Start-up Support Executive PDF

**Start-up Support Executive** Unit - I ======== Practical -- ============ **What is Startup?** A startup is a young company established by one or more entrepreneurs to create unique and irreplaceable products or services. It aims at bringing innovation and building ideas quickly. What is a sta...

**Start-up Support Executive** Unit - I ======== Practical -- ============ **What is Startup?** A startup is a young company established by one or more entrepreneurs to create unique and irreplaceable products or services. It aims at bringing innovation and building ideas quickly. What is a startup company? ========================== A startup company is a newly formed business with particular momentum behind it based on perceived demand for its product or service. A startup intends to grow rapidly as a result of offering something that addresses a particular market gap. There are no fixed parameters on what type of company can be considered a startup, but the term most frequently applies to high-tech companies creating products that leverage technology to offer something new or to perform an existing task in a novel way. Many startup companies don\'t have products for sale, and many do not have a [revenue](https://www.techtarget.com/whatis/definition/gross-revenue) stream. Similarly, there are no firm rules on when a startup ceases to be considered a startup. Some experts suggest a startup stops being one when it hits a certain size, completes its path to profitability, receives a high level of investment funds, becomes a public company or is acquired by a larger corporation. **Startup funding** The genesis for startups is often the founder\'s concept for a product. Some originate once the founder has hit the subsequent step, at the [proof of concept](https://www.techtarget.com/searchcio/definition/proof-of-concept-POC) stage. The startup\'s founder often leads the development of the product and serves as the organization\'s business leader. They often focus on scaling the company ahead of making a profit. [Facebook](https://www.techtarget.com/whatis/definition/Facebook) did not make a profit until 2009, five years after Mark Zuckerberg founded the company while he was a student at Harvard University. **Type of Startup** - Scalable startups - Small business startups - Lifestyle startups - Buyable startups - Big business startups - Social startups In our modern world, where everyone strives to bring innovation, a good idea isn't enough to create a startup. To understand the features of different startups better, you need to review the following six types. - **Scalable startups.** Companies in a tech niche often belong to this group. Since technology companies often have great potential, they can easily access the global market. Tech businesses can receive financial support from investors and grow into international companies. Examples of such startups include Google, Uber, Facebook, and Twitter. These startups hire the best workers and search for investors to boost the development of their ideas and scale. - **Small business startups.** These businesses are created by regular people and are self-funded. They grow at their own pace and usually have a good site but don't have an app. Grocery stores, hairdressers, bakers, and travel agents are the perfect examples. - **Lifestyle startups.** People who have hobbies and are eager to work on their passion can create a lifestyle startup. They can make a living by doing what they love. We can see a lot of examples of lifestyle startups. Let's take dancers, for instance. They actively open online dance schools to teach children and adults to dance and earn money this way. - **Buyable startups.** In the technology and software industry, some people design a startup from scratch to sell it to a bigger company later. Giants like Amazon and Uber buy small startups to develop them over time and receive benefits. - **Big business startups.** Large companies have a finite lifespan since customers' preferences, technologies, and competitors change over time. That's why businesses should be ready to adapt to new conditions. As a result, they design innovative products that can satisfy the needs of modern customers. - **Social startups.** These startups exist despite the general belief that the main aim of all startups is to earn money. There are still companies designed to do good for other people, and they are called social startups. Examples include charities and non-profit organizations that exist thanks to donations. For instance, Code.org, a non-profit organization, encourages school students in the US to learn computer science. If you consider creating your startup, we've prepared five startup business ideas that will inspire you to develop something unique. **Startups Business Ideas** - Create an online grocery delivery service - Start a podcast - Develop a drop shipping business - Create an online language learning app or site - Consider developing a blog Before diving into one of the ideas on our list, you should define whether there's a demand for the startup idea you want to begin with. Consider researching your market first so that you can analyze the demand, supply, and what customers need. ### 1. Create an online grocery delivery service Nowadays, grocery delivery is a great business idea to get started with. To begin, you only need to have minimal setup costs, a vehicle, and a phone. People often have no time to shop offline for some reason. An online grocery delivery service is an excellent solution you can offer. It will provide your customers with all the necessary products at any time. Consider cooperating with local grocery stores to provide your clients with the best quality and a wider variety of products. One of the examples is Instacart, an app that allows users to pick up products and deliver them fast. ### 2. Start a podcast If you have profound knowledge or specialization in a particular field, you can create a podcast. The audience will appreciate your consistent, valuable, and relevant content. The main advantage of podcasts is that there's no point worrying about your [target audience](https://sendpulse.com/support/glossary/target-audience) being busy offline when you make your [sales pitch](https://sendpulse.com/support/glossary/sales-pitch). Great podcasts deliver expert information, build relationships with the listeners, and eliminate costs on other communication channels. Let's take The Birth Hour, for example. The podcast's hosts share different birth stories and pieces of advice for future moms. ### 3. Develop a drop shipping business This idea is especially enticing since you don't need to buy inventory upfront. Doing a [competitive analysis](https://sendpulse.com/support/glossary/competitive-analysis) will allow you to sell higher-end products with low shipping costs and obtain good profits. For example, Mooshe Socks, a small socks shop, does just that. ### 4. Create an online learning app or website If you are good at teaching, you can [start an online course](https://sendpulse.com/blog/create-online-courses). It can be anything: dance classes, yoga, meditations, or languages. By doing this, you can bring value to your students and share your knowledge with them. One of the great examples is Duolingo. The website enables people to learn foreign languages and take courses to increase and check their language proficiency. ### 5. Consider developing a blog The world is changing, and it's no secret that bloggers earn more than large business owners. Opinion leaders can make money by placing ads, writing sponsored posts, hosting webinars, providing readers with services, and offering ad space. That's why there's a point in creating breathtaking articles, videos, and stories on your website or social media platforms. Choose an industry you are interested in and create stories that will amaze your readers. It can be a blog about beauty, health, fashion, traveling, or sport. For instance, Greatist, a fitness and health Internet media startup, managed to gain the trust of many young people. If you aren't ready to start your own business, joining a startup company and obtaining valuable experience is a good idea. Reasons to Work in a Startup ---------------------------- Startups open the door not to a to-do list but rather to new possibilities and challenges that will let you grow with it. Let's jump to the main reasons to join a startup. - **Flexible schedule.