There’s a reason why a lot of the news articles and thought pieces you read about startup success all sound the same lately. It’s because the threads binding the strategy of unicorn-valuation growth are unraveling at a quickening pace.
To drive the point home, I liken this change in startup strategy to a similar shift that has changed the way we think of movies, because the changes are similar and separated by only a few years. Plus, everyone understands movies….Story continues….
Source: Everything About How Startups Succeed Is Changing in 2023 | Inc.com
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Critics:
Startups, shutdowns, and malfunctions (SSM) are periods of non-continuous operation in refineries, chemical plants or similar industrial facilities. During such temporary periods, these plants might emit larger amounts of pollution, and therefore the pollution abatement equipment may be unable to effectively control it. Recognizing this problem, beginning in 1994 the American Environmental Protection Agency (EPA) allowed such facilities to release large amounts of otherwise prohibited air pollution during SSM.
However, in 2002 and again in 2003 the EPA made regulatory revisions which seemed to increase the allowable periods of such non-compliance periods, which motivated a coalition of environmental groups to challenge the changes, by suing the EPA. These groups argued that these changes effectively neutralized the United States Clean Air Act.
The U.S. Court of Appeals for the District of Columbia issued a ruling on the lawsuit (19 December 2008), finding that allowing such SSM exemptions does violate requirements of the Clean Air Act, in that the CAA requires that some reasonable limit on a facility’s emissions of hazardous air pollutants must always be in effect. The American Chemistry Council, a trade association of industrial and chemical manufacturing companies, joined the EPA in the court’s defense actions.
An EPA spokesman said in late December 2008 that the agency is studying the decision to determine an appropriate course of action. 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, a 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
In startups, many decisions are made under uncertainty,[4] 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). 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. 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)
Founders or co-founders are people involved in the initial launch of startup companies. Three people are mainly required as co-founders to create a powerful team: the product person (e.g. an engineer), a marketing person (for market research, customer interaction, vision) and a finance or operation’s person (to handle operations or raise funds).
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.
The language of securities regulation in the United States considers co-founders to be promoters under Regulation D. The U.S. Securities and Exchange Commission definition of promoter includes: (i) Any person who, acting alone or in conjunction with one or more other persons, directly or indirectly takes initiative in founding and organizing the business or enterprise of an issuer; However, not every promoter is a co-founder.
In fact, there is no formal, legal definition of what makes somebody a co-founder. The right to call oneself a co-founder can be established through an agreement with one’s fellow co-founders or with permission of the board of directors, investors, or shareholders of a startup company. When there is no definitive agreement (like shareholders’ agreement), disputes about who the co-founders are, can arise
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