Common Misconceptions We All Make About Startups

Two entrepreneurs conducting business discussion
Source: https://unsplash.com/photos/5fNmWej4tAA

“Growth Orientation” Is the Core Attribute of Startups

A startup is a newly founded business with some innovative strategy and a purpose to disrupt how things are being done today, subsequently acquiring explosive profits in a relatively short period. We all know that. However, Paul Graham, co-founder of Y-Combinator, ingeniously highlighted that a startup’s key feature is it being “a company designed to grow fast.”

An Idea in Itself Is Not Useful Without the Necessary Action

Let’s not beat around the bush here: Just having a vision or innovative idea is far from being enough to make it a successful endeavor. You need a whole lot of determination, motivation, and stubbornness to get the wheels rolling for your new business, alongside funding and a pinch of luck. However, the vision is certainly the core.

An entrepreneur looking at a vision board
Source: https://pixabay.com/photos/startup-whiteboard-room-indoors-3267505/

Profits Cannot Be Achieved Instantly — Traction Takes Time

There is no denying that financing is one of the significant tailwinds of startups, as every company needs cash flow to maintain itself over time. Naturally, a startup is not built on immediate returns but rather on investments and loans — and these need to be paid back.

Conclusion

I hope I’ve helped you make the important distinction between a startup and other types of businesses. If your dream is forming one of your own, it is definitely important for you to know that, first and foremost, you are on the right path.

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