What characterizes a startup?

A startup is characterized primarily by its focus on searching for a repeatable and scalable business model. This pursuit is critical because startups often operate in uncertain environments, where finding a viable business model can be the difference between success and failure. Unlike established companies that have a known revenue stream and validated market presence, startups are in the exploratory phase, experimenting with various approaches to attract customers and generate revenue.

The concept of being "repeatable" highlights the need for a model that can consistently attract customers and generate sales. "Scalable" indicates that the business has the potential to grow rapidly without an equivalent increase in costs, an essential characteristic for startups aiming for significant market impact.

By understanding this focus, one can appreciate that the startup's journey involves identifying customer needs, developing a minimum viable product, and iterating based on feedback to refine their business model. Establishing a repeatable and scalable framework is vital for future growth and investment attraction.

In contrast, a business with a fixed revenue model suggests stability and predictability, which is generally not the case for startups. Similarly, an established company has already validated its market and is not in the exploratory phase like startups. Finally, while startups can involve high-risk investments, this characteristic alone does not define them; many