** For sure, you'll have a lot of work to do, but you can schedule the tasks according to your own comfort. You just need to negotiate it with your boss. One more advantage is that you can work remotely from any part of the world. The only thing you need is a good Internet connection. - **Variety of tasks.** The opportunities and challenges you will face during your work in a startup will constantly change. This means that you will have a chance to adapt to the situation and master new skills to do the tasks needed for the further development of the project. - **Creative environment.** It's widely known that people who take risks and start new businesses have a lot of ideas and welcome creativity. They explore new approaches, products, and services to be original. That's why you should contact the founders who will help you see everything from a new perspective. - **Professional growth.** Working in a startup from the very beginning enables you to build a foundation of necessary skills and knowledge, gain experiences in different functional areas, and take responsibility for multiple tasks. Besides, as a business grows, you will grow as a professional by obtaining new career opportunities. - **Friendly team.** Since the majority of startups are small, you'll have the chance to get acquainted with all your colleagues personally. You'll also share your ideas and thoughts with your team to boost the company's success. Joining a startup is like becoming a part of a family. - **Career opportunities.** Sometimes a large company pays more than a startup can afford. However, in a startup, you can obtain new incentives and skills while doing completely different tasks. In the long run, you'll have irreplaceable experience as a professional. Let's now proceed to the steps to build a startup from scratch. **Steps to Building a Startup from Scratch** 1. Find a good idea 2. Develop a business plan 3. Ensure you have adequate capital 4. Choose the right people 5. Pick a location and design a site 6. Learn how to leverage digital marketing techniques 7. Create your customer base If you are interested in launching a startup on your own, it's critical to consider the following steps to achieve success. 1. **Find a good idea.** To be successful, entrepreneurs search for products and services that are in great demand among customers. Analyze the demand, customers\' needs and wants, and make sure that people actually need your product. You should also figure out whether your product will be able to attain at least ten clients. This will help you decide which product you want to create and in which direction to move. However, before putting your idea into practice, do your [market research](https://sendpulse.com/support/glossary/marketing-research) and [analyze your competitors](https://sendpulse.com/blog/competitor-analysis-tools). 2. **Develop a business plan.** Having an idea isn't enough since the process also requires a business plan. A business plan is a document that contains a company's objectives and ways to achieve its goals. It also includes a description of the business future and an outline of business strategy. Statistics show that people with a plan succeeded in obtaining investment capital and growing their startups. 3. **Ensure you have adequate capital.** There's no definite amount of money you need to start a business since the costs of a startup vary from one industry to another. Depending on the type of business and the situation, you'll need more or less funding. Some small startups without equipment and employee salaries might cost you approximately \$10,000, while other ventures might cost millions. The main source of financing is usually the entrepreneur's savings. 4. **Choose the right people.** You can't disagree with the fact that to solve all issues you need some additional help. However, remember to choose people whom you trust wisely. You'll need some employees and a manager to run a company. The number of workers depends on the industry you are in and how big your business is. Based on statistics, startups are small companies that have small teams. In general, startups consist of up to ten employees. 5. **Pick a location and design a site.** You need to have a physical and a web address so that customers can easily find your company. Consider buying or leasing a property to operate your business. Although purchasing it is significantly cheaper in the long run, you need to ensure you have enough costs. This way, you'll save funds and have a good investment in your future beginnings. [Design a site to promote your startup](https://sendpulse.com/blog/business-startup-website), take some pre-orders, and schedule possible appointments. Online presence is a must because it helps reach your target audience faster, promote products, and generate profit. SendPulse has a great [landing page builder](https://sendpulse.com/features/landing-page-builder) that will help you design a [landing page](https://sendpulse.com/support/glossary/landing-page) for your startup in just 15 minutes. 6. **Learn how to leverage digital marketing techniques.** You can have a great product, but you won't be able to promote it without various marketing techniques. Consider the following marketing strategies: [SEO](https://sendpulse.com/support/glossary/seo-optimization), [content marketing](https://sendpulse.com/support/glossary/content-marketing), [social media marketing](https://sendpulse.com/support/glossary/social-media-marketing), [email marketing](https://sendpulse.com/support/glossary/email-marketing), and [PPC](https://sendpulse.com/support/glossary/ppc). SendPulse allows you to inform your customers about your new product with the help of [email campaigns](https://sendpulse.com/support/glossary/email-campaign), [web push](https://sendpulse.com/support/glossary/webpush-notifications), [chatbots](https://sendpulse.com/support/glossary/chatbot), and [SMS](https://sendpulse.com/support/glossary/short-message-service). You can also take advantage of traditional methods such as print advertising, television, and radio. However, it's more helpful to adapt to new trends and use [inbound marketing](https://sendpulse.com/support/glossary/inbound-marketing). 7. **Create your customer base.