Startups are innovative companies that have the ability to change the entire industry and create a significant impact. They often begin with a small amount of capital and quickly become profitable and the most successful ones eventually becoming unicornsbusinesses valued at more than $1 billion.

While many startups are tech-related but they can be found in virtually every industry. Some, such as Slack focus on the communication of employees and others, such as Instacart are grocery delivery services. No matter what their business model, successful startups usually offer a cutting-edge solution to a problem customers don’t even realize they have.

The process of starting up requires many hours of work and risk, however the rewards can be immense. There are a variety of resources available for those who want to start their own startup. Certain startups receive seed funding from accelerator programs, such as Y Combinator, while others have success with funding and advice from VCs and angel investors. More than 90 percent of startups fail. It’s essential to act to minimize your chances of being one of those.

Some of the most effective business ideas for newbies include services, consumer products, and eCommerce. A coffee shop, for instance is a low-cost business that offers a variety of products that can generate significant revenue each month. A company that assists people to find and book living spaces is a different low-cost business option that can be profitable in the long run.