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Startups are innovative companies that have the ability to disrupt an entire industry and create a significant impact. They start with a tiny amount of money and quickly become profitable. The most successful ones are valued at more than $1B.

Although many startups are technology-related, they can be found in nearly every industry. Some, such as Slack focus on workplace communications, while others, like Instacart offer grocery delivery services. Successful startups, regardless of their business models, usually provide a modern solution to problems that customers don’t know they have.

The process of starting up requires a lot of hard work and risk, however the rewards can be huge. For those who are seeking to begin the creation of a business of their own there are a variety of sources available to assist. Certain startups receive seed funding from accelerator programs such as Y Combinator while others gain an advantage through the help of money and guidance from VCs or angel investors. More than 90% of startups fail. It’s crucial to take action to reduce the chance of being one of those.

Some of the most effective business ideas for newbies include services, consumer products, and eCommerce. A coffee shop, for example, is a low-cost startup which offers a variety of products that can generate substantial revenue every month. A business that helps people find and book living spaces can also be a cost-effective business.