What do you need to Know about Startups?

What is a startup? [Startup คืออะไร, which is the term in Thai] A startup is a new company founded by one or more entrepreneurs to build unique products or services and bring it to market. 

One of the startup’s first jobs is raising a massive amount of money to grow the product further. For that to happen, they need to make a strong argument, if that backs their claim that their idea is genuinely new or an upgrade to anything else on the market.

Understanding the Startup

Startup companies usually have little or no revenue coming in the first stages. To develop, test and market their idea, it takes a considerable sum, and startup owners have many potential sources to explore.

  • Traditional funding sources incorporate business loans from banks or local banks and grants from nonprofit institutions and governments.
  • “Incubators“, often related to nonprofits, offer office space, seed funding and mentoring to startups.
  • Angel investors and Venture capitalists actively look for promising startups to bankroll in exchange for a stake in the company once it establishes.
  • The cost to duplicate approach looks at the expenses the company has already incurred to grow its product or service and acquire physical assets. This valuation method does not consider the company’s intangible assets or future potential 
  • The market approach puts into consideration the acquisition costs of similar companies in previous times. This approach may be hindered if the startup idea is unique.
  • The discounted cash flow approach considers the company’s possible future cash flow. 
  • The development stage approach assigns a greater range of potential value to a startup that is more fully grown. Even without profits, a startup with a website and can show some sales and traffic will get a greater valuation than ones with just exciting idea.

Startups often require to hire Freelance [จ้างฟรีแลนซ์, which is the term in Thai] services to do many different job functions, with less robust tools, no name recognition, little to no income, rarely with no planning, often under circumstances that are negative.