** After developing a site, growing your digital presence, and becoming a good marketer, it's time to build a customer base. Create a convenient website to provide your consumers with a seamless experience and encourage them to come back. To get repeat customers, you need to provide high-quality products and excellent customer service. Your clients are your main priority, so treat them accordingly. You can also create [subscription forms](https://sendpulse.com/support/glossary/subscription-form) with SendPulse without even knowing HTML to build a customer base. Our world is changing very quickly, and innovations and new ideas come to replace the previous ones. Startups are a result of bringing new ideas to life as they change people's lives, solve their problems, and simplify their daily routines. With SendPulse, you can promote your startup for free. **What Are the Roles and Responsibilities of a Startup Executive** ================================================================== Most of us have thought about what it might be like to be entrepreneurs. Those of us who have actually done it know that it requires a lot of patience and skill. Otherwise, why would[ only 40%](https://smallbiztrends.com/2013/07/home-based-businesses-startup.html) of startups become profitable? A Startup Executive's job requires a diverse skill set, including sound decision-making, the ability to lead team members, developing partnerships, and seeing the big picture. A good Startup Executive needs to come prepared on a daily basis if they expect to succeed. This article will describe the responsibilities that every Startup Executive must have to be successful on the road to entrepreneurship. **What Are the Areas of Expertise of a** Startup Executive**?** --------------------------------------------------------------- The chief executive officer is the face of the company. They need to be able to speak with confidence and know how to communicate effectively with stakeholders and often a board of directors to grow their business. The Startup Executive has to be able to think on their feet and take risks when necessary. To be a successful Startup Executive of a startup, you have to be in touch with the latest developments in the industry and have a certain degree of expertise. A startup CEO needs to have an understanding of business development, legal affairs, marketing and advertising, product management, customer retention, and acquisition. **The following are some areas that are typically covered by a Startup Executive:** - **Business Development**: This includes understanding market trends, identifying competitors and developing new markets. - **Legal Affairs**: This includes understanding intellectual property rights, contracts, and agreements. - **Marketing & Advertising**: This includes understanding marketing strategy development as well as advertising tactics such as PR campaigns. - **Product Management**: This includes product development strategy as well as managing sales channels for the company\'s products or services. Responsibilities of a **Startup Executive** A Startup Executive is the head of a company and is responsible for its success. They are responsible for making sure that the company is running smoothly and that the employees are happy and engaged. Responsibilities include setting goals and objectives for the company and creating an [organizational structure ](https://www.saasacademy.com/blog/saas-company-org-structure)that will ensure smooth operations. However, there is more to a Startup Executive's job than just the above. Below are some major responsibilities a Startup Executive has to discharge: ### **1. Cash Flow and Resource Management** The most important thing for startup founders to remember is to not run out of money. It may sound obvious, but some Startup Executives wait too long to begin raising funds when reserves start to run out. It can take six to nine months to acquire [investment from VCs](https://www.saasacademy.com/blog/vc-funded-saas-startups), so the fundraising process needs to be in place long before the bank account is low. It helps to have a strong chief financial officer in place to help manage cash flow and communicate frequently with the CEO about available capital and anticipated [startup costs](https://www.saasacademy.com/blog/saas-startup-costs). ### **2. Investor management** Investors and stakeholders have to be kept in the loop. The Startup Executive has to manage communication with investors and stakeholders, ensuring that interests are being met. They also negotiate with the investors to get what they want for their investment. Stakeholders are an important part of any company. They\'re the people who have invested their time, money, and effort into a company that ultimately does what they asked for. However, not all stakeholders\' expectations align with what the company can deliver. When this happens, it\'s critical for Startup Executives to set expectations as close to each other as possible to maintain transparency and build trust. ### **3. Hiring Great People for Your Startup** There is no substitute for having great people to work with. That's why every Startup Executive should take a hands-on approach to hiring the key players in the organization, from the CFO and COO to the human resources and management teams. The key reason why a Startup Executive should not delegate the task of hiring a senior leadership team to anyone else is that they are the ones who have to lead the company, and they are ultimately responsible for its performance. It's the Startup Executive who will be working closely with the executive team. They are the ones most responsible for forging relationships with the senior leadership and working closely with them to create a shared vision for the company. Even with a great team in place, the process of [recruiting top talent](https://recruiterflow.com/blog/best-recruitment-crm-software/) is ongoing. Most high performers don't need a job, so the best Startup Executive's begin building a queue of talented individuals long before they are needed. ### **4. Purpose and Alignment** Companies that succeed are those that know what their purpose is as well as how to align their employees. The Startup Executive creates this by giving clear and concise communication of company culture, values, and mission so that everyone understands the vision and roadmap to success. They can no longer keep their focus on business growth and productivity by simply delegating this task to others. It is vital for a Startup Executive to create value and purpose for their company. The key to doing this is to be able to articulate what they are doing and why. If they can talk about their company\'s mission, values, and goals in an interesting way, their employees are more likely to remember them than if they just gave them a list of generic goals. ### **5. Company Culture and Work Environment** Culture is the foundation of a company\'s success. It can be everything from the way people dress to how they talk to what they eat. Culture is created by the Startup Executive, and they have to make sure that it\'s a place where employees are happy and productive. The Startup Executive is the only person with the power to create a company culture and a work environment that is conducive to productivity. Because it\'s their business and their reputation on the line, they are the ones who set the tone for what the company should be like, which can be difficult to do when you\'re managing a large team of people. **Skills and Qualities of a Startup Executive** ----------------------------------------------- A Startup Executive's skills and qualities are the most important factors in building a successful startup. They need to be able to make quick decisions, often with little information available. They also have to be good at managing their time and delegating tasks effectively. **Here are five indispensable skills that every Startup Executive must have:** ### **1. Long Vision** Having a vision that runs deep into the future is essential for a Startup Executive. They have to be able to see what they want from the company 5 or 10 years down the line. Their long-term [business plan](https://www.saasacademy.com/blog/what-is-a-business-playbook) helps them anticipate what has to be done in order for their company to grow and what steps it needs to take. They also need patience and forethought because it takes time for things to happen, especially when they are trying to grow your business. ### **2. Sales and negotiation** Startup Executives are ultimately responsible for the company\'s