The world is changing. In all areas of our lives, all directions are being followed. Today I wanted to talk about the world of work, about what will be tomorrow within the new economy, which will have to re-become again, an operation that was born only a few years ago.
A start-up is a company or project initiated by an entrepreneur to seek a possible business beyond a new idea.
In the last few years, any new business has been classified as a “start-up”, including self-employment and businesses that never intend to become registered. So now start-ups refer to the new companies that want to grow vast beyond the solo founder. Start-ups face high uncertainty and have high rates of failure, but a minority of them do go on to be successful and influential in the World.
Start-ups typically begin by a founder (solo founder) or co-founders who have a way to solve a problem.
The founder of a start-up will begin market validation by problem interview, solution interview, and building a minimum viable product, to develop and validate their business models.
The start-up process can take a long time (by some estimates, three years or longer), and hence sustaining effort is required. Continuing effort over the long term is especially challenging because of the high failure rates and uncertain outcomes.
Now, there is a start-up either to the production of a movie or a new record, because this is the model of the economy is going from few years.
The failure rate of start-up companies is very high.
An article I read in Financial Times one year ago, when I was thinking of something similar on an idea I had at my previous business, connect with the production of a line of new biscuits or to produce “fresh pasta” and distribute around the UK, estimated that 80% of start-ups ultimately fail.
The top five factors in failure were lack of consumer interest in the product or service; funding or cash problems, personnel or staffing problems, competition from rival companies, and problems with the pricing of the product or service.
The majority of the cases is based in funding problems, because sometimes starts that who funding the companies don’t believe anymore at the project, or maybe they have a new idea from someone else that believes more. So they move to interest and investments.
Sometimes these companies are purchased by other companies if they are deemed to be viable, but often they leave employees with very little recourse to recoup lost income for worked time, and they close down forever.
In any case, the start-ups are the future.
A start-up is a new company that has the elements to become one of the big companies that, by changing the way we do things or inventing new services, will give us well-being, wealth, jobs and a role in the World.
But not only the certainty and you must always be ready for the worst and never cradle or trust the future of the Company where you work.
Not because the people who manage the Company are dishonest or unprepared, but because it is the “life and the market” of the Companies in this World that we live in.
How many companies are in danger of losing everything with this crisis we are living now?
So many, to the point that any list probably risks leaving someone out.
With Europe and the World practically stopped for the Coronavirus, the millions of existing start-ups are likely to close, not at the end of the year but in two or three months.
It is not an exaggerated forecast. Unfortunately, it’s the consequence of the facts and events.
They are young companies, usually at a loss because they invest everything in design and marketing to grow, and they cannot resist if the World stands still.
They are like new-born seedlings when freezing comes.
Covid-19 is the frost that no one expected.
This problem is currently in the foreground at the tables of the various national governments.
Some countries have already invested substantially to try to keep them on their feet, some with “lost funds”, such as France, Italy and the USA( they just did two days ago, after Trump denied till the end the dangerous of the Coronavirus). While in Germany and England, they think about the possibility of lending money and long-term interest-free payments to be converted into company shares; everywhere we talk about the suspension of rents and bills and new terms for declaring bankruptcy in the event of insolvency.
But not all countries can have those resources and even these eight giants of the “World Economy” have difficulty to supporting all the companies, and many will still have to close because ‘even ordinary investors are anxious about the different businesses that allowed them to invest in start-ups.
Of course, by my nature, I am confident that everyone at the charge of any single Nation, will understand, worldwide that no measures are needed for the future, real help is needed now. Because without support, now “future” will not be comfortable.
They serve many categories in Europe, nobody denies it. There are so many legitimate interests to protect. And real needs.
In Italy, there is talk of a reduction in wages for footballers and a decrease in pensions (!)
But start-ups are not companies “to play”, or “for a moment”.
Start-ups are the world industrial policy of the new millennium and the future economy when the Coronavirus will be behind.
So, we need to be confident, positive but also be aware and don’t sit down think just everything will sort it out or “my bosses are serious people”, doesn’t depends from them or from us.
Just be aware and always create a plan B. Think every alternative scenario, either a bad one and be open for everything.
The World we know now could be very different after the Summer.
As people, we show so many times how clever we are, and we could sort it out.
I’m a dreamer and illusionary that love could make the difference, if people are serious about love, we will come out stronger and with new energy from this. But nothing will be anymore the same we know till three weeks ago.