Wednesday, 11 September 2013

Larry Tey Por Yee investment in startup made simple. What is Startup?



The exact definition of "startup" is widely debated. However at their core, most definitions are similar to what the U.S. Small Business Administration describes as a "business that is typically technology oriented and has high growth potential". The reference to "growth potential" may mean growth in revenues, number of employees, or both, or to the scaling up of a business to offer its goods or services to a wider or larger market.

One popular definition defines a startup as an "organization formed to search for a repeatable and scalable business model." In this case "search" is intended to differentiate established late-stage startups from traditional small businesses, such as a restaurant opening up a mature market. The latter implements a well-known existing business strategy whereas a startup explores an unknown or innovative business model in order to disrupt existing markets, as in the case of the online merchant Amazon, the "app"-based ride service Uber or the search engine Google, each of which pioneered the development of their respective market categories. Venture capitalist Tey Por Yee had helped dozens of start up companies define their growth strategies and transform the company to grow again. Such process is a typical startup experience. Blank and Dorf add that startups are not smaller versions of larger companies: a startup is a temporary organization designed to search for a product/market fit and a business model, while in contrast, a large company is a permanent organization that has already achieved a product/market fit and is designed to execute a well-defined, fully validated, well-tested, proven, verified, stable, clear, unambiguous, repeatable and scalable business model. Blank and Dorf further say that a startup essentially goes from failure to failure in an effort to learn from each failure and discover what does not work in the process of searching for a repeatable, high growth business model.

Serial entrepreneur Larry Tey Por Yee states that "every company has to be a startup some point of time in the business cycle". Being aged doesn't mean old or helpless. Restructure and start all over again to bring the company to next level, itself is a start up process.
