June 14 2019
Greatest start-up myths
Their earnings are in the millions, because their funding comes from the European Union. The millennials employed there work with the most expensive equipment and travel from one conference to another. Their business is usually selling marketing services or complex IT products. If you’d like to believe everything that is written about start-ups on the Web, hundreds of new companies would suddenly emerge on the market…
Start-up owners are business sharks or at least that seems to be everyone’s perception. Nothing could be further from the truth. Most often these are persons who have an idea for an innovative product or service, but they do not know how to turn it into a booming company. Many start-up founders are still learning how to run their own business.
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Start-up? Two programmers and modern technological solutions most people never heard of. This is one of the most prominent stereotypes. Whereas young companies provide solutions for the medical, as well as the eco or trade industry.
Students’ wild ideas
Start-ups are usually small and young companies founded by students or graduates. They have no experience, but more enthusiasm than most other businessmen can muster. Is this really the case? According to Startup Poland, 58% of start-up founders are over thirty. As it turns out, young entrepreneurs start off by accumulating experience (usually in corporations) and only then decide to start a company.
An idea worth its weight in gold
This is how it all starts, but just an idea won’t cut it. You also need financial resources, employees coordinating particular activities and a business model. According to statistics, 90% of start-ups fail. So before starting a business, consider additional activities beyond a product or service idea.
Investor – a guarantee of success
Start-ups treat investors as business angels. Once a new company receives external support, all foretell its success. Whereas funding should only be a means to an end, ensuring that your business can grow to finance itself. Unfortunately, it is often not the case.
Start-ups are mostly financed with European funds. Are they now? Data from Startup Poland shows that the main source of income for young companies are their customers (68%). Regular earnings are recorded in 41% of start-ups selling products and services. Studies have shown that European funds may provide support, but are not the main source of funding.
Start-ups are popping up everywhere
It is true that start-ups may be created in every Polish town. Very often the idea behind the business is formed “after a few beers”. Still finding a seat for your company is important, just to mention a place to meet with business partners. The majority of start-ups in Poland are created in Warsaw (25%) and Wrocław (12%). Kraków and Poznań are not far behind.
There are plenty of myths about the start-up market. But what are the facts?
- 83% of Polish start-ups work in a B2B model – they sell products and services to other companies;
- one out of three start-ups cooperates with a corporation;
- 50% of start-up founders gained experience abroad;
- 50% of start-ups are financed from private funds;
- 30% of start-ups reward their employees with company shares.*
*Data based on the report: STARTUP POLAND 2018.
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