Is there any set formula that makes a startup successful? If not, then what are the factors that predict the future of a startup? The answer lies in an interesting mix of influences that impacts the growth of a startup. The current business scenario has made it extremely easy for anyone to start a business. However, sustaining and converting it into a profitable venture takes a lot more than just a favorable environment. Here are a few crucial defining factors that foretell the imminent success of any startup.
A strong team
Forming the right team is absolutely crucial to any successful startup simply because even if you have exceptional entrepreneurship qualities, it’s rare to accomplish great success alone. Having a strong core team is important to ensure the best execution of the company’s vision. It is the team that breaks down the company’s vision into short-term goals and fulfills them to pave the road to success. A good team brings synergy to the combined effort of the people and maintains motivation for better results across all levels of the business.
A strong business model is imperative to gain the attention of investors and stand out in the crowd. The business models of top performing startups clearly reflect their vision and signify the value their business will generate for customers while ensuring profit making. For a startup, a business model focuses on designing a process for the organisation to consistently deliver value promises and make way for its growth.
In the modern age, the approach of building a product and then testing it is outdated. Many startup founders who come from a non-marketing background often believe that marketing is all about advertising and spending huge amounts of money on product promotion. The truth is that marketing for a startup starts from the root level, where it is used to test the idea and gather initial information to determine whether or not the product idea is a success with the customers.
Any business plan is as valuable as its ability to be executed. Even a well-researched plan, if not properly executed, can compromise the existence of the business. When a business plan is executed well with the help of a strong team, it offers a steady platform for the growth for the startup.
Along with the early stages of funding, working capital plays an equally important role in a startup success. Even if finding initial fund capital difficult, opening a line of credit is always a possibility. Any startup without sufficient capital will flounder under the weight of its own debt, and obtaining adequate funding will need a strong business plan.
By Damilola Faustino