In order to find the answer to this question, we conducted our own research: we have studied a fair amount of reports and scientific publications. We’ve been researching the factors of startup success because we are an app development company that supports and assists different startups – when a business founder asks us to build their idea into a product, our team doesn’t just code for them — we invest time and money into researching how we can help them succeed. We guide them through the development procedure from point A to point B breaking down every step (learn more about Product Development Strategy Session). According to our research, here are the five reasons why startups succeed:
They Have Unique Ideas
You need to find a way to solve users’ problems, you need to have domain understanding, and you should come up with a solution that no one has actually formerly developed previously – or, at least, improve on an existing business idea. Like in the world of fashion, some ideas are trendier now than others. For example, fifteen years earlier, people were approaching us wanting to develop socials networks. Ten years ago, everyone was developing SaaS apps to automate workflows. Five years earlier, the blockchain trend began – and everybody was disrupting their industries with blockchain. Just keep in mind that your idea needs to be unique, especially if it’s following a trend. It needs to be special to you in one way or another since you can’t simply copy what other people are doing and expect to be successful.
Have a great idea but don’t know where to start?
Want to be next on the list of extraordinary ideas but are afraid to pick the correct tech pattern? Or are you afraid to fall with your vision and end it like that? Put your sorrowful worries away and book a free Product Development Strategy Session! We are an experienced and professional digital firm that supports and assists different startups. We guide them through the development procedure from point A to point B breaking down every step. Our specialist discusses the development priorities and supports their innovative idea. So what’s holding you back? Leave a short description of your distinct idea or a task on our very first and free advancement action: Product Development Method Session. And we’ll contact you in no time!
They execute their ideas by creating a team
Ideas are terrific, but everybody has them, and just a few people actually start working on them. And only a few people bring their concepts to life. That’s because execution is hard. We do not always have a step-by-step guide on how to put our ideas into practice. Often, execution is an experiment, filled with trial and error and failures and pitfalls. Having an experienced team that can assist you to execute your concepts effectively. But developing a team that can work as a single organism is yet another obstacle. Sustaining this group, keeping them motivated to continue, giving them hope and a reason to go to work every day – it’s not constantly basic or easy.
We have seen teams fall apart during their product launch in spite of collaborating together for many years. We have seen teams fall apart a couple of months after they experienced success because some employees were in for the money only. On the other hand, we have also seen teams that have collaborated for more than a decade and remained strong throughout their time together. This is the kind of team you dream about. A people you can trust. To earn that trust, however, you require to be a great leader and set a positive example to guarantee to ensure accountability and motivation.
Startups get funding
If you can show that your business idea fits the market and your user base is growing or will grow quickly, finding the money will be easy. Many startups stay underfunded either because they do not show a convincing growth rate, or because they deliberately chose not to be funded. Bootstrapping through the early days can have its advantages. Yet, even when repeat business owners launch a new startup which that can afford, they still prefer to raise outside capital. It brings in more excellent investors with a beneficial interest in your success.
Not running out of money is the CEO’s primary task. It’s why most companies fail. Some can win just by raising huge financing rounds. Eventually, it includes trustworthiness and visibility. It allows you to purchase the business, move fast, hire well, and make financial investments that will settle big in the days ahead. Storytelling is the key thing in fundraising. Being able to catch the essence of what you are carrying out in 15 to 20 slides is the way to success. For a winning deck, take a look at the pitch deck template developed by Silicon Valley legend, Peter Thiel where the most vital slides are highlighted.
Read more: Optimistic Strategy Of A Solid Business Pitch
Strong Founding Team
Everything starts with the founders. Their smarts, grit, passion, and determination to learn trumps whatever else. Even the business idea. It is based on the founders that the company will be able to raise financing in the early days, or not. You can be an army of one or a team of several ones. Or anywhere in between. Just make sure you have that sticktoitiveness to get you through and inspire others to wish to occur for the journey.
Read more: How to find the perfect tech co-founder for your tech startup
They Have Good Timing
One of the primary factors of a startup’s success is great timing. Forty-five percent of the difference between success and failure is about releasing a product when the market wants it. According to us, there’s no such thing as a saturated market due to the fact that you can constantly find a blue ocean and offer your product to a specific niche audience. For instance, when the PC market ended up being saturated, Apple began offering a different type of computer system and prospered wildly at it. A lot of businesses release their products to markets that have no idea about the issue in the first place, which usually ends in disaster. When Microsoft developed Zune, they (and other competing companies) invested millions of dollars trying to educate users about why they should switch from CD players to portable MP3 players. Apple utilized another way. They understood the principle of having good timing. They began marketing iPods when the market already ‘accepted’ MP3 players, profiting from the efforts of others.
Have Great Mentors
You can’t know everything. You are not able to learn it all before you start a new business. At every action of the way, you’ll need to keep growing as a leader faster than your business. Or your company will outgrow you. The most successful business are those who surround themselves with the very best business mentors they can find. These are fundraising consultants, solid M&A consultants, board members, and even CEOs. Surrounding yourself with experienced people increases by a mile the reasons why startups reach success.
Read more: How Your Startup Mentor Can Change Your Startup
Need a tech mentor for your startup?
Want to find a great startup mentor to help you with specific issues? We here in Jetruby will help get your startup or side project where it needs to be. We have developed a technological flow that most of our clients undergo during the past 10 years of constant collaboration and cooperation with various startups. The first one of which is called a Product Development Strategy session. It is an accessible business consulting service where our experts will produce a general plan covering the future product development and the action plan with high-level features. Already got interested? Leave your project details below, and we will contact you in under 24 hours!
When the product-market fit isn’t working or happening, it’s fairly obvious: Consumers and clients aren’t getting value from your product, nobody is actually speaking about it, you have no reviews, and deals are consistently not closing. All of these are symptoms of a lack of product-market fit.
If no one wants your product, you don’t have a market.
When the fit is taking place, success is explosive. You’ll see that customers and clients are nabbing up that item quickly, or usage of your product is growing quicker than you can keep up with. Your company account is filling up, you have the ability to hire more assistance personnel and employees. You have actually successfully established a product-market fit when engagement is piling up much faster than you can manage. Until you find it, your company is just blowing around in the wind and burning cash. Once you crack the code, things can take off really quickly and naturally. Get out there, speak with clients, test, get feedback and sharpen it again up until you have actually got it.
Succeded ones have a Business Model
Having a business model is the second factor for startup success. You need to have a business model when you establish your startup, though it’s great to understand that it’s fine to alter and establish it as soon as you see that your product is wanted and needed by clients. Marketing and sales take precedence.
While having a sound business model in place is necessary, a startup can endure without it too. However, there are exceptions to this. For instance, YouTube began as an easy online video sharing platform with no profits design in place. Nevertheless, its developers realized the need for their item and gradually presented functions that would help them earn money from their service. While crucial to a start-up’s success, a business model can be added at a later phase when your clients require what you have to offer.
Beyond that, you require a product development strategy, persistence, determination, a willingness to be flexible, and a world-class team. You also require to be frugal, bright and cultivate strong advisors. The best way know to do all these things well and effectively is to follow a systematic process where you plan, devote, track outcomes, promote accomplishments and raise the needed capital, or “fuel in the tank,” to drive the development of your startup.
Always remember, it’s not an easy task to run a tech startup company, so don’t refrain from asking for help. Having someone to guide you is better than failing alone. We at Jetruby help startups build their businesses from scratch, guide them by giving free startup product development consultation, and most importantly, help them achieve financial freedom by developing their idea into a business model. Now that you have these ideas, want to know which one of the tech startups will work for you? Contact us now.