operations, so they have to be good at sales and negotiations. They will have to negotiate with suppliers and convince them to give discounts and deals. To achieve this, they must know how to sell themselves. Startup Executives also need to be good salespeople, so they can convince investors to put money into their ideas. There is a lot of competition in the market, which means that Startup Executives have to be able to sell themselves as well as their company\'s products. ### **3. Team building and leadership skills** Team building and leadership skills are crucial for the success of a Startup Executive. They have to be able to work with people and motivate them to achieve their best performance. Recruiting a team of high-performing professionals and managing them effectively is integral to a company's success, which is why a Startup Executive should be able to work well with other people in different departments and understand the fundamentals of how they work. ### **4. Communication skills** Startup Executive's can't just rely on their employees and the public for communication. The Startup Executive should have their own communication skills that they can rely on to get their point across. They are responsible for building trust with their audience and communicating their points. If they don\'t have good communication skills, it will be harder for them to build this trust and maintain a professional image. ### **5. Resilience** In the modern business environment, it is not enough to just be a good leader. They must also be able to handle the pressures and stress of being a Startup Executive. Resilience is key in this aspect. Its importance is often overlooked and is one of the most important traits that a Startup Executive should have. It\'s not only about being able to handle stress and pressure, but also about knowing when to take a break, listen to your gut, and get out of the office when you need it. Startup Executives are constantly under pressure from stakeholders outside the company. They need to be able to handle these pressures while still leading the company with confidence and having a positive impact on those around them. Core competencies are a major strategic advantage your business can have over its competitors. They can be verifiable **technical competencies** (such as achievements, skills, knowledge, and expertise) or **non-technical competencies**. Many companies have the same technical competencies: educated employees, skilled programmers, talented artists, etc. The immeasurable non-technical competencies are what sets some companies apart and help determine which startups, although they may be similar to many others, will succeed. Non-technical competencies are personal and professional skills that cannot easily be measured. Some examples of these skills include accountability, ethics, and competitiveness. Screening for certain non-technical competencies -- and improving these skills in current staff members -- is vital to business success, especially in a startup that is just beginning to gain influence. When hiring, employers often look closely at a job candidate's skills and forget to look at his or her attitude. This oversight can cause you to hire someone who is qualified but a bad fit overall for the company. In a startup, where agility, innovation, and focus are key, some of the most important non-technical competencies to look for are listed below. - **Focus**\ You need staffers who can really focus on your startup's mission. All of your long- and short-term goals and tasks must align with your company's mission and vision. Mastering this core competency means being able to effectively visualize, develop, and communicate your mission and goals with your entire team. Establish your primary focus and make sure that your entire team understands how each of their roles aligns with the end-goals of your company. - **Entrepreneurial Empowerment**\ Startups are filled with entrepreneurial individuals who believe in their work and want to make a significant contribution to their company and community. Take advantage of their talent and vision by empowering them to make a difference in your company. Allow them to set their own goals that are consistent with company goals, and give them the freedom to do their jobs and resolve issues according to their own work style. Help employees feel confident in their ability to be successful in their jobs, make decisions, lead others, and give them ownership of their responsibilities. In a startup where many employees are busy with multiple responsibilities, the ability to work independently and effectively is essential. - **Communication**\ It's possible for both large and small companies to have bad communication channels. Make sure that all of your employees are well informed by putting multiple strategic communication channels in place (email, newsletters, etc.). Invest time in communicating information regularly and consistently. If your startup is based virtually, invest in project management software. If your startup is office-based, have meeting rooms and inspire a culture of open collaboration across the floor. Ensure that everyone is kept informed about new developments, even if they are on other teams, and that all information shared is professional and appropriate. - **Opportunity Recognition**\ Employees in a startup should be adept at recognizing and seizing profitable business opportunities, such as potential new clients, suppliers, and partners. And they should be able to take calculated risks to pursue the kind of valuable opportunities that will lead to achieving business goals. - **Innovation**\ Startups need to be agile and innovative. The capacity and desire to develop and support something new is one of their great strengths. In order to be innovative, startups need employees who are personally invested in developing new products, services, methods, or approaches. They should actively propose new ideas and technologies to better accomplish your goals. This kind of non-technical competency also involves working well with others in order to innovate. - **Stress Management**\ Startups are often high-stress environments, especially since one employee is likely to be in charge of multiple jobs. Startup employees need to have diverse skills and be able to handle many projects, clients, and tasks at once. This means that being able to efficiently function when under duress is important for startup work. In addition to being able to remain calm under stress, employees should also maintain self-control, even when being provoked. Finally, having this type of non-measurable competency also entails an understanding of self; employees should know their limits and manage their own behaviors to avoid or reduce stress. - **Flexibility**\ Startup employees must often wear many "hats." Your graphic designer may also have to create copy for marketing pieces. The general manager of a winery may sometimes have to work in the tasting room and take care of customers. In order to succeed in a startup environment, employees need to be flexible in terms of their willingness to try new and different tasks and approaches. They must be open to others' perspectives and be able to switch between strategies and methods when needed. **Evaluation is Key** After establishing that a candidate has the required technical competencies (i.e. a necessary college degree or certification), non-technical competencies become the main indicators of whether a potential employee will excel in his or her job. This is why so many companies evaluate beyond a resume and use qualified assessment tools to understand and measure candidate competencies. Startups have many advantages over larger and more established companies. Startups are smaller -- they usually have only a handful of permanent employees -- so it's easier to communicate and hold company-wide meetings, and they can build solid foundations from the ground up. Startups have a clean slate and can create their brand image without prejudice or any other preconceived assumptions. If a startup is careful to make sure that employees have the core competencies listed above, they will also have a workforce that's primed for success. **What Is Organizational Structure?