ASSIGNMENT

MUHAMMAD TALHA
SUBMITTED BY
LATIF

CLASS BBA-6B

ROLL NO. 43

DATE JUNE 18, 2020

SUBJECT ENTREPRENEURSHIP

SUBMITTED TO PROF. ANUM

According to the presenter, there are some of the reasons due to which most start-ups fail. These
reasons are Deficiency of cash, Not right team, No market need, Unfriendly product and issues in
business model.
Presenter says that there are five myths that affect companies:

Myth 1--- You can raise money on an idea

This myth is false because it is not only the idea through which start-ups raise funds. This idea has
to be converted into a successful business. A start-up has to search for investors and business
angels to raise funds to reach at first sale of business.

Myth 2--- The CEO/founder is the highest-paid employee in the company

It is not true that the CEO is an individual with highest pay or salary. It is because CEO is not the
only person with whole charge. Moreover, the salary is not the motivation for CEO, but his or her
achievements are the source of motivation.

Myth 3--- Fast growth comes first, profitability later

A start-up can be growing if it has money in the bank and the investors are attracted and are
investing in your company. If the company is growing fast, it will be able to raise more funds. Fast
growth means the company is tripling or quadrupling its revenues and profit. The point is, the
purpose of a company is to make money. So, if the company is growing slow, it is better as
compared to zero growth. When companies raised too much money, it face many challenges like
investors demand return on investment that put pressures on company.

Myth 4--- You can pursue an acquisition

This myth is also not true. It is because a business cannot go for acquisition or gets acquired by
another company in its initial time period. The company has to grow its operations in order to
acquire or gets acquired by another company. As a founder, you can't operate for an acquisition.
You need to run your business period. Moreover, a start-up has to consider many factors in order
to acquire other company.

Myth 5--- That founder is successful

This myth may be true or not. Every founder wants to see start-up growing and earning high profits.
In other words, a founder wants to become successful. This may be the case or may be not. In
some cases, the idea of the fouder was converted into the business and in some cases he may fail.
So, those who says that founder remains always successful, they are wrong. In most cases, a
founder may hide frustration after failure until he or she could come back on feet with a new
business. He or she may only disclose frustration in close circles like with friends or family
members who understand this frustration.