Our world is technology-obsessed, and it is only natural that with each passing day, technology is becoming more prevalent in society. This makes it a fantastic time for tech startups to make an impact. In this short piece, we will be considering what an IT startup is and specific wellness markets that are worth considering.

What is a Startup?

A ‘startup’ refers to a company in the beginning stages of operations. They are generally founded by one (or more) entrepreneurs who wish to develop a single service or product for which they think there is a demand. Because these companies are in the initial stages, they typically do not have a fully developed business model and, more importantly, do not have enough capital to move onto the next business step. The majority of these companies are funded in the beginning by their founders.

A lot of startups also turn to family, friends and venture capitalists for further funding. A venture capitalist is known to be a person who makes money by investing in high-risk projects. They specialise in startup funding. It is often wise for startups to use seed capital to develop their business plans and invest in research. A comprehensive business plan is crucial as it outlines the mission statement of the company as well as its goals, marketing strategies and management. Market research is also valuable as it can display the demand for the product or service you wish to provide. The first years are crucial for startups, and during this time, concentration should be on raising capital and developing a business model.

Key Considerations

There are numerous factors to consider prior to building your startup:

• Legal Structure: You must figure out the best legal structure for your startup. For example, a sole proprietorship is sensible for a founder who is also a central employee. Partnerships, on the other hand, are valid for businesses with several people who have joint ownership.
• Funding: As mentioned, the funding for startups often comes from family, friends or venture capitalists. In more recent times, ‘crowdfunding’ has become a popular approach to raise the money needed. This allows the entrepreneur to set up an online page where people who believe in business can donate money to help your cause. Another method is to use credit (a perfect credit history would be ideal and allow the startup to use credit as funding). However, this option does carry the most risk. A further option is to choose a small business loan to help with the growth of the startup. Banks have several options for small businesses, but note that a detailed business plan is often needed to obtain one.
• Location: Finally, ensure you consider where to base your startup. You must choose whether to conduct business online, in an office or even a store. This will depend on what product or service you offer, e.g. if you’re selling perfume, you may wish to have a physical store so people can try out the perfume before purchase.

Wellness Startups

Wellness refers to healthy living characterised by physical, social, mental, and spiritual well-being. The wellness sphere has exploded in recent years and is a great market to consider delving into. It is also thought that Covid-19 has positively impacted the expansion of health and wellness, especially online. Having products and services that are easily accessible to help our well-being became essential for us during such a torrid time. It looks as though this rise in popularity is also set to continue in years to come.

Entering the tech wellness sphere could be a fantastic way to take advantage of this trend and reap the rewards. So let’s highlight a couple of ideas for wellness startups:

Start a Wellness App

One interesting idea could be to build a wellness app. The number of people installing health and fitness apps increased 27% in 2020 and is thought to stay above 84 million active users through 2022. A wellness app could refer to a range of ideas, from meditation apps to mental health apps. In fact, due to Covid-19, health and wellness apps increased in popularity with a 25% increase in downloads. This figure increases even more drastically for mental health apps specifically, with a 200% increase in downloads.

Become a Virtual Personal Trainer

In the UK, there are over 10 million gym-goers. However, with the global pandemic, people were forced inside and could no longer attend sessions at the gym due to government guidelines. Throughout this virus, people have been eager to find new ways to stay fit within the comfort of their homes. 80% of fitness consumers live-streamed workouts compared with just 7% in 2019. It is thought that Covid has transformed the fitness industry and that online workouts will continue to be popular after the end of this pandemic. Of course, you do not necessarily have to be an expert in this yourself, as long as you work with people who are knowledgeable in this field.

CBD Startups

In recent years, CBD has been storming the wellness industry. CBD is a compound that derives from the Cannabis sativa plant. It is typically confused with tetrahydrocannabinol (THC) which also originates from the same plant. Research is ongoing into CBD, but it appears it may have a myriad of potential health benefits, including aiding in pain and joint relief, assisting mental health, and being a beneficial natural supplement. The CBD market is currently worth £300 million and is expected to reach almost £1 billion by 2025. It is especially successful online, and there is a range of products to consider, such as CBD gummies, tinctures and topical balms. This is definitely a market to look into due to the mass popularity currently surrounding it.