Definition

A startup is when one person or several people—called entrepreneurs—attempt to design a business.

Design

To design means to imagine something that does not yet exist and then to bring this thing into being.

In startup, the team has imagined a business and they are trying to make this business a reality.

Business

A business is a system that provides a product to customers on an ongoing basis and produces a net outflow of money, aka profit.

A product is a good or a service.

Notes

1. In the definition, we say attempt to design. When a startup fails, this means that the approach to design was flawed.

2. Failure of a startup means that the work of startup did not create a sustainable business. Failure is quite common.

Examples of Successful Startups

Existing businesses were once startups. Thus, we can look at an existing business and learn its history to find an example of startup.

1. In 1976, Steve Jobs and Steve Wozniak thought that people would want computers that were cheap enough to use at home. So they, along with Ronald Wayne, launched a startup called Apple.

2. In 1975, Tim Leatherman came up with the idea of combining a pocket knife with pliers. So he designed a product. Unable to interest any company in this product, he launched his own startup which became the Leatherman company; see the Leatherman Story.

   Note: If you read the history of startups, then you will learn a great deal about how to succeed. For example, it took Tim Leatherman about eight years to go from his idea to his first order because startup is challenging.

3. Note: One of the best ways to get examples of startups is talk to a business owner and ask them to tell you their story of how they got started.

Rationale

There are many reasons why it is worthwhile to learn startup and to succeed in startup.

1. Better World. Make the world a better place. Think of great products and what they have done for us. Some organizations that come to mind are Boeing, Apple, Microsoft, Google, Harvard, a local restaurant that I love going to, Wikipedia, the American Red Cross, Amazon, Wal Mart, and so on.

2. Financial. Most jobs involves a salary that is fixed by the market. However, when one starts a business there are no limits. Of course, one can loose all their money also. Startup is risky.

3. Mission. You might have an idea that only you can bring into the world. Starting a business may be the path for achieving your purpose in life.

Facts about Startup

Who? Anyone can launch a startup.

When? A startup can be launched at any time.

How much? Usually, creating a startup takes a huge amount of work and involves large costs. It is common for startups to get money from investors who then expect to get a high return for their investment.

Relationships

1. The Design BookCourse presents a way to design that applies to startup.