Over a period of past few years, there has been a significant rise in the number of startups. Every year, many people with a proficient idea in their mind, try to pave their way to accomplish the ultimate goal they have in their mind. Startups, a concept which has been existing since a long time, has flourished admirably recently. More than a phenomenon, Startup is a long-term process. A startup is a journey into the unexplored in which you need to be mettlesome enough to take suitable risks and skillfully overcome various uncertainties and challenges.
Although millions of startups exist, we see that only a chunk of them actually succeed. When keenly analysed, we notice that there are a typical set of reasons why a few startups succeed or fail.
The Vision of a company should be a long-term plan that it envisages to accomplish.
Here are the mission statements of a few companies.
Google – “to organise the world’s information and make it universally accessible and useful.”
Twitter – “To give everyone the power to create and share ideas and information instantly, without barriers.”
Notice how Google doesn’t mention anything about “Search” or Twitter’s statement which doesn’t say anything about “app”.
Vision is a long haul concept. Successful Startups have a clear-cut and a well-defined vision in order to set goals that illustrate their path and progress.
2. Ability to take risks
The path to glory is always filled with a number of pivotal risks that need to be taken. Successful startups are always prepared to take such risks. Most of the profitable investments are coupled with a high amount of risks. However, before any of these risks are actually taken, there should be a thorough blend of research and deterministic approach associated with them. Most of the startups lack this quality and thus fail.
3. Pace and punctuality
Once the things are planned, there needs to be a proper and punctual execution of plans. A startup must be able to launch a product on time. There shouldn’t be any delays, whatsoever. Also, in order to stay a step ahead of its competitors who have a similar niche, a company needs to quicken the pace at which it launches products. If you make a mistake, you must quickly learn from them and get ready for future endeavours.
4. Budget Crackerjack
A successful startup always plans its budget in a highly efficient manner. It is extremely important for the company to set milestones and plan the funds accordingly. It is necessary to maintain a stable short-term and long-term financial plan. At every step, you must check whether the cash flow is in accordance with the financial model it is based upon.
5. Social reticulation
It is highly important for the members of a startup to have a tenacious acquaintance with potent and influential people who have their roots embedded deep into the startup world. There might be a chance of one of them being your potential investor.
Apart from that, the leaders also need to develop a sense of confidence, trust and unity among the co-workers who might be required to make sacrifices like salary cuts or increased work hours for the sake of company.
6. Regulation and Discipline
The beginning years of the startup are always the toughest. Individuals need to impose certain restrictions upon themselves in order to get the task done. The whole team should work in a fun yet firm environment. Self-discipline plays an important role is the success of a startup. Even though your colleagues might be your friends, you must be very clear with all the paperwork and legal formalities.
7. Ability to adapt to various diversities
One must be ready to embrace all the changes that may happen in and around your startup. The demands of the market may change over a period of time. You must identify the shifts and work accordingly. You may even need to change the plan altogether.
8. Determination and Perseverance
It is almost impossible to make any product absolutely perfect in the first attempt. It takes numerous tries to make the product stand out in the market. People often don’t accept new things easily. You may face an initial breakdown but you must not lose determination. Instead, you should turn the situation to your advantage by learning from it.
9. Fundraising Dexterity
An idea may just remain an idea if it is not powered by the fuel of cash. Funding is a key element for a startup to survive over a long run. The CEO needs to have an ability to convince various investors to put money in his startup. Once you become successful, you can self-fund your future projects.
This is the most important phase of the startup excursion. Many startups which seem to have magnificent ideas fail because of improper execution of them. You must make sure that the ultimate goal is living up to its expectations. In this final process, it is essential to make various critical and conscious decisions based on the response of the masses.
Startups which realise that a “Million Dollar Idea” is worth nothing when that idea stands alone, tend to succeed. Working in a proper manner, fixing their mistakes, taking various challenges are some of the things that are essential for a startup to convert itself from a Startup to a Unicorn.