Did you know that nearly 90% of all startups fail? Researchers and business leaders are trying to find out why certain businesses are able to succeed, while others get kicked out to the curb. Some fail due to their flawed product or idea, and some fail due to their lack of revenue or funding. However, even businesses with great products and large funding can result in bankruptcy.
That being said, there is still hope for all the entrepreneurs out there who are willing to sacrifice everything to build their dream company. There are certain traits that will definitely help a small business prosper and become one of the 10% startups that succeed.
So what factors matter the most for startup success?
What do startup companies AirBnB and Uber have in common? They were able to open their business at the perfect time when their audience needed it the most. Timing is everything for a startup.
Both Uber and AirBnB came at the height of the recession when people needed money the most. Hence, renting out one’s apartment or house for extra cash was a risk that many people were willing to take. The same can be said about Uber, when people were willing to drive strangers in their car for some extra money.
Not only were the ideas of both companies unique and intelligent, but the timing of their business was crucial for them to become a startup success.
A great startup needs a great team behind it to make sure everything is running properly. Imagine a luxury car with an engine of a 1990 Toyota Camry. That luxury car may look nice on the outside, but it won’t be running for long unless it changes its engine.
You must have a core group of employees who shares the same dreams and vision as you. If your core group isn’t in sync, then there is no way that your business can grow. That being said, once you establish a core group that you trust, you need to find more employees who share your company’s dream.
When your business eventually grows and you realize you need more employees, then you have to make sure the new workers are on the same page with the overall vision of the company.
How? Transparency. You need to be honest and truthful to your team. Share the good news and the bad, share the data, and share the results. By communicating with your teammates, you portray their importance and the vital role that each of them have in the company.
Last but not least, your idea is crucial for your startup to succeed. Discovering the right idea that can be of service to your audience can greatly help your company to prosper.
If you try to start a company modeled after Google, you’re most likely going to get run down. You need to be innovative enough to try and find ways to be different from your competition, while having the ability to serve the needs and wants of your audience.
Maybe you see a flaw in Google and have an idea to build off their model while offering different services to customers. Finding issues that everyday people have is a great start to discovering a service or product that people may want or need.
There’s always a chance for a startup to succeed. With the right idea, right team, and right timing, a small business can prosper within a few years. Don’t stop dreaming entrepreneurs!
It is your innovations and ideas that will create the businesses of tomorrow and may even change the world in the process. Just make sure to do your research on your customer, economy, investors, etc. to reduce the chances of startup failure.