The numbers are not in a startup’s favour since nine out of 10 are going to fail, but the one that succeeds is going to accomplish something big. Every entrepreneur wants to be the one that takes on the market and changes the game; after all, we have Google, Facebook, Microsoft, PayPal, Alibaba and Apple as the examples. They all began as startups with a great idea and turned into international companies that changed the world we live in.
However, if you want to increase the chances of success, it might be prudent to read some of the tips and tricks from the people that did succeed. In this article, we are going to provide you with some of the best indicators for startup success.
Copyright: Photo by Ian Schneider on Unsplash
You have to build your idea on an infrastructure that already exists in order to achieve your goal.
The best examples of how important timing is are the Z.com Company and every predecessor to the Bitcoin. Before Satoshi Nakamoto published his white paper and introduced the world to cryptocurrency, there were a whole plethora of companies who tried to do the same, ever since the 1980’s. However, the difference is that the P2P network made it all possible, and he had the infrastructure and found a way to used it.
The Z.com Company had a similar technical problem in 1999, with broadband penetration and video codec. The owners launched a video entertainment company too soon when people didn’t have the proper tech to consume what was offered, and the business closed. However, when the broadband penetration problem was solved in 2005, YouTube launched, and we all know how that turned out.
The excellent idea concept has been the focal point every time startups are mentioned, and for a good reason. You can’t start building a business if you don’t have a good idea. What differentiates the startups that succeed from the ones that don’t is the quality and originality behind their theory. Having a solution to a problem or offering a new product/service on the market has to be a well-thought-out plan if you want to reach your end goal.
When Ashton Kutcher was asked in an interview why he invests in startups, he answered that he seeks know-how or access to data that other businesses don’t have. His answer can give you a good idea of how vital originality and resources are in today’s business climate.
Business Plan and Discipline
You need to know how much money you can invest and the best way to reallocate during the starting stages. Having a good business plan can save your company or ruin it. Managing finances and establishing discipline should be the backbones of your company. Moreover, having a personal high standard regarding the way you conduct business will earn you an excellent reputation in the startup community.
Fundraising and Marketing
Fundraising and marketing are intimately connected to one another because they are two different forms of the same thing, which is branding yourself on the market.
The initial fundraising is crucial for running a startup business operation, due to the simple fact that you need money to make your idea a reality. The primary duty of any entrepreneur is to fine-tune his skills when it comes to networking and fundraising. Promoting your idea on platforms like Kickstarter or 1000 Angels can lift your business off the ground.
Another issue you need to pay close attention to is the marketing of yourself, the company and the product/service. People need to know about what you’re selling before they can form an opinion about that, so taking the time to find the right channels and marketing strategies is crucial for success.