Startups are businesses with the potential to transform an entire industry and make a significant impact. They start with a small amount of capital and then become profitable. The most successful ones are valued at more than $1B.

While many startups are tech-related however, they can be found in almost every industry. Some, such as Slack focus on workplace communication and others, such as Instacart are grocery delivery services. Regardless of their business model, successful startups typically provide a modern solution to a problem customers may not even know they have.

The process of starting a business is full of risks and hard work however it can be rewarding. There are many resources available for those who wish to start their own business. Some startups receive seed funding from accelerator programs such as Y Combinator while others gain traction through money and guidance from VCs or angel investors. However, more than 90% of startups fail, which is why it’s crucial to take steps to reduce the chances of yours being one of them.

Some of the best business ideas for beginners include consumer products, services and eCommerce. A coffee shop, for example is a cost-effective startup that offers a variety of products and generates substantial revenue every month. A company that helps customers find and book living spaces could also be a cost-effective business.