VASCONCELOS, Giliard Gonçalves [1] MALAGOLLI, Guilherme Augusto [2]
VASCONCELOS, Giliard Gonçalves; MALAGOLLI, Guilherme Augusto. STARTUP INNOVATION: Turning ideas into successful businesses. Multidisciplinary Core scientific journal of knowledge. 01 year. Vol. 09. pp 739-753. October/November 2016. ISSN:2448-0959
SUMMARY
Over the past few years, the emergence of a specific type of company driven mainly by the internet, with the advancement of technology and mainly with the recovery of the information. These companies became known as Startups and are based on innovation as a way to take advantage of a market opportunity. The objective of this work is to analyze the new entrepreneurs have used, an alternative way to traditional, entrepreneurship Startup, lean, innovative and differentiated. So with this spread, the brief contents described in this work, since it will not be approached the bottom the whole area mentioned and even other correlated not less important but absent in this text. It follows a lean line of content but with a proposal to share that knowledge, in order to provide an understanding of the creation of Startups and show how this shape increases the chances of success of the company by incorporating concepts and methods in the creation of innovative business.
Keywords: Entrepreneurship. Scalability. Startup. Innovation.
1. INTRODUCTION
Many entrepreneurs have a great idea and expect to make millions with her, but often do not know to turn your idea into a successful business. A real race starts in the direction of entrepreneurship, but since this is a race the ideal is to use the fastest, along comes the startup movement, hence the importance of this concept for those who want to follow this path. Is a path that is often travelled much faster than the old model, in that they follow an entire planning, involving a huge and possibly doing a series of meetings, and then only after put his hand in the cookie jar. In entrepreneurship startup initially avoided this bureaucracy of traditional business plan, the agility in the process. But make no mistake, undertake this way doesn't mean ignore this, because in the course of this journey the other processes and integrate, firming as a company business stabilized. The fact is, an idea that appeared to be absurd or even different happens to be innovative, so one more successful business is born. However to understand as this transformation of ideas into successful businesses is not so simple. In order to help you understand and apply the science that is entrepreneurship, it is proposed that article regarding entrepreneurship startup.
The intention is to abort the main themes and share this knowledge to those who are interested in the subject by little know and also with this little work, adding even more to those who already know about the subject. Had as justification to motivate and inspire people to use this new way to undertake, because through the perception of the current scenario, where business ideas arise increasingly, noted the importance of the contribution of this work to the many who want to undertake but see several obstacles that could be best worked with startup to undertake. Contextualize and exemplify primary bases in education of something new, so identified that the best methodology to be used would be through a literature review, in which there will be a documentary analysis, guidelines and processes of this new methodology to undertake and later a case study to illustrate the theory.
2. LITERATURE REVIEW ON STARTUPS
The term startup is still unknown by the vast majority, so first of all it is important to understand your definition. Therefore, to understand what a Startup is essential to analyze your definition according to some authors renowned in the subject.
According to Ries (2012), A startup is a human institution designed to create a new product or service, under conditions of extreme uncertainty. ”
According to Ries (2012), a startup need not necessarily be a traditional company. In this case you can understand it's included social causes, i.e. non-profit. It can be made up of people in favor of a well in common, that about extreme uncertainty.
According to Torres (2012),
"Startup is an experiment, you should try to find the solution to the problem of their customers and to ensure that these customers will you generate the enough financial return for you to continue offering this solution. When you feel you should no longer experience, or that should decrease the pace of their experiences, you've probably found a monthly return inside than you expected and you will be making the transition from startup to a business "(Torres, 2012 , p. 15)
For Torres (2012), would be a stage, more specifically the initial period where after that period happens to transition and the business is consolidated as a stable company.
According to Graham (2012),
"A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Also it is not necessary for a startup work in technology, or take risk financing, or have some sort of "escape." The only essential thing is the growth. Everything else that we associate with startups is growth "(Graham, 2012, p. 15)
Graham (2012) sets the direction and the main feature of a startup is your growth, and that everything else is a consequence.
The definition of Blank (2012),
"A startup is a temporary organization designed to get responses that promote the achievement of a recurring and scalable business model" (Blank, 2012, p. xxix).
Blank (2012) explains that startup is a temporary company in search of a model of growth and then back to your original state looking for growth again.
T (2006) States that,
"It's a company in the embryonic stage, generally in the process of implementation and organization of its operations. You may not have even started the marketing of its products or services, but is already running, or, at least, in final process of installation "(TABORDA, 2006).
