a traditional job.
Working for yourself means you are also liable for all of your own benefits like medical insurance, and you are not able to take advantage of offers like paid leave that some companies offer.
What Is A Solopreneur?
Solopreneurs are similar to freelancers but typically offer products or digital services. What makes them different however is that they are running their own businesses for themselves, while freelancers usually perform services for others as their main business.
As a solopreneur, you will be both founder and employee rolled into one. This can be a lot of pressure since everything is on you alone to deliver a good experience to your customers.
This is also the reason why solopreneurs will typically choose a single business focus to avoid being overwhelmed. Having one solid approach honed down to art can be extremely valuable, and there have been solopreneurs that have become very successful using this business model.
What All Founders Need
Most fast-growth companies struggle to build apps quickly enough to improve their business. We define, design, test and deploy software apps, so companies can run a more efficient and profitable business.
Imagine outsourcing all of the headaches around starting a new project - hiring a team, establishing processes, training, and more to an agency that has already done all that and more.
NineTwoThree Venture Studio is a successful venture agency with a significant track record of helping founders bring their app and startup ideas to life.
Having launched more than fifty apps and fourteen startups, our agency is unique because we know where you’ve been and where you want to go.
You don’t have time to waste. You need to get to market quickly to make sure you beat the competition - and we can be the ally in your corner.
We also take service one step further. Instead of talking to sales reps, schedule a discovery call with the founders who will understand you right away and give you honest and valuable advice.
Kickstart your journey to launch with us today!