** Organizational structure is the backbone of all operating procedures and workflows at any company. It determines each employee's place and role in the business and is key to [organizational development](https://whatfix.com/blog/organizational-development/). An organizational structure outlines how responsibilities and roles are assigned and grouped throughout an organization. A clear structure allows every team member to be involved. When employees know what they're responsible for and who they report to -- which isn't the case in many fast-growing companies -- they're more likely to take ownership of their work.  Having a documented organizational structure in place enables employes to improve efficiency and provides clarity for each individual employee and business unit. With this clarity, departments can become more focused on how their actions and goals drive business outcomes. To build an org structure, you need to consider your business size, life cycle, goals, and positioning. Apart from considering the current environment your company operates in, you should also think of where you want to see the organization in five years, a sign of [organizational health](https://whatfix.com/blog/organizational-health/). Basic Elements of Organizational Structure Design ------------------------------------------------- An organizational structure is based on a range of elements, including: - Work specialization - Departmentation - Chain of command - Span of control - Centralization/Decentralization - Formalization ### Work specialization Work specializations define how responsibilities are split between employees based on the job description. It's used to split projects into smaller work activities and assign digestible tasks to individual employees. The most common results of improper specialization are low efficiency and burnout. ### Documentation [Documentation](https://whatfix.com/blog/process-documentation/) is an act of grouping specialists on the basis of the job description, skills, location, or other factors that connect them.  The biggest challenge is choosing the criteria for departmentation. In many cases, it's no more enough to apply functional departmentation -- where employees are grouped based on the tasks they perform. Startups often go for matrix departmentation that involves combining two types of departmentation and takes the best out of both worlds. For instance, functional departmentation can be joined by geographical departmentation to better serve clients in different locations. ### Chain of command Chain of command represents a system for passing instructions and reporting within an organization. Ideally, it distributes the power, supports [knowledge sharing](https://whatfix.com/blog/knowledge-sharing-culture/), and encourages [employee accountability](https://whatfix.com/blog/hold-your-employees-accountable/). The traditional chain of command makes decision-making more complex and does not allow for much flexibility. On the contrary, modern approaches strive to enhance employee autonomy and avoid micromanagement. ### Span of control Span of control regulates the number of direct reporters managed by a single supervisor. It heavily depends on the three aforementioned elements of organizational structure. Furthermore, to identify the right span of control, you need to evaluate your leaders' capacity, workplace size,  and experience level of employees. ### Centralization and decentralization Centralization and decentralization are the concepts defining how managers, as well as employees, give input on company goals and strategy. While centralization gives leaders the ultimate control over decision-making processes, decentralization allows employees to impact business decisions.  ### Formalization Formalization determines to which extent business processes, policies, and job descriptions are standardized. It may regulate communication between employees and managers, workplace culture, operational procedures, etc. Centralized vs. Decentralized Organizational Structures ------------------------------------------------------- All organizational structures are either centralized or decentralized. When designing an organizational structure, leaders must decide which is best for your company. Here are the differences between the two: ### Centralized organizational structure centralized.png In a centralized organizational structure, decisions are made by high-level managers and are distributed down the chain of command.  Centralized organizational structures have a range of advantages, like clear responsibilities, better [process governance](https://whatfix.com/blog/process-governance/), and a straightforward chain of command. It places decision-making responsibilities on leadership who can foresee the long-term impact of important decisions. The biggest drawback of a centralized organizational structure is the time the decision-making process takes in large companies. For example, individual team managers must run requests up the chain of command before going forward. For GTM and customer-facing teams, this can slow down the customer experience, resulting in missed opportunities and poor service. It can also hamper companies' ability to innovate, with centralized organizations being less agile and nimble than decentralized ones. Often, it's recommended that early-stage startups and small businesses design a centralized organizational structure.  ### Decentralized organizational structure  In a decentralized structure, lower-level employees identify issues and make decisions without communicating them up the chain of command to upper management. Greater autonomy empowers employees to take action, eliminating process delays, enabling employees with confidence to make decisions, and driving growth. Even in decentralized organizations, clear hierarchies still exist. The c-suite, directors, and other leadership roles still operate at a higher capabilities than new and entry-level employees. However, teams can make decisions without approval from centralized leadership, allowing them to act fast and take ownership of their areas of expertise. This type of structure is common for fast-growing companies, companies with regional markets, and emerging industries. A decentralized structure makes it more accessible for employees to navigate different roles and work on what's most impactful at that time in a company's lifecycle. **Common organizational structures** 1. Hierarchical organizational structure ---------------------------------------- ochart.png  The pyramid-shaped organizational chart we referred to earlier is known as a hierarchical org chart. It's the most common type of organizational structure---the chain of command goes from the top (e.g., the CEO or manager) down (e.g., entry-level and lower-level employees), and each employee has a supervisor.  ### **Pros **    - - - - - ### **Cons** - - - 2. Functional org structure --------------------------- forg.png  Similar to a hierarchical organizational structure, a functional org structure starts with positions with the highest levels of responsibility at the top and goes down from there. Primarily, though, employees are organized according to their specific skills and their corresponding function in the company. Each separate department is managed independently.  ### **Pros** - - - - ### **Cons** - - - 3. Horizontal or flat org structure ----------------------------------- horg.png  A horizontal or flat organizational structure fits companies with few levels between upper management and staff-level employees. Many startup businesses use a horizontal org structure before they grow large enough to build out different departments, but some organizations maintain this structure since it encourages less supervision and more involvement from all employees. Pros     - - - Cons - - - 4. Divisional org structure --------------------------- In divisional organizational structures, a company's divisions have control over their own resources, essentially operating like their own company within the larger organization. Each division can have its own marketing team, sales team, IT team, etc. This structure works well for large companies as it empowers the various divisions to make decisions without everyone having to report to just a few executives.  Depending on your organization's focus, there are a few variations to consider. ### Market-based divisional org structure Divisions are separated by market, industry, or customer type. A large consumer goods company, like Target or Walmart, might separate its durable goods (clothing, electronics, furniture, etc.) from its food or logistics divisions.  morg.png  ### Product-based divisional org structure Divisions are separated by product line. For example, a tech company might have a division dedicated to its cloud offerings, while the rest of the divisions focus on the different software offerings---e.g., Adobe and its creative suite of Illustrator, Photoshop, InDesign, etc. porg.png  ### Geographic divisional org structure Divisions are separated by region, territories, or districts, offering more effective localization and logistics. Companies might establish satellite offices across the country or the globe in order to stay close to their customer gorg.png  Pros - - - Cons - - - 5. Matrix org structure ----------------------- matrix.png  matrix2.png A matrix organizational chart looks like a grid, and it shows cross-functional teams that form for special projects. For example, an engineer may regularly belong to the engineering department (led by an engineering director) but work on a temporary project (led by a project manager). The matrix org chart accounts for both of these roles and reporting relationships. Pros - - - Cons - - 6. Team-based org structure ---------------------------  team1.png It'll come as no surprise that a team-based organizational structure groups employees according to teams---think [Scrum teams](https://www.lucidchart.com/blog/how-to-build-a-scrum-team-structure?anonId=0.37da98d919136866e6d&sessionDate=2024-08-09T10%3A00%3A52.266Z&sessionId=0.8e619a4b19136866e75&usecase=orgchart) or [tiger teams](https://www.lucidchart.com/blog/why-use-tiger-teams?anonId=0.37da98d919136866e6d&sessionDate=2024-08-09T10%3A00%3A52.266Z&sessionId=0.8e619a4b19136866e75&usecase=orgchart). A team organizational structure is meant to disrupt the traditional hierarchy, focusing more on problem-solving, cooperation, and giving employees more control. Pros - - - - - - Cons - - 7. Network org structure ------------------------  net.png These days, few businesses have all their services under one roof, and juggling the multitudes of vendors, subcontractors, freelancers, offsite locations, and satellite offices can get confusing. A network organizational structure makes sense of the spread of resources. It can also describe an internal structure that focuses more on open communication and relationships rather than hierarchy. Pros - - - - Cons - - Consider the needs of your organization, including the company culture that you want to develop, and choose one of these organizational structures. 8. Process-based structure --------------------------  process1.png A process-based structure organizes employees into groups or departments based on steps of a process. The leader of the company is listed at the top, as they oversee all processes. Each step of the process has a supervisor and employees who do work in that process. The chart reads from left to right. One process can not begin until the process before it is completed.  ### Pros  - - ### Cons - - 9. Circular structure ---------------------  A circular organizational structure puts leaders of the organization at the center rather than the top so they can share information outward rather than pass it down a chain of command. Employees in different departments are also seen as part of a larger whole rather than siloed off by department. ### Pros - - ### Cons - - 10. Line structure ------------------ A line structure is one of the simplest organizational structures as authority flows from top to bottom. Each department is ran by a manager and works toward a common organizational goal. ### Pros - - ### Cons - - - **Employment opportunities** Why work at a startup? There are several career-building and personal benefits employees enjoy when working with Startup Company. Following are the reasons: Career growth When you take a job with a startup company, you know ahead of time that the business plans to expand rapidly. This expansion can provide many opportunities for you to transition quickly into higher-level roles as the company\'s needs change Diversity of responsibilities It\'s likely that working with a startup will provide you a broad range of responsibilities. With limited staff and resources, you can take part in projects that you might miss out on in a more traditional job. For example, you may need to perform IT duties, marketing tasks and administrative responsibilities Passion and excitement A hallmark of startups is their energy and excitement. The newness and potential for success can create a positive, motivating environment that employees enjoy being a part of each day. When everyone shared a common goal of building the business, it enhances employee commitment and productivity Personal development Working at a startup can provide personal growth. You will need patience, determination and persistence to help launch or grow a new company. Team members must learn to recover from setbacks quickly without losing their drive Atmosphere Startup companies often design informal, nontraditional work environments. These perks can attract employees who want less structure and more freedom at work. Some companies may offer: - Relaxed dress code - Meals and snacks - Games and activities at work - Team-building activities - Nontraditional office set-ups, like co-working spaces and rest areas Opportunities for learning Working closely with company founders and executives can provide opportunities to learn many facets of [business development](https://www.indeed.com/q-business-development-jobs.html). Because startups generally have fewer employees and diversified duties, you can expect to learn many new skills on the job Creativity In some traditional work environments, creative thinking is less important than hitting goals and fulfilling your daily responsibilities. However, innovation and forward-thinking are crucial to the success of a startup. Leaders need creative perspectives and ideas to help the company progress. In a startup, your supervisors may invite you to brainstorming sessions, have scheduled time for free thinking or give positive recognition for sharing your creative recommendations Independence Your supervisors at a startup are typically working long hours and monitoring a long list of projects. As a result, you may spend much of your time working independently with little oversight **Formation of Start-up** 9 Steps to Help You Start a Startup ----------------------------------- If you've never started a business, the first time can be a little scary. Especially because it takes a lot of hard work and planning. On top of this, only about half of all businesses survive five years or longer.