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What Is A Startup Business?

A startup business is a newly emerged, fast-growing entrepreneurial venture that is designed to meet a specific marketplace need by developing a practical business model based on services, innovative products, a process, or a platform.

In recent years, the terminology, “startup” has become very popular among millennial and young individuals with a strong business mindset. Startup businesses have evolved to be more of a cultural movement with an outlook that is a complete deviation from standard or traditional companies.

The modern day startup business offices are not like the typical offices where a certain dress code is mandatory and a formal setting is to be maintained. Startup founders are often seen wearing casual clothes to meetings; office spaces can look very casual with a very youthful and vibrant atmosphere.

What Is The Difference Between a Startup Business and a Small Business?

Sometimes when you hear the word “startup” being thrown around, many begin to imagine coders, software and app developers, and the likes.

There are so many misconceptions about how this term is being used to describe businesses, that it’s often assumed it can only be applied to tech companies. However, the reality is that a “startup business” does not necessarily mean that it is strictly technology-focused. Startup businesses and small businesses share a number of similarities, but there are a few differences that distinguish both ventures.

Growth

One major difference between startup businesses and traditional small businesses is the way growth is being conceptualized. Startup businesses are designed to grow really fast, that is, they typically tend to rely on technology in order to reach a larger market.

A specific instance of startups is how apps can go from having just a few users upon launch, to millions of users in a matter of a couple months; this is the typical format of many startups.

On the other hand, traditional small businesses are designed to scale up at a slower pace. They usually do not have access to financial support to grow fast and generate revenue like startup businesses, so the growth is more incremental.

Funding

The ways that startup businesses and small businesses seek funding can be quite different. While startup businesses often rely on direct funding from venture capitalists or angel investors, small businesses often have to rely on loans and grants. Generally, startup businesses tend to get more help from their investors as they are actively involved in the operations. However, small businesses will usually report to their banks with respect to their loans or grants.

How to Start a Business

There are a number of obvious reasons why more people are quitting their jobs and starting businesses. Firstly, many people do not get the satisfaction they expect from their jobs. Secondly, there is a shortage of jobs in the labour market – which drives many people to seek out opportunities by establishing their own businesses. Another reason is the fact that many individuals have ideas that provide solution to a specific market need.

While many have great business aspirations, they often do not have a clear picture of what starting and growing a business entails. Many will fail as a result of a lack of preparation or market research. Becoming an entrepreneur is not as easy as many want it to be. It requires hard work, time, and a lot of effort.

Here are a few tips for startups and guidelines that will help you to start your business and make it successful.

Brainstorming

This is one of the most important phases of starting a business. Every business opportunity starts with an idea. These ideas often come in the form of solutions to a problem or they must be able to fill a gap. Whatever your ideas may be, there are many ways by which you can turn them into a viable business.

The brainstorming phase should include extensive research into the field or industry you plan to set up your business. You must identify companies that are already providing a similar solution and think up ways you can offer your services differently at a better rate.

Develop a Business Plan

This stage requires you to go into more details about your business idea. This is the stage where your ideas begin to materialize. A business plan will show in clear terms whether your business will be profitable or not. Also, you need to answer questions like:

1. Who are your customers?
2. Target market and size?
3. How will your business be financed? Will you need to apply for a loan or invest your own money?

A well-written business plan will help you answer these questions.

Business Structure
It is important to identify what type of business structure you want to run. The type of entity that your business is will determine a lot of things like how it is being taxed and its liabilities. If you want to run your business alone, then you must consider a sole proprietorship. Alternatively, a partnership is where there are two or more people involved. There are also other options like a corporation and Limited Liability Corporation.

Register Your Business
Before your business can run as a legal structure, you need to register it at the appropriate government agency. This process will involve registering your business name as well as providing other information about your business.

Determine the Type of Technology to Be Deployed
Every business today is being run with a set of tech tools to improve their efficiency. It is important for you to determine what type of technology will be suitable for your kind of business. Technology such as mobile apps, social media, and enterprise software are tools that can help your business become successful.

Insurance
Many businesses overlook insurance as something that they can get away with until they need it. There are various types of insurance coverage. But it is important to choose the type that best suits your business.

Build a Team
Unless you plan to run a ‘one man’ business, you are going to be faced with the task of hiring the best team to get your business running. The process of hiring a team must be tailored to the gaps that need to be filled in operations. Proper division of tasks and assigning roles to your team can play a major role in whether your business survives or not.

Branding and Advertising
A marketing plan should be put together in order to maximize your advertising and marketing efforts. A proper media campaign should be carried out to spread word about your business along with the products or services that it are being offered.

Four Key Points that a Startup Needs to Succeed:

1. Customers – You need to identify a need that has not been met by the market. Determine whether you can provide solutions and if the market is right for you.
2. Product – Your products or services must directly help your customer solve a problem or meet a need or desire. If it’s a product, make it very simple and adaptable to use.
3. Timing – Every business opportunity has a limited window or period during which it will be viable. Entering a market too early or too late usually comes with great risks due to market uncertainties. The best timing is often when there is already a customer base that has not had their needs satisfied.
4. Competition – Excess competition against an influx of new customers can make the market quite tough for new entrants. However, this offers many opportunities to disruptions that can take on the competition by creating new opportunities.
5. Finance – Maximizing profit with minimum risks and costs.

