90% of startups Failure is not a novelty for entrepreneur. It is the real time to understand the reasons behind why some startups fail but more importantly why a few succeed.
When we came across the questions how many startups fail?
The answer is nine out of ten startups will fail. This is a hard and bleak truth.
Why? The answer is “because extremely optimistic entrepreneur needs a dose of reality now and then”. The reason behind this step is not to discourage entrepreneurs, but to support them to work smarter and harder.
What are the characteristics of those 105 startups that succeed?
There are many characteristics of successful startups.however; I have collected the most significant causes of success.
- The perfect fit.
Make sure the product is perfect for the market.
Fortune reported the “top reason” that startups fail: “They make products no one wants.” A careful survey of failed startups determined that 42% of them identified the “lack of a market need for their product” as the single biggest reason for their failure.
Do primary and secondary research to find out that your product is right for the right market.
As you are going to spend your time making a product, then you need to spend your time making sure it’s a perfect fit in the current market.
- Don’t over look.
The great entrepreneur does not ignore anything
Here we came up with a strong e case of Dijiwan, as after their company folded, Dijiwan’s leaders wrote this:
“A good product idea and a strong technical team are not a guarantee of a sustainable business. One should not ignore the business process and issues of a company because it is not their job. It can eventually deprive them from any future in that company.”
You can see they had a great product. They got a strong team. Then what did they lack?
Well the answer is they ignored the key aspects of business process and the “boring stuff.” The CEO thinks, “It’s my job to lead.” The CMO thinks, “It’s my job to market.” The lead developer thinks, “It’s my job to code.” They overlooked it.
Entrepreneurs need to know the fact that a startup can’t segment its responsibilities like that. As task assignment is far more organic in a startup, meaning that roles and responsibilities will overlap with common characteristics.
There are more chances that small things can turn into big things. Some of the most significant components of a startup are those annoying issues of business process, business model, and to handle the scalability.
One thing is clear, successful entrepreneurs always work on their business, not in their business. As getting caught up in the details of presentations, phone calls, different meetings, and emails can divert the attention of entrepreneur from the central point of the business.
- Make sure to hit the fast growth.
The company grows fast.
What is the current need of market? Answer could be fast growth. Who thinks that fast growth is untenable? And who even cares?
Growth, well fast growth — is what entrepreneurs yearn for, investors need, and markets crave. Rapid growth is the indication of a great idea in a hot market.
The founders of Wantful admitted that they did not achieve “highly accelerated growth required to secure later-stage venture capital.”
They required funding, but when the business didn’t grow fast as much as necessary, they weren’t eligible to secure more funding. That was real start of the end.
Always keep in mind that growth leads to more growth, which then further leads to more growth.
Being an entrepreneur you should not be satisfied with marginal single-digit growth speed after several months of working. If you can’t observe development in a certain amount of time after setting up the business, then the growth will not turn out. A company that is not growing is shrinking.
Everyone knows at least this fact that the second major reason why startups fail is that they “ran out of money.” Why did they run out of cash? The reason is that they didn’t grow fast enough.
Rapid growth in early on stages is a sure signal of future success.
- Versatile team building.
The team knows how to recover.
The most important factor for a startup is “team” and being an entrepreneur you must know the most difficult task is to make a perfect team for your startup.
The backbone of every startup is a team of people. Successful startups have more versatile team, which increases the chances of succeeding.
Don’t get the word “Versatility” in a limited sense, most of the time we took it as possessing more than one skill or talent.
However, versatility in terms of startup is the environment involves much more than someone’s skill set. It requires great involvement of mindset.
Create a team that must possess the talent to change products and can adjust to different compensation plans.
Team must have the ability to recovering from blows. Get the team with trait of cordially working together in hard times.
You will find out that startups with co-founders have a higher success rate than companies with a sole founder. Having a cofounder creates a partnership.
In nutshell if your startup lasts, you’re blessed and lucky enough. You’ve been talented to do something impressive that 90% of new startups haven’t.
Apart from luck there are more modest reasons why other startups succeed. They have a product or service that meets a need, they don’t overlook anything, they grow fast, and they pull through the hard-knock startup life. They build versatile teams.
If you are setting up your new business or have a plan to initiate a startup then you must need to follow these four characteristics, to set yourself up for major success.
