A startup is a company that arises from a great idea, or like Michael Wolfe, founder of several companies says: “It is possible to create a good idea, but great startups are often the result of ideas that look ridiculous before knowing they will work”. These companies start small, with the goal of becoming profitable in the shortest time and with the desire to be consolidated and grow exponentially.
Which elements influence the success of a startup?
This is hard to predict since there are several aspects that determine success, and in some cases, these aren’t in the hands of the entrepreneurs. Frequently we hear about companies that have been in the market for a short time and unfortunately go out of business; but there are also successful companies that experience an amazing growth.
There are three important aspects that do not guarantee sustainability and success of a startup, but they do encourage planning, development and progress of the company and its team.
Innovating with the service or product
Innovation is one of the main aspects we have to consider when thinking about a startup; since 10% of successful companies are those who offer a product or service that is not in the market already, or those who satisfy a need. Several studies show only 10% of startups succeed. This may be due to not satisfying a need, not having enough funds, not having the right team, cost related, not having a business model, etc. It is important to review these aspects before starting.
You could say organization is one of the key aspects for a company to function correctly internally and externally. This should not only be present within partners and team members, but it also needs to be implemented in the business model, marketing, promotions, etc., in order to ensure a stable growth and determine a successful future for the startup.
Learn to listen and don’t be afraid to fail
These two qualities are key, but also two of the hardest ones. As entrepreneurs it is very important to learn to listen to everything people might have to say and to get feedback; this will help the company improve and consolidate over time, taking in consideration that in every startup, time is one of the most important and most valued aspects. However, sometimes fear to fail overcomes people and automatically we create a barrier that blinds the decision-making process and growth forecast in short, medium and long term.
As entrepreneurs we should leave this fear aside, because if we don’t take risks we cannot be successful.
In startups, just like any other business, luck plays an important role, but who said it is just about luck? Let us be better entrepreneurs and take in consideration these aspects in order to overcome obstacles, motivate our teams constantly, and so small businesses become a dream come true.