Start-ups, what’s up with them?
Nowadays everybody knows what a start-up is. Many know that their survival rate is quite low. However, not that many know why it happens and how important start-ups really are. So, do you know?
A couple of reasons why start-ups are important!
- Start-ups create most of new jobs. Old companies usually tend to hire people on the rise and fire them on downfall, while start-ups, as new and growing business, simply create job places.
- Start-ups are innovation driven businesses; they are the ones that bring fresh ideas and products. While old-timers observe innovations from a safe distance, start-ups walk right into them to gain competitive advantage.
- Start-ups are a goldmine for investors as ROI can be astonishing. Microsoft or Facebook anyone? According to www.takecommand.org “States that provide resources to innovative startups have demonstrated that they can generate up to $23 in state income for every $1 invested”. You can find their full article here.
Thus, not only start-ups greatly influence already stagnant economy of the world by creating jobs, but also they bring innovation and progress.
- According to statisticbrain.com Around 55% of start-ups in USA will go out of business in their 5th year. After 10 years, less than 30% will be still functional.
- Theguardian.com states that more than 50% of UK’s small business fail in their first years.
- And if we look around for opinions on the net, we’ll see even bigger numbers – 3 out of 4 go down, 90% or even 95% of failures, etc.
Truth is, even if we discard unbiased statements, official statistics is scary enough.
Why do they fail?
According to statisticbrain.com article, start-ups fail due to:
- Incompetence - 45%.
- Unbalanced experience or lack of managerial experience - 30%.
- Lack of experiences in line of goods or services – 11%.
- Neglect, fraud, disaster – 1%.
Various specialists name various reasons. However eventually you will see them to fall under one of these - lack of business based knowledge, skills and experience. In other word, incompetence.
What can we do?
Simply reading clever books will not help. Theoretical knowledge is not always a solution. Certain skills come only from practice. However, real business is not always the best place to experiment.
Now practicing in a virtual environment is a different story. Mistakes in a business simulator will not cost you that much, if they will cost you anything at all. Experience and knowledge you will gain might be invaluable. As it will increase your chance in successfully developing your own start-up.
The name of this simulator is Simformer Business Simulation (SBS). How is it different from other strategic online business games? It is based on a virtual economy, where real people make their decisions and influence the economy itself. Almost perfect business environment simulation. By playing this strategic business simulator you and your friends will learn how business works, how business day to day activities look like, you will be able to experiment and find out what works and what does not.
Share and tell your friends, who have or are planning to have a start-up, about SBS. They will thank you later.
In addition, our team will soon launch a kick-starter project for start-up development simulation. In general, it will be training grounds for start-uppers.
Stay tuned for more news.