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The 5 Biggest Factors Why Start-ups Succeed

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Why Start-ups Succeed

In any place where new technologies are coming out with aim of solving problems, Start-ups are found.  Start-ups are a great way for an idea to grow and succeed; many start-ups don’t get the fertile ground to succeed. We shall take a look at why start-ups succeed.

So many factors spell whether or not a start-up will succeed or not.  We shall talk about the biggest factors why start-ups succeed.

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Let us read more to discover the factors that will help us get our start-ups off the ground and succeed what at we do.

We shall analyse just five factors that determine a start-up’s success based on a Tedtalk by Bill Gross.

According to Bill Gross, Idea is 28%, Team is 32%, Business Model is 24%, Funding is 14% and Timing is 24% why start-ups succeed.

Start-up Business
Factor that Enhance Start-up Success

Timing took the highest percentage of 42.

That’s why he said “Execution matters a lot, but timing might matter even more”

5 Reasons Why Start-ups Succeed

Timing

Timing
Timing Matters

Timing might matter even more says Bill Gross who has created many start-up and has helped many others grow and succeed.

Bringing an idea in a time it is not needed will be a waste of time to the business owner.

Some people might argue that the idea or the execution of it is much more important to a business start-up’s success. Timing when to lunch and unveiling your business for the public consumption is very crucial to the success of your business start-up.

You need to take time to figure out whether the world needs your idea at the moment. An idea can be early or too late.

An idea can be too early in the sense that people don’t have that problem you are trying to solve. Take for example you claim to produce a vaccine for a disease that nobody knows of. You are not going to have any market for that.

An idea can also be too late especially when there is a very tough competition in that area.

Take a look again at the scenario I gave with vaccine. If someone again develops a polio vaccine, it is definitely not going to have any market because the problem to solve is almost no more here. The vaccine will end up not helping at all because there is already a vaccine existing for polio.

Team and Execution of Idea

Team and Idea execution
Team and Idea execution

The second most important factor after Timing is a team that can well execute the idea to help the start-up succeed. A start-up have to very flexible and adapt to all kinds of situation so as to be able to solve the unexpected issues that may arise in the start-up as it always does in Business. The team’s adaptability is their ability to handle the unforeseen situations and come out of it strong and capable of running the start-up business again. This character is tested when customer start using your products or experiences your services and react negatively or ended up writing a negative review about the Business.

Idea

idea
Idea is Important

Most if not all start-up are based around an idea or ideas. While idea is the only thing that will first spark in the mind of someone who wants to create start-up business, it is actually the third factor that determines the start-up success.  You can find start-ups with great idea but still failed because of the wrong timing and incompetent team to execute the idea.

The Business Model

Business model
Business Model Is good but not Necessary

A start-up can survive without a business model but it is always good to have one. There are exceptions to this though. Some businesses like YouTube started initially as video sharing platform but as demand for their services increased they turned it into a money making venture. You too can add a business model later in the business if your customers demand much for your products.

Funding

Funding
Getting Funding

If you have a start-up that came at the right time, has good team to build the idea, good business model in place then getting funding is not going to be a big deal. You can easily obtain loan from a bank or just start if you have saved money to start up a business.

If you know who to contact and where to go then getting funding is just a walk in the park.

Conclusion

Having an Idea to start up a start-up Business is one thing, getting everything else is another.

To have everything right you have work at making it right. Avoiding mistakes business owners make and acquiring the right skills will get you going on the right path.

Now that you have seen why start-ups succeed go and implement everything you have read here and create your first start-up company.

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What other factor contributes to a start-up’s success?

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