According to T (2006), a startup is an organization in the early stages, and that is already in operation, even without having started a marketing. Different viewpoints to a new way to undertake, but the same essence, the search for a profitable model, lean and with growth potential. Even being something new the term came to prominence and spread especially since the internet began to popularize several entrepreneurs have emerged with business startups. From the internet, it was noticed that it was possible with almost no money to open a business, reach a huge audience with little effort, with a great possibility of growth, thus having a business with high scalability.
3. THE PROCESS OF CREATING A STARTUP
When there is an opportunity and if you have a good idea, have accuracy is required, because enterprises are created all the time. Many when you open a business ever dare to say it has a startup, however if is not applied any of the concepts and practices of this new way to undertake, the company is not a startup. It can be concluded also that neither the same needs to be a company as was analyzed in the definition of Ries can be a group or an entity from the moment that innovate to apply some of these concepts may have a startup. When speaking of companies note that several of them are born and die every year, it is noticeable that succeeds the one who won't give up, even though it has failed to open a business that person's chances to succeed with another fall to zero obviously if she quit. It's a goal, if you invest time and money in a product, but he might not bring the expected result, the question is to what extent it is worth insisting on the same focus is a question to reflect. The change is often not easy, but it is necessary to understand that the product that was imagined and it didn't work it's not a total loss. You can learn from it and even work out a strategy in the development of its customers.
According to Blank (2012),
"The development of customers, the strategy of demand agile and frequent failures Digest reviews and new joints. Articulation is a major change in one or more of the nine working assumptions of the business model. (For example, a change in the billing system, of "freemium"-in that the basic version of a product is free, but extra features, non-signature, or a replacement of the customer segment, from boys to middle-aged women). Or it could be something more complex, such as completely change the target audience. "(Blank, 2012, p. 31).
According to the explanation of Blank (2012), pivot (or articulate as is handled) would perform a maneuver, a change of direction within the framework of business model, then, focuses efforts on another focus, but can also be, something even more complex. But before taking a serious decision like this, other decisions were taken to get to this stage. It all starts with a point of view, often accompanied by a euphoric moment, others just have questions, but the fact is that it all starts at the moment you have a different perception of something and if you see an opportunity, a potential business.
3.1. Perception of opportunities
Only see opportunities is not enough, it is necessary to know how it works, and that's a job for entrepreneurs. Entrepreneurs are versatile, creative, innovative and don't get stuck to traditional thoughts, they have a great potential to see new opportunities and transform ideas into products. The means to undertake vary greatly from person to person, but surely all aims to achieve success in the fastest with the least cost.
De Silva (2008) define entrepreneurship as follows,
"Entrepreneurship is the involvement of people and processes that together lead to the transformation of ideas into opportunities. And the perfect implementation of these opportunities, leads to the creation of a successful business. "(De Silva 2008, p. 22).
It is possible to notice that this definition entrepreneurship is the involvement of people and processes in order to transform ideas into opportunities,
According to milk (2000),
"Entrepreneurship is to create value for people and organizations working together to implement an idea through the application of creativity, ability to turn and the desire to take what we commonly call" (milk, 2000, p)
For milk (2000) entrepreneurship is creating value by implementing an idea, assuming risks. With these definitions it can be concluded that to undertake is to see ideas of opportunities where others do not see, putting into practice concepts with the proper skills of an entrepreneur, an example would be to transform an idea into a scalable business.
3.2. Scalability
Scalability would be the ability to grow on a large scale, in a short period of time without requiring a major investment in this expansion, with a proportion spent less than the growth, whose which will bring a much more profitable return. The internet is a perfect tool to achieve this result, so that kind of deal is often called digital entrepreneurship. But entrepreneurship startup does not depend entirely on the internet or digital means, in the case of physical companies have franchises, in that there are also many startups. But before you open multiple units, it is necessary to open the first, so when a business is beginning, in an initial period before it grow or even start generating a substantial financial return, probably a limitation with spending there is. When opening a company comes the time that is necessary to achieve a low cost and with existing financial limitation is when many use incubators. The following is a quote from SEBRAE (Support Service Micro-small enterprises), about incubators.
