Why do only very few startups succeed?
Why do only very few startups succeed?
The most common answer to the questions like why you don’t want to do something on your
own would be lack of money. However, if the same folks are asked about what they want to do
in terms of ideas or visions, they would spell it out at a drop of a hat. They could go on and on
and on about the ideas they love coz they think that big ideas win big. Let’s ponder a little bit
about what startups are-
Any projects or ventures started with the goal of offering the solution to any existing problems
can be termed to be a Startup. The surge of technology has given a tremendous scope of doing
so many things since the digital and virtual world is now the most significant phenomenon.
The encroachment in the generally accepted ideas to make the difference, to solve any existing
issues, or to even chase the very passion can also be termed to be a startup.
Startups are comprised of two elements-
- Innovative ideas
- The hunger to make a difference by initiating change
What makes any startup succeed?
1. Right Timing– Timing is the most important thing in every startup. The cohesiveness
between what the general public wants and what one is trying to offer needs to be matched.
Many would stick in the thin layer of what they want to do and what others want since they find
no common ground to proceed. For instance, wanting to help the general public with a digital
payment system and the gap that is seen in the readiness of the prospective customers would
halt the execution of the startup. Understanding the psyche of the general public is very
important and surveys etc. are conducted for the same to examine the viability of the business
in terms of measuring the timing. Some selected visionaries would do what they are passionate
about and they would make the public feel the need for their newly designed products or
services which is quite an exceptional way of carrying out any new ideas to the mass. YouTube
became a success with the dawn of the internet. Many such videos playing apps were existent
even before YouTube. So, timing in that sense is everything.
2. Great Team and execution– As the saying goes, teamwork makes the dream work. Any
ventures are the sum total of the efforts made by individuals in a cohesive and coordinated
fashion. The sum is always greater than the total of parts if there are cooperation and
coordination. A single individual is only a part of the whole team when it comes to contributing
to the operations of any business organization. Planning, preparation, and then execution is the
only effective way of getting things done effectively.
3. Great Idea– The third comes to the idea, vision, and innovative thoughts. Actually, all of us
consider this to be the single most important element in the success of any business venture
which is not quite true. An individual could have hundreds and thousands of very innovative
ideas. However, they are nothing if the timing is wrong and/or if there is no great team to
execute the new ideas.
4. Business Model– This refers to the business structures and it is often said that structures are
the ones that help to hold the business while it is crumbling. The major mistake one commits in
this aspect is making a complicated, hierarchical, bureaucratic model of business where one
person passes the bucks to the other and never be accountable and sincere to the jobs assigned.
5. Investment – It might seem a bit ridiculous that the very first thing that is important while
thinking of any new business plan has come on the last. The only limited point trying to make
here is if we get all the four aspects of the business we discussed above correctly, this one would
not be a problem. The funding is the last one. Money or investment is also an important factor
in business. It could be generated in many ways. The only thing is money earns money if the
aforementioned four elements are fulfilled.