The single biggest reason why start-ups succeed
How many times did you have the chance to see start-up businesses reach success faster than anyone believed they would? While everybody says that you embrace a set of risks when you start a business, it seems that certain start-up owners managed to dodge the risks and find their way toward success quickly. So, what drives the success of start-ups? What factors are most influential when it comes to this matter? In the following lines, we will dig deeper into this aspect and see what propels some start-ups toward success.
According to specialists and experienced business owners and creators, there are 5 main factors that contribute to the success of a business.
Believe it or not, timing matters as well. There are situations when the world is not ready for your idea, no matter how great it is. When ideas are too advanced for the current society, they may fail or you must be prepared to invest time and resources into educating your audience and potential customers. However, when the timing is just right, meaning you managed to answer the world’s need precisely when it needs it and you’re the first to propose such a solution, then the business will enjoy a wild success.
- The team
Another great factor that leads a start-up to success is the team behind it. When you take several people, from various backgrounds and with different levels of training and experience, and put them together in a team, outstanding results can be achieved. The team may be even more important than the idea since this is the engine that transfers a theoretical plan to concrete actions. So, remember, a great execution plan made by a dedicated team can do a lot for a start-up.
You can’t start a business without having an idea first. For many, the idea represents the central piece of any kind of business, this is why it is considered a central factor. Also, let us not forget about those amazing moments when we find an idea to solve a problem, find ways to be more effective, or create a product or service meant to better answer the needs of the consumers.
- Business model
Besides a good idea and a great team, a business should also have a well-made business model. This model will help the start-up generate revenues from the customers, so that it covers the costs and makes a profit, in the best-case scenario. In other words, the business model is the path that needs to be taken in order to get closer to success.
Some start-ups manage to attract a good amount of funding right from the start, which is essential to survive and cover operational costs until the business is eligible for making a profit. However, if your business gets a good amount of traction right from the start, it doesn’t matter that it is underfunded. Thus, you don’t need to pump a lot of money into a business to make it successful.
While the idea matters a lot and so does the team, the most important factor that weighs in the success of a start-up is timing. If you get the timing right, reaching success will be a smooth ride. How to assess timing when looking to create a start-up? Do the research and see whether your target customers are ready to receive what you have to offer through your start-up. And be very honest about what you see and what you find, no matter how much you love your idea. In other words, keep your eyes and mind open, recognizing whether the audience is prepared for your idea and needs what you want to provide or not. In the latter, it may be better to change the idea or wait for better timing.
Here is an Inspiring taalk where Bill Gross Nail down to the one reason for startups success.
Bill Gross has founded a lot of startups, and incubated many others â€” and he got curious about why some succeeded and others failed. So he gathered data from hundreds of companies, his own and other people’s, and ranked each company on five key factors. He found one factor that stands out from the others â€” and surprised even him.