SEBRAE (2016) States that,
"Business incubators are institutions that assist micro and small enterprises or springs in operation, which have as main characteristic the offer of products and services on the market with significant degree of innovation. They offer technical, managerial support and additional training to entrepreneurs and facilitate the process of innovation and access to new technologies in small businesses. "(SEBRAE, 2016)
According to SEBRAE (2016) incubators are institutions that assist with companies that have already characterized by offering innovative products and services. Now let's see the definition according to the incubators ANPROTEC (National Association of entities promoting Advanced Technology Ventures)
According to ANPROTEC (2016),
"The business incubator aims to support entrepreneurs so that they can develop innovative ideas and turn them into successful ventures. To do so, offers infrastructure and management support, guiding entrepreneurs regarding the management of the business and your competitiveness, among other issues that are essential to the development of a company. "(ANPROTEC, 2016)
According to the (2016) incubators ANPROTEC support for entrepreneurs so that they can develop innovative ideas. From these definitions it can be said that the incubators are institutions that offer spaces, providing support and assistance to entrepreneurs grow their businesses. But make it grow without proper assistance is more of a challenge and this is a job for the startup accelerators.
According Mena (2015),
"Acceleration are companies whose primary purpose is to support and invest in the development and fast-growing startups, helping them obtain new rounds of investment or reaching your break-even point (break even), the stage at which they can pay their own accounts with business revenues. "(Mena .2015)
The initial assistance necessary for those just starting out can be found in those who as Accelerator Mena explains has the main objective to support and invest in the development of the company until it reaches an equilibrium point, all this with a rapid growth. The search for growth or scalability requirement in situations where using the internet can be obtained without need of accelerators. In a case where if you can achieve this goal, this fact can somehow help get some funding, because after achieved the scalability, the entrepreneur will certainly need to get investors to meet with quality This high demand for your business and employees to support your idea, for example incubators and accelerators.
3.3. The idea
An idea is born of something carefully studied or simple things, a moment of epiphany that comes suddenly to come across something promising. Many times the customer has a need or a problem, but he doesn't know it yet. You may need to draw, in the absence of a prototype, to show you're opening exists and that the product would fill that gap. But after creating it is necessary to improve the product as probably the initial product will be very different from the end.
Torres (2012) says:
The value proposition of your business model (value proposition is the chic name for your product or service) fits into one of these two categories:
It solves a problem and do something to a final consumer or a business (accounting, elevators, air conditioning, electricity, tablets, electric toothbrush, airplanes, email software etc.) or he satisfies a human social need fundamental (friendship, date, sex, fun, art, communication, blogs, confession, networking, games, religion etc.) (Torres, 2012, p. 79)
Basically according to Torres, explained that the idea comes up, then turns into a business opportunity and the opportunity arises to resolve a problem or meet a need. After explaining it is necessary to demonstrate to get show that the customer needs than is offered. That would be a major breakthrough in initial propagation of the use of the product, since the disclosure of client client is still a very viable form of marketing and popular. To be able to show that the product is good one can reflect on the benefit that he will deliver to the customer, expose it as friendly as possible. In this case the use of an MVP (Minimum Viable Product) is most recommended.
According to Ries using an MVP (Minimum Viable Product) is important because,
"A central component of the lean startup methodology is the build-cycle measure learning. The first step is to find out the problem that needs to be solved, and then developing a minimum viable product (MVP) to start the learning process as quickly as possible. Since the MVP is established, a startup can work in Engine Tuning. This will involve the measurement and learning and must include actionable metrics that can demonstrate cause and effect question. " (Ries, 2012)
Again it is important to note that having a prototype to show how the product would be, would help to consolidate an abstract idea into something more concrete. It is important that entrepreneurs believe in the potential of your idea, showing that your product, in a way, will help the client with a need, and more deeply, would make your life a lot easier, in such a way that the entrepreneur to get more proud of your business, because once there is satisfaction in helping the client, this satisfaction becomes personal input to inspire to improve product quality.
To get information in order to help improve your product or service, you can perform a brief analysis of the market, with she gets also a good assessment of the facts, for example the extent to which the idea meets the expectation of the market, it must be taken into account, but it is not all that matters, how you feel about it also, and if your idea meet these points, helping the client, and satisfying the entrepreneur personally, the product has more chances to be successful. But it is possible that in the case of something new, need to ask themselves a little more, this hypothesis there are no competitors because it's something new, there's just more uncertainty, therefore, to know if there's a niche market for your idea, make use of the experiences with product versions for a small audience and go improving as the feedbacks, you will have enough information to know if the business is viable or not. This subject will be discussed further with more emphasis in the analysis of the results and with the case study below, which describes a practical example.
