Answer:

1. No market need
2. Ran out of cash
3. Not the right team 

Questions:

1. Why do you think it is so hard for start-ups to figure out what the market needs?
2. Think of a company in your town that has done well (i.e. has lots of customers, always busy, been in business a while). Name three factors that you think led to their success.
3. You want to start a company and know the importance of having a great team. What skills/traits would you look for in potential employees?

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Visual Capitalist): 

For anyone who launches a new venture, there’s a grim reality involved: eventually 90% of startups bite the dust, and 51% of all businesses die off within a period of five years. While failure is not fatal, there’s definitely no harm in stacking the odds in your favor in the first place. With some proper insight and critical thinking, the chance of a venture’s success can be increased by mitigating some of the most common startup risks.

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Interested in starting a business? Be sure to check our Entrepreneurship unit page! 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.