Akwa Ibom State University (AKSU) is a conventional academic institution whose vision seeks to keep aflame the pursuit of Knowledge, Excellence and the spirit of enquiry. AKSU also offers opportunities for Learning and Leadership, Service and Self-actualization to all mankind, towards a Peaceful, Humane, Prosperous and just Society.

Saturday, August 13, 2016

Weekend Entrepreneurship ideas ...Startup business

A startup is a young company or business  that is just beginning to develop. Startups are usually small and initially financed and operated by a handful of founders or one individual. These companies offer a product or service that is not currently being offered elsewhere in the market, or that the founders believe is being offered in an inferior manner.

In the early stages, startup companies' expenses tend to exceed their revenues as they work on developing, testing and marketing their idea. As such, they often require financing. Startups may be funded by traditional small business loans from banks or credit unions, by government-sponsored Small Business Administration loans from local banks, or by grants from nonprofit organizations and State governments.

When startups are compared side-by-side with big businesses, some strength/advantages are easily noticeable. They include, but are not limited to:

1. Agility.
Startups are young and formless for the first couple of years. You may have a solid business plan and an operations strategy in place, but there’s nothing confining you to those structures. Big corporations are forced to keep their models the same to keep the board of directors, the investors and their customer base happy. As a startup, you can do whatever you want.

This agility comes in handy when something disrupts the industry, such as a new technological development or an even newer competitor. Big businesses must absorb the blow and respond slowly as their massive gears begin to turn. As a startup, you can turn on a dime and rebuild everything from the ground up, if necessary.

2. Team chemistry.
Some major corporations have casual atmospheres, but for the most part, any big business you walk into will be filled with walls, offices and cubicles. The people from accounting don’t know the people from marketing, and the CEO probably doesn’t know anyone below him/her.

In a startup, you have no choice but to bond with the other members of your team. You may have three people or three dozen, but you’ll be working so closely together on work that matters to all of you that you’ll have a natural chemistry in your working relationships.

3. Less bureaucracy.
In large corporations, everything must be formalized. Every minute process is well-documented, and there are rules surrounding everything. Usually, when a decision is to be made, it must undergo rigorous evaluation by multiple people in multiple department. In essence, the gears of bureaucracy slow everything to a crawl and formalize processes that never needed formalizing in the first place.

4. Competitive pricing.
Pricing is a difficult issue to speak about broadly. Each industry must consider different factors when it comes to pricing. For example, in food product development, larger companies have a pricing advantage because they have access to more equipment, they can do larger runs and save money on items per piece. However, for most industries, startups have the advantage when it comes to pricing.

Startups have less overhead. Because fewer people are using fewer resources to develop products and services, they can be priced more aggressively than those same products and services churned out by a multi-level, massive corporation. You’ll also have more flexibility in pricing, open to negotiation, so you’ll be able to secure more clients.

So instead of waiting for white collar jobs (that actually do not exist any more these days), youths are encouraged to get out there and start something. With perseverance, tenacity, passion, clear-cut vision and above all prayers, you will become the next Big thing that everyone is talking about.

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