4. CASE STUDY
With the set forth to demonstrate in a practical way the theoretical content presented, the following case study reports the application of concepts of startup form to undertake in a social project, non-profit organization, with the purpose of helping institutions of charity from a small town in the State of São Paulo in Brazil.
Social inequality reaches the brazilian population in absurd levels, you don't have to go very far to realize practically any town be it large or small sized have needy people. The quality of life in Brazil is extremely low compared to other countries. Behold arise so charities, groups of people who want to help in any way to fight how can contributing to participate in these teams of volunteers.
4.1. Current Scenario
Located within the State of São Paulo city of Américo Brasiliense in the year 2016 had a population of approximately 38,701 inhabitants according to the IBGE. As a point of reference, it can be implied that she is close to other major cities as São Carlos and Ribeirão Preto. In the city there are some philanthropic institutions, in your most composed of communities of people of different local churches. They assist people in need and their families, help even animals. The help comes from different ways for raising food samples, clothes, shoes and toys. The donations come from ordinary people, and even members of the groups. Some donate more often others not so much.
4.2. Problem
Because it is charity the intuitions depend on the solidarity of donors, so can not always help those in need. The city organized an annual event called Solidarity Rodeo Fest, in which these volunteers worked with the purpose of raising funds to these institutions, however since the year 2012 the event is no longer performed, what is a massive losses for those institutions that had a great source of contribution in terms of financial donations. Currently the biggest problem is to get specific donations, for example when you want to help a family who needs food, viable donations would be pasta, rice, milk or something, but donors are donating more toiletries, fail to raise what would be more important. As it comes to donations, nothing is lost, everything is tapped and sent to those in need. Then the volunteers have to go out in search of a solution and not always can, but in order to solve this problem of specific donations come up with an idea.
4.3. Suggested solution
As technology is increasingly present in society, the solution would be the creation of a web system. Due to the increasing use of mobile devices, this system would be fully responsive to these devices. It would be a page of ads for items they need institutions that need in order to increase the chances of you receiving these donations. The focus would not generate a large flow of visitors on the site, didn't even have a record of users, but rather to answer the problem would be to get a donation specifies, since currently no system is a fact that sometimes can be difficult to occur. Would be made an experiment with a small group of users to verify that they thought of the idea and the system itself.
With the web system matter greater security rather than simple disclosures on social networks often dubious source. However an announcement on the site could be shared on social network, but with the intention is to pass confidence and credibility to interested in helping. The proposal focuses initially on support only the community of town to reach donors frequently to see what they need in specific and influence to donate the item. Also aims at the search for new donors and carry out the disclosure of this work done by the institutions. Once the percentage of donations of these items increase for institutions, the system becomes a real success by achieving your goals.
4.4. Application of concepts in the startup project
From that idea was created an MVP, a much simpler system version, what imagined initially. It was designed with a greater emphasis on the ads than the institutions need to check whether people would be willing to spend your time using. With the release of MVP, noticed that the small group of people who used, yes they were willing to help there, but wanted to also publish your own ads of other people that needed donations, without the intermediary of institutions. People wanted to help a neighbor, a friend or even an acquaintance. So a donations page was created, and from that the site would accept also that ordinary users to create ads and not only the institutions. The people in the group that used in your vast majority, also wanted to know if the donations were delivered so a news page was created with this purpose. Thus, another concept, the pivot, was used. The site is located at the following address: http://nascerdenovo.16mb.com/, he changed the direction of your focus, which was only on the ads than the institutions needed, and opted to let ordinary people create their own ads, but this change It was a fact that helped contribute to the success of the same.
4.5. Results obtained and expected
Since the beginning of the project the proposed system was not to create a registration page to the user. The system was made with the intention to be as practical as possible, so those who want to help someone or donate something random, only reports some data such as name, email and phone contact. This idea proved to be very useful because with the MVP, it was found that users really wanted to create a record. Photographed-if more information than expected and from there took place a few small changes, but very important, because the concept of pivot proved to be relevant.
Because it is to be a just system for the city, this information would be filtered out by a team of volunteers to validate this data before climbing on the site, in order to pass greater credibility for users. Once the system has been developed with the technology to be adapted for mobile phones is expected to be popular among the people and businesses who already tend to help. Also it is expected that he can attract new donors and the charities raise items that have more difficulty.
