Startup has become a buzz word lately, with people starting a business left and right; it has become chaotic for people wanting to start. There are so many companies to look up to, and so many that teach us what to avoid. Amongst these are countless articles to review and research that leaves us astray. This article can be one of those or help someone out by clarifying a topic or two. Nonetheless, many things contribute to the success of a startup, some of which are as follows.
Studies show that the vision of the founders and the core team is essential for where the startup heads. It is crucial for determining whether a startup is successful or not. Hence, for people wanting to venture into the startup scene should make sure that their visions are crystal clear not only to them but to the team that they are potentially going to work alongside. The idea behind formulating vision is to set up a skeletal framework for your startup to navigate through, which further helps to set goals and create strategies to smash said goal. It keeps everyone updated on the direction they are moving and helps to differentiate between what activities yield results and what are pure distractions.
A research by Jim Collins and Jerry Porras on "visionary companies" that have endured over 50 years found that not a single company mentioned "profit maximization" or "growth maximization" as their driving force. Profitability is a vital source of sustainability. However, these companies didn't consider it a prime factor for motivation. Instead, they prioritized their commitment to a core set of values. The core set of values helped the companies to understand the role they played in their society and the values that they created for those around them. This understanding created a sense of purpose for the companies. A takeaway for a new startup from these veterans could be to stick to their core values and make it their source of motivation to work so that their actions yield better results. Such core values serve not only as guidelines for what to achieve but also how to achieve them.
It is no secret that the world is transforming in every aspect exponentially over the years. Especially the technology change is profound that forces change in the economic environment. Market demands, preferences, regulations, and knowledge keep changing. What was once considered innovative and novel can become obsolete in a short period. A new startup must anticipate that they need to go through changes time and again to adjust to their market. It is only those who can make seamless transitions that get to enjoy success. Resistance to change only creates havoc within the company and disrupts the flow of work.
Another pointer for a startup to succeed is to have a systematic process of doing things. There must be a flow in the process when tackling problems, one must have a set process involving planning, commitment, monitoring, and evaluation. A startup must have a good business model canvas and should be well aware of its significance. Planning also assists the startup in allocating their scarce resources efficiently. A plan with no commitment of execution gives nothing in return. Therefore, commitment packs a lot of importance. Finally, it is equally important to monitor and evaluate the actions that one takes so that the wrongs can be detected and corrected right away before it creates further damage.
The final secret to startup success is to choose the right people; in terms of forming a team or looking for mentors to guide the startup. Neil Patel, co-founder of NP Digitals and Subscribers is considered a top influencer and entrepreneur. He believes that the people you choose to work with are capable of making or breaking your business. One of the studies on why startups don't make it states that the wrong team is one of the top reasons as to why a startup fails. The mentorship relationship is also vital. A study found that top-performing startups had strong personal connections to the founders of other successful companies. Choosing the right people is easier said than done and therefore requires extensive research and review before commencing the startup.