Reference no: EM133298433

Topic: As noted in one of this module's YouTube videos, the primary challenge on a new venture startup is to survive. That means getting the venture to a cash positive state before your bank balance gets to zero. Have you ever noticed a new restaurant that opens and closes in 6 weeks? Some challenges to consider:

• Does your product/service make a compelling case to potential customers?
• Is your new venture timely?
• Does your technology meet a real need?
• Are you organized for success?
• Can you face the emotional highs and lows of a startup?

New product offerings by existing companies also face challenges. In 1975 SONY released the Betamax Video Tape recorder and player. The product had great initial appeal to the consumer. The following year Panasonic and RCA released the VHS Video Tape recorder and player. Most reviewers concluded that the Betamax was a superior product due to better color and definition of images. Yet, VHS prevailed in the marketplace. The reasons had nothing to do with technology; they were wholly due to customer ease of use and benefits. Betamax tapes had a 1- hour recording time, while VHS had 2 hours. This one difference meant that consumers could record a movie from their TV set with VHS, but not with Betamax. Akio Morita, the co-founder of SONY and inventor of the Walkman (portable music cassette player), was convinced that a 2- hour format would not be seen as useful by consumers. Who made the more compelling case?

Question 1:What do you believe is the single biggest challenge facing a startup venture? Why?

Question 2: What can an entrepreneur learn from an initial startup failure?
Question 3:Thinking back to Module 2 and Christina Stembel (Flower Girl), what characteristics (personal and market) persuaded her to start her venture?