Thousands of startups flowing worldwide. Some were recognized widely, and a lot many flopped. Despite of all the aspects why do these startups fail to make an impact in the current scenario.
Ever wondered, why such efforts get doomed before flourishing. Hence, it becomes the primary concern to know “The 5 Biggest Reasons Why Some Startups Succeed“
5 things that would lead a venture to boost :
How good is the team
Team plays a intense role in determining the future of a startup. A startup is basically founded by one or few people dedicated to carry their vision forward to build some kind of innovated product or modifying the existing one.
All of the companies like Apple, Amazon, eBay, Salesforce all of these had one or more people to carry that vision forward and the commitment to see it through success. If you have a good team then you have a big advantage over the people who are in the same road to implement your idea in their way.
How good is the idea
One need to have a good idea to build a successful start-ups. A bad idea, however well-executed, leads to failure in general. The word idea is somehow overloaded. Some ideas are great, and are imagined to be huge. But, when implemented they come out to be a failure and we simply blame on the execution process. This could also be possible that the idea we thought to be grand might have been a bad idea in the current scenario.
Good ideas are clear, defined, understandable and contain flexibility that is required for the “non-deterministic” nature of the market.
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How good is the financing
There are multiple reasons why a startup declines or fails to make an impact; one of which is they run out of cash. With the advent of globalization, startups aspire to grow beyond their domain, and spread over a large scale. And, in this process sometimes over stretch themselves in terms of finance management. Hence having a good idea as well as an excellent team for execution not always lead to a huge success if you’re lacking in terms of capital. Hence, a startup needs to have a good financing source to have a good execution of the product.
How good is the business model
The first thing we need to do is to create an executive plan and then compare ourselves to our business competitor and then create a business model accordingly. A good business model is a road map to success, as it includes all the areas of concern.
A noteworthy advantage of a good business model is that it can give you a competitive edge over other companies in your industry. Implementing a good business model gives you unique reputation in the market-place.
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How good is the timing
After analyzing various ventures and their successes, many experts concluded that the only factor which influence the most is the timing!
How good is your timing, when is the product or venture launched and the other scenarios of that timeline. Timing plays a crucial role in establishing a path of success for the new ventures. Is the society ready for the product or service which you are going to provide, or is it too late for making an impact. Timing basically decides the extent of success your venture is about to bear. This could be explained via stating an example of how timing can prosper your venture : Uber, was launched when the economy was at it’s very low. In such a down economy, people were eager to make some extra money to fill their pockets by driving their cars around the city for a ride to the strangers. And Uber was the righteous platform which fulfilled that need.
Contrasting it is another example, of how timing led to the decline of an amazing venture. An online entertainment company named Z.com was launched in 1998 with very powerful resources and funding. It satisfied all the four factors of a startup to succeed, but couldn’t match the timing. The only thing which led to its fall was the timing. It was launched too early. The world wasn’t prepared for the broadband scaling as well as the problem of watching online videos. Hence by 2003 the result was Z.com ended at a low note .
And two years later, YouTube took that position and is a huge success till now. It was all because of its apt timing .
Hence if you’re planning to be an entrepreneur, make sure your team is good and your idea is worth the effort. And remember ,timing plays a very major role in this. Your product or service needs to be perfectly timed. You have to make sure that if the world is ready for you product.