One Big Reason Why Start-Ups Succeed
It is always interesting to know, hear and understand about success story. In fact, small idea that many people have not even thought of comes in the market and make a huge buzz that everyone starts talking about it. It is fascinating to know what actually matters the most for start-ups success and behind the story of companies that made buzz and still doing well and serving communities while there are some of them that are gone out of business even though they seem to have potential to grow.
It is believed that organization is one of the greatest forms to make the world better place. If you take a group of people with the right equity of incentives and organize them in a startup, you can unlock human potential in a way never before possible. But if the stat-ups organization is so great, why does so many fail? If you have an idea and want to do start-up, then go this article and find out what is that one crucial factors which makes start-ups succeed.
For any business that have succeed over the years and maintained their position have five common elements on them and they are ideas, team, business model, funding and timing. Idea to a business is everything as it is a starting point for start-ups which allows entrepreneurs to come out of their comfort zone. Then comes a team because execution, adaptability also matters to explore whether idea could be changed into business, to know whether customers are willing to accept the idea or not as customers are the true reality for any business to become success or a failure. Clear business model shows do it have a clear path generating customer revenue. Funding is another element that is very crucial as it helps in so many different ways from buying resources to trainings and all, money is important. And then of course time in order to know is the idea way too early and the world’s not ready for it. Is it just right or too late or too many competitors, are some of the question which is explained by timing.
Analysis across different start-ups were done to come up with something scientific about what is that one factor that makes start-ups successful. While analyzing not only successful but also those some of start-up companies were included which had a high hope when they initially came in the market but failed over the period of time. All the companies were ranked all across of those five different attributes and scored to look at what factors accounted the most for success and failure.
The most important factor among 5 elements which were idea, team, business model, funding and timing, time was the one which was scored highest. Timing accounted for 42% of the difference among success and failure. Team execution came in second with 32% and the idea, the differentiability of idea, the uniqueness of the idea was positioned third.
It is not to say that idea is not important but it is interesting rather timing is what mattered the most. Considering the example of Airbnb company, that everybody knows about it. Well, that company was famously passed on by many smart investors because people thought, “No one is going to rent out a space in their home to a stranger.” Of course people proved that wrong. But one of the reason it succeeded, beside from a good business model, good idea, great execution, is the timing. That company came out right during the height of recession when people really needed extra money and that may be helped people overcome their objection to renting out their own home to a stranger. Same thing was with Uber, with great business model, great execution but timing was so perfect for their need to get drivers into the system. Drivers were looking for extra money; it was very important.
So in nutshell, execution definitely matters a lot, the idea matters a lot. But timing might matter even more. And the best way to really access timing is to really look whether consumers are really ready for what you have to offer them. And to be really honest about it, not be denial about any results that you see, because if you have something you love, you want to push it forward but you have to be very honest about the factor on timing.