Startup Term
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Hello everyone, now I am going to discuss with you one interesting issue from the business world. However, lets start with the film “The Social Network” that we had to watch. The producers of the film showed the real story of creation of popular social network “Facebook”. The “Facebook” is one of the best start-ups in the world, and its founder Mark Zuckerberg is famous startuper. The term “startup” is widespread in the modern world, but unfortunately not everyone understands its meaning completely. So, the theme of my presentation is “What is the startup?”The startup is a company which has existed less than 3 years and has received income of less than $ 1 million. Also, the startup is a new company, which usually operates in the Internet sphere and which has the potential for rapid growth because it offers new products and services that do not have analogues. For instance, Google, Twitter, Microsoft, YouTube are bright examples of successful start-ups.And now let’s turn to history. The term “startup” first appeared in the US in 1939. In those days, students at Stanford University, David Packard and William Hewlett, creating a small project, called it a startup. Over time, this startup has grown into such a large and successful company like Hewlett-Packard. I am sure you know this company, it has a logo “hp” and sells computers, printers, tablets and so on.
The development of a startup has 5 stages. In order to describe them in detail, lets imagine the situation. Okay, we are a group of young, smart and highly motivated girls and we want to create a start-up and become rich. So, what do we need? Firstly, we need an idea (ideally – a brilliant idea, and not just one!) Secondly, we need people (brilliant people with brilliant ideas!) And of course, we need money. These are three main components. Suppose that our new product will be in demand, and we have found investors. This is the first stage, it is called “Pre-Seed”. Unfortunately a lot of young people do not find sources of financing and startup fails at this stage.The second stage is the Startup Stage. We release a product to the market and try to survive in conditions of perfect competition. The third stage is called Growth Stage. We have survived in a competitive environment, and our products are actively sold. Its time to make a profit to investors.Next step is Expansion Stage. Our company is famous, we release popular product and we have a good profit. And now we begin to plan new projects in order to be successful on other markets.And the last stage is Exit Stage. When a company reaches its peak, investors who have invested money in the project, give up its share in the business and sell it to larger players. This step brings them good profit. However, some investors prefer to maintain its share.