Driven by sky-high aspirations and a disruptive new idea, millions of startups kick off each year. They jump into the business bandwagon with a passion to be their own boss, create something from scratch, and of course, to make a bit of coin along the way. However, with the increasing competition in the business landscape, soon they confront the harsh swim-or-sink reality of the startup world. And only 10% of startup ventures make it to the final line while 90% of them end up fast in the business graveyard. No doubt, passion is an essential factor for success but following the passion blindly often leads a business straight to failure. So, along with passion, there are few other ingredients that you need to take into account if you want to make your startup successful.
Starting Slow
It is hard to resist the urge to begin right away when you have a great business idea. Having early enthusiasm is great, but don’t rush in with guns blazing if you want to survive in the competitive business world. It’s better to take a cautious approach and go slow. As you are going to make the first impression on the world with your product or service, getting things right before rolling them out is crucial.
Spending Wisely
What determines whether a startup is successful or not? Ultimately, it comes down to money. The business that is making a profit is deemed successful. No doubt, making money is crucial for business but keeping track of your spending is equally important. Many startups spend too much in the initial stages to bring in the best thing as they think it will give them the edge. However, this, in turn, will make them run out of cash when they need it. So, it is advised to be savvy with the spending and save money wherever possible while building a startup.
Starting With Testing the Market
Just because you’ve got a product or service that is appealing to a large market, doesn’t mean you need to tackle it all. Indeed, you should start small to fine-tune your process and ultimately get there. A classic example of starting with testing a small market is Facebook. Initially, Mark Zuckerberg infamously launched the Facebook site at Harvard and other Ivy League universities. Later it expanded its reach to others with a “.edu” email address. In fact, it was constantly innovating and adjusting to feedback before taking over the world. So, evaluating the market need and testing the market is the key to success for many successful businesses today.
Timing
As Bill Gross mentioned in his famous TED talk, timing is accounted for 42% of the difference between success and failure. When we think about it, it makes perfect sense. All new companies that are renowned today have one thing in common and that is timing. If your product is too early or too late for the market, it won’t work out.
Giving Attention to Customers’ Feedback
When Airbnb, one of the leading American startups was struggling in its initial stage in 2008, they decided to focus on building a product that people fall-in-love with. And we all know how successful the company is today. Giving priority to customers and their feedback goes a long way in overcoming early growth challenges with success.
Hiring the Best Team
Starting a business requires a number of key things to be in place to evade the risk of early failure. But having good people on board should be a core part of the business strategy. Why do you think that Apple is immensely successful and unrivaled in its field of expertise? If it wasn’t for the strenuous team vision, ruling over the smartphone market would still be just a dream for Apple.
Focusing on marketing
Consider an inferior product that is branded in a more appealing, and unique way. Now think about a superior product with plain, non-memorable branding. Which one do you think will outsell the other? Well, most probably it will be the first one. How you market your business affects customers’ buying decisions. Unless you focus on marketing your business online and offline both, it’s hard to gain the revenue which your business deserves.
Wrapping up
Building a startup is a long and grueling journey that revolves around business milestones. It takes cautious planning and unwavering determination to make your business a success. Sometimes it’s not the startup that fails but the people behind it give up. So, refuse to throw in the towel, keep your team stick together and avoid the mistakes that kill a startup Reasons Why Many Start-Ups Fail along the way. Just remember that it takes time and there’s no secret formula or shortcut for it. Knowing the keys to building successful startups will direct your way in the long, challenging and soon-to-be successful journey.