5. ANALYSIS OF THE RESULTS
The startup model shown efficient to traditional, he works hard in the early stages of a business, but after it is consolidated as a stabilized the traditional model can get to add their comments. Because in this early stage entrepreneur is not recommended investing time in the traditional model, can come across as obstacles, but he must fast forward and conquer your market before a competitor can copy your idea and try to do the same, he has to be more agile and perform the necessary maneuvers to circumvent this risk and lose your idea to a competitor, or even if it's something that already exists, it has to do even better, before somebody else does. This requires a good methodology, in that way soon after Ries puts your point of view.
According To Ries,
The lean startup methodology recognizes the efforts of the startup as experiments that test your strategy, to see which parts are bright and which are absurd. A true experiment follows the scientific method. Starts with a hypothesis that predicts what might happen. Then test these predictions empirically. In the same way that scientific experimentation is permeated by the theory, experimentation of startup is find out develop a sustainable business around that vision. (Ries, 2011, p. 52)
Entrepreneur startup search business model for your idea, not based on what he or your team believe to be the best choice, but based on a lot of feedbacks from your market research to its clients, as was treated earlier when speaking of idea, so Ries, emphasizes he states that the business should develop around a vision, the search for a strategy to separate bright ideas of the absurd and that everything is treated as a scientific experiment of constant learning.
6. TO BE A STARTUP
A startup comes from a good idea and a lot of motivation, but this methodology involves a lot more than that. There is a certain rule to build a startup, but there are some aspects that are common in your majority, and also some guidelines that can be followed to optimize the arrival until success. What is a startup has already been seen, now will be discussed a concept deeper, the foundations of a startup. Was defined by SEBRAE with four main topics.
According to SEBRAE,
A scenario of uncertainty means that there is no way to determine if that idea and design of company will really work-or at least if they prove sustainable.
The business model is like the startup generates value — that is, how your cash work transforms. […]
Be repeatable means being able to deliver the same product again in potentially unlimited scale, without many customizations or adaptations for each client. This can be accomplished both by selling the same unit several times, or having them always available regardless of the demand. […]
Be scalable is the key of a startup: means grow increasingly without influence in the business model. Grow in revenue, but with costs growing much more slowly. This will cause the margin is increasing, racking up profits and generating more and more wealth. (SEBRAE, 2016)
Once highly regarded we conclude that to be a startup have to ask you a few questions involving these topics, issues such as: is there a scenario of uncertainty? The business model generates value? Is it repeatable? Can be scalable? Questions like these will respond with clarity what is a startup. A business that may or may not have a set market as was explained when speaking of the idea and in some cases because it is something new, maybe even a niche market for business. The value proposition of your business is in essence the product, building different versions try to get close to the version that most of his customers want. Probably the final version will be very different and the entrepreneur wouldn't think he'd remember if it wasn't for these experiments, but is this the version I was looking for. Then do be repeatable, it is critical that can be produced again without great efforts. Finally, be scalable, growth will only be possible once these other items are achieved and your startup venture will be successful both on the rise and expansion.
7. FINAL CONSIDERATIONS
Differentiated and innovative dry. The startup is still movement is something new that has much to be explored.
The proposal of this work was to present briefly the most relevant concepts and demonstrate an example where put into practice some topics. All this with the purpose of inspiring a deeper search on the topics discussed here.
It can be considered that the startup model is a new way to undertake, which reaches the goals with a better use of resources, but being a new form also comes with new techniques that must be studied carefully and also comes new challenges and new obstacles that must be worked out carefully. With the concept of scalability avoid expense and increase profits, it significantly reduces the time to expand a business proposition, so it is dry. On startup, the initial phase model is as an experiment, with the intention of growing the fastest with the least effort possible, therefore it is differentiated. As exemplified in the study case, by using the concepts of MVP, tests the product until you conquer a viable version for company and especially for the client, which increase the chances of success, so it is innovative. It is concluded that there is no shortcut to succeed as an entrepreneur, there are challenges, we can say that they are just different.
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[1] Program in progress analysis and systems development.
School of technology, FATEC Taquaritinga, Brazil.
[2] Doctor in production engineering from the Federal University of São Carlos-UFSCar. Master's degree in economics from the Universidade Estadual Paulista-UNESP. Graduated in economics from the Universidade Estadual Paulista-UNESP-Araraquara.
