HISTORYIn May 1998, GovWorks.com was founded with 8 employees. The idea of ​​such an Internet service was inspired by best friends and two co-founders: Kaleil Isaza Tuzman and Tom Herman. They quit their jobs to start working on the website. The company started with a few computers, a relatively small office and a car. Expanding very quickly in just a few months, the company grew to 30 employees, but that was just the beginning. Their goal was simply pompous: to transform the local payment system into a federal and then global transaction system. Even the company's slogan was simply shameless: "All payments for all governments." He attempted to gain support from organizations representing many different municipalities. For example the United States Conference of Mayors. These were so-called umbrella organizations. With their support, GovWorks could quickly become a national organization. Unfortunately, it didn't turn out that way. Tuzman and Herman underestimated the reliance small towns place on support from umbrella organizations. GovWorks expected the big contracts to arrive more quickly than they actually did. As a result, by early 2001 the company was no longer in business. COMPETITORS The market for their target was estimated at almost 600 billion US dollars. Of course, such a platform was more than unpredictable. Lack of experience simply could not give them the opportunity to evaluate it. Despite all these risks, they took the right option by increasing the initial capital. This was the merit of Tuzman, who had a good feeling and a clear point of view in business. However, GovWorks had many competitors, who offered quite similar and sometimes even inferior services... middle of paper ...... clearly a specific job description. The lack of determination in making the employees they were recruiting smart, easy to work with, well-rounded and productive brought dozens of unnecessary people into the company. The end of the “Internet bubble” led to three quarters of staff being laid off in six months. One of the most crucial problems was that the company was simply out of money. Their erroneous assessment of income and their expectations were too high. There were a few aspects that no one could predict: as has been mentioned, unprecedented rapid growth and a dangerous, untested market. On top of all that, they were simply victims of bad timing. In turn, board members and investors were often disappointed. As a result, you have much higher costs than expected and lower revenues. These are all the reasons for the insolvency of Govworks.com.