Related: Business Phone Solutions

North Korea has been in the news for many years for reasons that are far from positive. The country has remained in the spotlight due to the approach of the government toward international relations under Kim Jung Un’s rule.

Several issues such as the crisis between North and South Korea, the nuclear program and testing, and a gross violation of human rights and freedoms, have all been in the forefront of the country’s reputation.

There are necessities that are being enjoyed by the rest of the world, for example, public access to communication in North Korea, which are extremely monitored by the government. Another instance, as far as North Korea telecommunications is concerned, is in regards to the fact that international phone calls are illegal in North Korea. There is also a very strict regulation of any usage of technology in North Korea.

Why Are International Phone Calls Illegal In North Korea ?

The North Korean government holds the use of communication technology in the country with a very tight grip, especially to countries that are referred to as “enemies.” This was revealed in a report by Amnesty International.

North Korea has a popular mobile phone service which serves more than 3 million subscribers. But international phone calls are not permitted on this network as it is restricted to only local calls.

Only a select few citizens and foreigners are allowed access to the internet. However, some North Koreans have access to a closed-off network which can connect to only domestic websites and email services that are also closely monitored by the government.

Ordinary North Koreans are not allowed to use mobile phones to call members of their families who have defected as they risk being sent to detention camps or political prisons.

“Nothing can ever justify people being thrown in detention for trying to fulfill a basic human need – to connect with their family and friends” stated Arnold Fang, an East Asia Researcher at Amnesty International.

The restrictions by the North Korean Government on international phone calls as well as information coming from outside reveals the intimidation and oppression of the North Korean populace since Kim Jung Un became the leader in 2011.

Arnold Fang also states, “To maintain their absolute and systematic control, the North Korean authorities are striking back against people using mobile phones to contact family abroad.”

Several reports have affirmed that the North Korean government sees the absolute control of communication in the country as a weapon by which they can suppress the voices of the people. Their stance on international calls and communication technology is in a bid to obscure the realities and information about the extent of human rights violations in the country.

Most people who have fled the country often live in a constant state of fear due to not knowing the situation of their families. The inability to contact their loved ones leaves both parties in the dark about whether they are alive or dead, imprisoned or being investigated.  

How Do North Koreans Communicate With The Outside World?

Many North Koreans have relied on the booming private economy to gain access to smuggled clothing, food, and other goods from China. Along with this trend includes the smuggling of mobile phones and SIM cards. This practice is however not without great risks.

In a 2016 report by the New York Times, it was revealed that North Koreans have had to rely on smuggled-in mobile phones from China in order to connect to the rest of the world. People who live near the border with China are at an advantage as they can easily take advantage of some of China’s mobile networks to make international phone calls. For people in other areas, however, the ability to communicate with the outside world is much less easily done.

Government Crackdown on Illegal China Phones

Making calls at the border has become increasingly difficult to take advantage of as Kim Jung Un ordered that there be more measures put in place to prevent the exchange of information between North Korea and the outside world. This major government move has also cut down the number of North Koreans defecting to South Korea from 2,914 in 2009 to about 1,276 last year (Source: New York Times).

The North Korean government strengthened the crackdown on mobile phones that are being smuggled in from China with measures such as deploying surveillance devices and more soldiers along the border. High tech devices that jam communication signals have been deployed and used to trace calls back to those who used the banned mobile phones. The level of risk involved is massive, and North Korea has no issue going to the most drastic measures possible to halt the ability of their nation to communicate with those beyond their country’s borders.

Arrests and Incarceration

There is always a high price to pay whenever someone gets caught making illegal international phone calls in North Korea using smuggled Chinese mobile phones. Those who get caught are often sent to reform facilities and prison camps. In some cases, they are made to pay a certain fee as a bribe, if they have connections to influential people. According to several interviews by amnesty international, it appears that bribery is the motive behind many arrests.

Being sent to a reform facility is usually seen as a better scenario as this means a person would spend only about a year or two. Many people have been released with the assistance of bribing. Political prison camps are seen as much worse cases because they carry a longer, harsher sentence.

For those willing to take the risk, creativity and ingenuity are used. Many North Koreans who have a need to make international phone calls often come up with methods to avoid detection. When making international phone calls, they make use of pseudonyms and kept their conversations very short. Sometimes they climb up remote mountains to prevent their calls from being jammed or from being spotted while making illegal international phone calls.

The High Price of Communication

The imminent desperation and need for communication with the outside world has given rise to middlemen who offer the service to those who do not own a Chinese mobile phone. These middlemen get paid to set up phone calls so that the communication can be executed. This style of broker system is also used by defectors to send money to their families in North Korea.

Generally, the cost for this service can be quite high. The middlemen can take up to 30% of every USD1000 cash transfer as commission. However, the downside is that there are no guarantees that the money will reach the recipients. This is due to the fact that security agents are always on a mission to intercept money transfers, whenever possible.

There are also cases where family members send Chinese mobile phones, SIM cards, and money by bribing border patrol agents. With an increasingly tightened border, the bribes also tend to increase in value, reaching as high as USD500 per instance.

Despite the difficulties and dangers involved, communication comes at a high price for North Koreans with the ability and need to gain access to it.