^1^   Luckily, there are 9 basic [strategies for startups](https://www.thehartford.com/business-insurance/strategy/startup/expansion) you can follow to help get your company up and running: 9 Steps to Help You Start a Startup ----------------------------------- If you've never started a business, the first time can be a little scary. Especially because it takes a lot of hard work and planning. On top of this, only about half of all businesses survive five years or longer.^1^   Luckily, there are 9 basic [strategies for startups](https://www.thehartford.com/business-insurance/strategy/startup/expansion) you can follow to help get your company up and running:   ### 1. Start with a Great Idea Your first step in learning [how to start a business](https://www.thehartford.com/business-insurance/strategy/how-to-start-a-business) is to identify a problem and solution. This is because successful startups begin from business ideas that fill the needs of a group of customers. But your idea doesn't always have to be a new one. You can update existing products or services in a way that's better for the consumer. This can be as simple as:   - - - For instance, Apple started from Steve Jobs' original idea for a computer and has since created enhanced versions that better fit the market. They've also continued to evolve newer products like iPhones and iPads, making them more useful with each update. One example is how they're adding a keyboard for iPads that'll make them easier to use like a laptop.^2^ All these innovations by Apple led to them being worth of over a billion dollars.   ### 2. Make a Business Plan Once you have an idea, you'll want to start building a business plan that describes your products and services in detail. It should include information on your industry, operations, finances and a market analysis.   [Writing a business plan](https://www.thehartford.com/business-insurance/strategy/writing-business-plan) is also important for getting financing for your startup. Banks are more likely to give loans to companies that can clearly explain how they're going to use the money and why they need it.   ### 3. Secure Funding for Your Startup The cost of a startup is different for every business owner. However, no matter what your costs are, you'll likely need to get [startup financing](https://www.thehartford.com/business-insurance/strategy/startup/money) from:   - - - - You can also apply for a business credit card. Many companies offer 0% APR promotions, which means you won't pay interest on your purchases if you pay off the balance before the end of the offer period. We've partnered with Fundera, which put together a list of the top credit cards offering 0% interest rates.   If you don't get the right amount of funding or can't raise money for your business, you'll risk not being able to pay your operating costs. This may cause you to close your doors. In fact, it's estimated that 29% of startups fail because they run out of money.^3^   To make sure you get the right amount, you'll want to estimate your costs and cash flow, including the interest rates on your loans. Once you do that, you can use QuickBooks or FreshBooks to track your expenses and help you stick to a budget.   ### 4. Surround Yourself With the Right People There can be a lot of risk in starting a business. That's why you'll need [essential business advisors](https://www.thehartford.com/business-insurance/strategy/how-build-startup-team/essential-advisors) to help guide you along the way, like:   - - - - [Building the right startup team](https://www.thehartford.com/business-insurance/strategy/how-build-startup-team) is especially important in the [early stages](https://www.thehartford.com/business-insurance/strategy/how-to-start-a-business/early-stage-startup) of small businesses. This means you'll want to carefully select your:   - - - ### 5. Make Sure You're Following All the Legal Steps From designing your product to setting up your workplace, opening your dream startup can be a lot of fun. But before you officially enter the market, you'll want to take the right legal steps to give you the best chance at success, including:   - - - - - - - ### 6. Establish a Location (Physical and Online) Whether you need to establish a manufacturing facility, [set up an office](https://www.thehartford.com/business-insurance/strategy/setting-up-office) space or open a storefront, you'll want to determine if [leasing or buying a property](https://www.thehartford.com/business-insurance/strategy/setting-up-office/lease-buy) is right for you. In many cases, you can get tax deductions for managing a commercial space, which is a benefit to owning your own place. You'll also be able to rent it out to make extra income.   However, one reason startups lease in the beginning is so they can invest their money into other aspects of the company. Leasing can also be a cheaper way to get your startup in a prime location. Keep in mind that rent prices can spike unexpectedly, which can force you to spend more or move. You also won't build any equity while you lease.   In today's digital era, it's important to set up an online presence and e-commerce platform. In fact, you'll have trouble being successful without it. This is because customers are increasingly shopping online and using google to find out more information on your products. On top of this, websites offer advantages like:   - - - You can enhance your online presence even more by starting a blog. This can help you establish yourself as an expert in your field. You can also use search engine optimization (SEO) to increase your brand's visibility on Google searches. And it's always a good idea to post on social media platforms, where your audience visits frequently.   ### 7. Develop a Marketing Plan Every startup needs to spend different amounts of money and time on marketing. It's an important expense, because it helps you:   - - - - - Some [startup marketing](https://www.thehartford.com/business-insurance/strategy/startup/marketing) activities you should look into include:   - - - - ### 8. Build a Customer Base In order for your startup business to have long-term success, you'll want to build a customer base. These loyal customers can help with:   - - - Some ways you can attract and retain customers include:   - - - - - - On top of this, the International Council of Shopping Centers (ICSC) found that 92% of consumers said their loyalty to specific retailers was because they offered prices that were fair and matched the value of their product, while 79% said it was because of product quality.^4^   ### 9. Plan to Change Startups change drastically within their first few years in operation. A key to success is to evolve and adapt your business model to your market and industry.   Some strategies to make sure you're prepared to adapt are:   - - - Remember, it's businesses that are willing to evolve with consumer expectations that are able to establish themselves for years to come. **Frequently Asked Questions on Startup Registration India** **Who can register with startup India?** An entity incorporated as a Private Limited Company, Partnership Firm or a Limited Liability Partnership can register themselves under the startup India scheme. The annual turnover of these business entities should not exceed Rs.100 crores, and they should have been in existence for up to ten years from the date of its incorporation/ registration. Such an entity should be working towards innovation, development or improvement of products or services or processes. **What are the benefits of signing up with startup India?