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Startups are companies which have the potential to disrupt an industry and make significant changes. They often begin with a small investment and quickly grow into a profitable business, with the most successful ones eventually becoming unicorns — companies valued at more than $1 billion.

Many startups are tech-related however they can be found in all industries. Some, like Slack concentrate on communication in the workplace, while others, such as Instacart are food delivery services. The most successful startups, regardless of their business models, typically offer a new solution to problems that customers don’t know they have.

The process of starting a startup involves lots of work and risk, but the rewards can be astronomical. If you’re planning to launch the creation of a business of their own there are numerous resources available to help. Some startups receive seed funds from accelerator programs, like Y Combinator, while others get traction through money and guidance from VCs and angel investors. More than 90% of startups fail. It’s important to take steps to decrease your chance of becoming one of them.

Some of the most effective business ideas for newbies include services, consumer products, and eCommerce. For example, a coffee shop is an inexpensive startup that could offer a wide selection of goods and generate a significant amount of revenue each month. A company that assists people book and locate a living space can also be a low-cost venture.

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