This is a continuation of the previous blog.
Startups are projects that solve a problem through innovation and are scalable. From what we mentioned in the previous blog, I think we already know that we all want to be a Startup and not an SME.
With all this innovation and with all these things:
- What can we expect from the life of a Startup?
- And what should our expectations be as Startup? either as an investor or as an entrepreneur.
There are four things that can happen.
1.- The first is that Startup starts to grow, grow and grow, until it does something called IPO which means that the company is made public and goes public, it is what a company could aspire to the most. Google and Facebook for example are out there as a public company where any of us can get and buy shares.
2.- The second option that a Startup could have is that it grows, grows and grows and someone arrives and buys it. For example, Facebook that is in the stock-market bought WhatsApp who were a company with 50 employees and did not even own the building where they lived and bought it for 19 billion dollars.
3.- The third option of a Startup is that it goes bankrupt, so simple, and in fact it is so common for Startups to break, that they invented an event called ‘Fuck up Nights‘ so you can see how people have or they had Startups have gone bankrupt.
What I’m going with this is that a Startup like we were at the beginning, solve a problem with innovation, if the problem exists and innovation is enough to solve that problem, then your venture will start to grow exponentially until a time when you are giant like Facebook or like Google because you changed an industry forever. Think of Uber, which changed an industry forever, we see taxis differently.
4.-The other option is that you die, there are no average options for Startups, as entrepreneurs and investors have to understand the risk that this implies, if we play and hit it, we will grow a lot, but if it is not going to end all, we cannot stay in the middle as it could be done by an SME that has been in the market for years and has a healthy operation year after year and will never grow exponentially.
That’s what we can expect from the life of a Startup. So, the question is:
Can we be a Startup?
Can we invest in that Startup?
and how will your Startup grow that exponential?
Wait for the next blog. ?