Startup organizations have the highest potential when it comes to changing the world and shaping the future. Startups are the route through which new ideas enter the marketplace. But not all startups succeed. Some fail, some stagnate and are forgotten. So what is it that the successful startups did? What are the factors that will determine if a startup will be successful or not? Here’s a list of 5 factors that are the most important:
1. The idea
Everything starts with an idea. The whole human civilization is the result of many ideas that were brought to reality by innovators and entrepreneurs. A business starts with an idea.
If you are planning to start a business then you probably already have an idea that you want to work on. But how do you know if your idea is unique and has a potential for success? The main factor here is originality. Original ideas are often the most successful ones. A business based on a unique idea stands out from the crowd, which is important for the success of any business.
But just having an innovative idea does not guarantee success you also need a great team.
To transform your idea into reality you will need a number of individuals working in different fields. This is your team. The success of your team is determined by their motivation, their expertise and, most importantly, their adaptability. Even if you have an average team in terms of expertise, if they are able to quickly adapt to changing market trends then you have an edge over your competitors. Your team is the engine that drives your business. So choose the parts well and organize them under a suitable business model.
3. Business Model
Different people use the term differently. So there is some ambiguity on the use of ‘business model’. The general definition however will be the plan for the functioning of your business. The business model includes the sources of revenue, the intended customers, the products and services, etc.
While planning your business model you should keep in mind the nature of your services/products, the ways you wish to market your products and the way you want to sell your products. Discover your working style and choose the business model that suits your style. You cannot be successful if your business model does not suit the way you work.
You will always need funds to start your business. How you plan to get the funding you require to start and run your business will affect the extent of success of your startup. You can fund your startup with equity, personal savings or loans from banks and other corporate.
All these have their own pros and cons. Equity funding means you share the ownership with others. Personal funding means the risk involved will be all yours. Loans come with interests and other requirements that you have to fulfill.
Keep in mind that the type of funding is important factor not the amount of funding. Plan your finances to give you the most return.
When you launch your startup is the biggest factor that will determine your success or failure. If you start your business too early, you will not have the demand to sustain the business. If you start the business too late, you will have to face a lot of competition. So try to time your launch when the time is just right. This can be a tricky thing to determine.
Ask yourself if the world is ready for your idea. Or if you do not have an idea yet, as yourself what new service or product will have the greatest demand in the near future.
Many businesses have started that failed despite having every advantage in the market just because the market wasn’t ready for it. Many ideas have took off even though they weren’t original because they were timed just right. Take for example Facebook, it wasn’t the first social media site ever but it took off because it was timed right.
These are the 5 important factors that any startup cannot ignore. How you handle these factors will determine if your business will take flight or crash into nothingness.