These Are the Different Types of Startups

Apple, Google, and Facebook are some of the many companies nestled in Silicon Valley. It’s no surprise that the region has a booming economy, so much that if it were a country, Silicon Valley would be one of the richest countries in the world. 

However, while startups dominate the Silicon Valley landscape, many people don’t realize that these are only one type of startup. Entrepreneur founded companies can come in just about any form, giving the market a huge amount of flavor and variety.

Keep reading for a guide that will help you understand the various types of startups. 

Passion Startups

Passion startups are those that someone founds when they want to do something they enjoy for the rest of their life. 

If you quit your 9-5 and move to the Bahamas to start your own scuba diving business, this would be an example of a passion startup. A Silicon Valley equivalent would be a programmer who finds the technology they work with fascinating. 

Small Business Startups

A small business startup is one that someone starts to make a living. Common examples include salons, grocery stores, and plumbers. 

These people work as hard as Silicon Valley workers, but often only hire family members or people they know. Many work only for a living, and aren’t interested in growing their business or brand. 

Flippable Startups

In recent years, flippable startups have gained popularity. While companies of the past sought to expand their market reach and influence, some today only want to grow to a certain level.

After reaching that amount, they then sell their business to a larger, interested buyer. This provides the new company with a specialized product or service, and the startup with a nice profit. 

Startups That Grow

On the other hand, other entrepreneurs believe that their startup is destined for greatness. They see their vision as one that will benefit the world and do everything in the power to grow their business. 

As startups often struggle with funds early on, many of them have to look for potential startup investors. As long as the founders have a solid idea, other people are willing to pay for it. 

Startups That Better Society

Other people go about starting a business to make the world a better place. These social startups aren’t interested in market share or their own, personal wealth, and instead, want to make a difference. 

These types of startups are often nonprofit, although for-profit and hybrid models exist, as well. 

Understand the Many Types of Startups

If you have an idea, odds are that it may be of interest to someone. Although there are many types of startups, they all begin with someone having just that: an idea that resonates with people. Take the necessary steps to bring your idea to life, and you never know what can happen.  

Do you now have a better understanding of the different kinds of startups? If you do, don’t forget to check out some of our other articles for more business-related guides and tips.