It’s no secret that 90% of startups fail. Creating a business is extremely hard – between rejections for funding and unsuccessful prototypes. At the same time, launching a successful startup is an unbelievably gratifying and amazing business. How is it possible to ensure that your startup will be a part of the lucky 10%? Read below to discover 7 of the most significant characteristics of a successful startup.
1. Idea
First and foremost, the idea is what separates one startup from the next. Each startup idea must be innovative and unique; it needs a competitive advantage that makes it different from what is already available in the saturated market. It’s the small nuances that make your idea distinguishable and stand out amongst the rest.
2. Founder(s)
Beyond having a great idea, every successful startup has passionate and innovative founders that are able to move the idea forward. A startup can only gain customers and funding because of the founders – without innovators who are willing to do whatever it takes to launch the startup, the idea will only be an idea.
3. Employees
It’s one thing for founders to be passionate about their own idea and to be willing to go above and beyond to see it succeed. What really identifies a successful startup is one that’s able to motivate others, aka employees, to have that same passion and drive. A great team of employees is one that is able to work cohesively and efficiently. The team of a successful startup is essential to its growth; without a great team, a startup may never be able to launch.
4. Set-Up
Startups that achieve greatness do so because they were set up at the right time. Set-up and timing are vital to the success of a startup. If a startup is released too early, customers won’t be prepared or interested in using it. At the same time, if a startup is released too late, customers will be less inclined to switch over from their existing services to this new startup.
5. Strategy
Founders shouldn’t just launch a startup into the market and see what happens. Rather, there should be a thought-out strategy put in place that plans out the course of the business. This strategy should comprise of all of the research the employees have conducted and outline the mission and values of the business. Once the strategy is set in place, the execution of that plan needs to be flawless for the business to succeed.
6. Response
Of course, even with a detailed plan, startups will always run into problems throughout the launch of their business – it’s inevitable. It’s important to know that potential customers are dissuaded from employing companies that are unable to handle crises effectively. What distinguishes the startups that are able to stay in the game is how they respond to these impending obstacles.
7. Marketing
As a business that’s new to the game, startups must be able to communicate to potential customers the unique characteristics of their product/service. Without this communication, customers won’t know who your business is or what makes you different from competitors. Before entering the market, have a marketing plan ready that outlines your brand and mission.
While it may be scary to know that most startups don’t succeed, this shouldn’t dissuade you from pursuing your idea. If you’re willing to put in the long hours, create a great, cohesive team, and stick to your brand, you may see your startup move into the 10%.