** There are a number of benefits startups receive under the Startup India Initiative. Nevertheless, in order to avail of these benefits, an entity is needed to be recognised by the DPIIT as a startup.\ \ Startups are allowed to self certify their compliance with six labour laws and three environment laws. This is allowed for a total period of five years from the date of incorporation/registration of the entity. Startups are allowed a three-year tax exemption and the best intellectual property services and resources solely built to help startups protect and commercialize their IPRs. **What kind of business structure should I choose for my startup?** The most preferred business structures for a startup are Private Limited companies and LLPs. A Private Limited company is legally recognized and generally favored by investors. However, it has stricter compliance and may have a higher cost of incorporation.\ \ Whereas incorporation cost is lower for LLPs and they tend to have relaxed compliance in comparison to the Private Limited Companies. In addition to that, LLPs have limited liabilities and are equally recognized by investors and all over the world. **What can I do to attract investors to a start-up?** To attract investors, not only do you need a stellar product with a scalable model, but you also need visibility. Make sure that your product receives healthy engagement and traction. You'll need to register your startup on startup India and proactively seek out investors. Make sure you are able to effectively communicate your business idea to the investor and the sustainability of your business model. **Can a foreign company register under the Startup India hub?** Any entity that has at least one registered office in India can register itself on the hub, since the location preferences, for the time being, are only created for Indian states. However, soon the government hopes to start registrations for stakeholders from the global ecosystem too. **What is the difference between an accelerator and an incubator?** Startup incubators are typically institutions that help entrepreneurs by developing their business, especially in the initial stages. The incubation function is usually carried out by institutions that have experience in the business and the tech world.\ \ Startup accelerators support early-stage, growth-driven companies. These programmes usually have a timeframe in which individual companies spend anywhere between a few weeks and a few months working with a group of mentors who are educated and may also provide financial help. **For how long is a company recognized as a startup?** Any business entity that has completed 10 years from the date of its incorporation/registration, and has exceeded the previous years turnover of Rs.100 crores shall stop being a startup on completion of 10 years from the date of its registration/incorporation. **Can an existing entity register itself as a "Startup" on the Startup India Portal?** Yes, as per the law an existing entity can register itself as a startup, provided that it meets the prescribed criteria for a startup. They will also be able to avail various tax and IPR benefits that are available to startups. The criteria are the same as those mentioned in the article above. **How do I know my registration is complete?** Once the application is complete, and the startup gets recognized, you will receive a system-generated certificate of recognition. You will be able to download this certificate from the Startup India portal. **Does a startup need to be registered in India?** Yes. To get register a startup with the Startup India website and get startup benefits, it needs to have at least one registered office in India, since the location preferences, for the time being, are only created for Indian states. However, soon the government hopes to start registrations for stakeholders from the global ecosystem too. **What should I do when my password is showing as invalid at the time of registering my company on the startup India portal?** Please note that the password you enter for registering on the startup portal must contain 8 to 15 characters, out of which it must contain at least one lowercase letter, one uppercase letter, one numeric digit, and one special character. The portal will accept only a password that contains all these requirements. **How to write the startup activities section on the startup recognition form to ensure it is accepted?** A startup is registered with an objective to solve a problem. For a startup to be registered with the Startup India initiative, it must be working towards innovating something new or improving the existing technology to solve a problem. Thus, in the 'Startup Activities' section on the 'Startup Recognition Form', you must write the details on what problem is your the startup solving, what does your startup propose to solve the problem, i.e. the solution, the uniqueness of your solution, i.e. innovative nature of your product or service and what is the revenue-generating model of your startup. **Startup Registration India -- 7 Steps to Register your Startup** Startups are booming in India. The government is also supporting young entrepreneurs to establish startups. Startups help to boost the country\'s economy. A [**[startup]**](https://cleartax.in/s/startup-india-tax-exemptions-eligibility) is a business that offers **innovative products or services** that provide solutions to a problem existing in society. A startup may also redevelop a current product or service into something better. **Startup India** The Government of India, under the leadership of PM Narendra Modi, has started and promoted the **Startup India initiative** to develop the Indian economy, recognise and [promote startups](https://cleartax.in/s/11-benefits-to-startups-by-indian-government) and attract talented entrepreneurs. **Steps to Register Your Startup With Startup India** registration.png ### **Step 1: Incorporate your Business** You must first **incorporate your business as** a Private Limited Company, Partnership firm or a Limited Liability Partnership. You have to follow all the normal procedures for registration of any business like submitting the registration application and obtaining the Certificate of Incorporation/Partnership registration. You can incorporate a [Private Limited Company](https://cleartax.in/services/private-limited-company/p) or a [Limited Liability Partnership (LLP)](https://cleartax.in/services/limited-liability-partnership/p) by filing the registration application to the Registrar of Companies (ROC) of your region. You can establish a [Partnership Firm](https://cleartax.in/services/partnership/p) by filing the application for registration of your firm with the Registrar of Firms of your area. You need to submit the required documents and fees to the Registrar of Companies or Registrar of Firms along with the registration application. ### Step 2: Register with Startup India Then the business must be registered as a startup. The entire process is simple and online. Visit the [Startup India website](https://www.startupindia.gov.in/content/sih/en/home-page.html) and click on the 'Register' button as shown below.  Enter your name, email ID, mobile number, password and click on the 'Register' button. Next, enter the OTP which is sent to your email and other details like, the type of user, name and stage of the startup, etc., and click on the 'Submit' button. After entering these details, the Startup India profile is created. Once your profile is created on the website, startups can apply for various acceleration and incubator/mentorship programmes on the website, along with getting access to learning resources, funding options, government schemes and market access 30092022\_Startup-India-1.png