What is a startup? and why is there a lot of startup failure?…
“A Startup is a temporary organization that search of a scalable, repeatable, profitable business model to validate its existence.”
For a long time I’ve considered a startup to be a business, but I’ve seen many founders startup go on for a fey years till they eventually burn out and if the founder is a Nigerian, he goes back to his village. — of course not
He must have made enough connections and skills to be valuable to other organizations.
Upon reflection on the definition,
A startup was only in search of…..
As much as a startup founder might like to see himself as a CEO rather than as a businessman — representative
Unless you run a charity, there is nothing like free money
The series A,B,C,D,E,F rounds of funding will eventually demand a report of profitability from you and if you don’t deliver you just might see yourself filing for bankruptcy protection.
Proper attention must be paid to growth strategy to avoid startup failure.
Tech startups are not profitable in the first few years to allow for growth
The definition of tech startup and their impressive valuations is the bet that they will become billion dollar companies in no time — High risk higher reward
To achieve this, early on, the startup has to sacrifice growth for profitability