Democracy not only prevails in the government of a country but it can be adapted in our daily practices too. A housewife ensures that freedom of speech exists at home; at schools/colleges meetings are held to collect ideas from parents about an institution. Similarly at workplace we have the right to know what is happening in an organizational chart by giving our suggestions to create an ideal workplace. Thus democratization prevails in startups where companies can take a detour from the predictable manner of how startups are formed.
Startups are different in their formation, as they are not established financially but their base is strong with ideas and dreams. Conventional funding start with angel investors and VC’s. Funding can also be through crowd financing or may be from internal sources like ‘Friends and Family’. Startups always have to find out a solution to place themselves in the market and carve a niche of their own. Business advisors often counsel the entrepreneurs to keep aside a certain amount for marketing and look upto companies such as Apple.
Ken Evnell, Partner, Waterstone Management Group, says that with the presence of social media one does not have to spend much on marketing .This is because information is fluid in nature and everybody has access to it, being in a software world. Communication is given key importance and instead of spending big bucks on marketing, entrepreneurs can utilize the social media to reduce their cost on marketing.
For example crowdfunding receives great attention from social media proving to be a weapon for awareness resulting in quick flow of information. In the past, a marketing plan had to be laid down and each company would come with different outcomes with their planning strategy, but today it is different and a simpler task to perform.