To Start-up or not?
A Start-up is a new business that has just begun. Starting a new business is difficult and Start-ups are very vulnerable trying to compete with more established companies in the Business world.
New businesses are often started in a bedroom or home office. Mark Zuckerberg created Facebook from his Harvard dormitory. Steve Jobs started Apple in his father’s garage.
It is difficult for a new business to get funding. Some use a Crowd-funding platform like Kickstarter, where many people invest or donate a small amount of money.
50% of new businesses will fail in the first five years. 25% will fail within the first year. The number one reason is that they offer a product or service that people don’t want. Other reasons for failure include financial fraud and a lack of managerial experience.
But what about the ones who succeed? Uber started in 2009 and today has an estimated value of $62.5 billion.
Did you understand the text?
Please answer the following questions of understanding:
What is a Start-up?
a An established business
b A failed business
c A successful business
d A new business
Which of these companies is a Crowd-funding platform?
Which of these companies started in a university bedroom?
What is Crowd-funding?
a A Bank
b Paying for lots of people
c A way for a new business to raise capital (funding)
d A failed business
How much is Uber worth today?
a $62.5 billion
b $62.5 million
c $2009 million
d $50 million
How many businesses fail within 12 months?
How many start-up businesses fail within 5 years?
Which of these is NOT listed as a reason for failure?
a Financial Fraud
b The wrong product or service
c Lack of managerial experience
d Not having a garage