This is a Guest Post by Vineet Singh Co-Founder, CEO and MD, Buildzar
It is truly an inspiration witnessing how the current boom in the entrepreneur ecosystem has shifted the aspirations of the youth. A fresh college graduate is beginning to imagine a future different from securing a high paid job with an MNC or a Fortune 500. They are interested instead in becoming their own bosses by starting up and revolutionizing the industry.
Striving to become the next disruptive startup, one may believe getting funded is the only thing that counts. Although it certainly is an enabler but securing funding by no means guarantees success. The statistics seem to agree, as more than 50% startups shut down even after securing Angel Funding. The facts gets further glaring for technology startups as reportedly 9 out of 10 tech startups never really see the light of the day.
Hence one couldn’t help but wonder, what really contributes towards the long-lasting success of a Startup, other than getting funded? What initiates the metamorphosis of a fresh college graduate from being a novice to the market leader? Under the current competitive ecosystem, if odds are against your tech startup despite raising capital, what is the secret to success? If you have started looking for answers already, there is no need to go any further. Organizing years of experience working within the startup ecosystem, here is your comprehensive guidebook ensuring success.
5 Factors Guaranteeing the Success of Startups
When you allow yourself to thinking beyond securing funds, there are 5 factors in total guaranteeing a successful startup. Here’s counting the 5 strong elements that your startup must have in order to compete against the renowned brands and carve a niche for itself.
- Find the Idea that Counts
There have been entrepreneurs rising from rags to riches, all sparked by the hint of a powerful idea. In the present context, especially with #StartUpIndia initiative emphasizing on innovation and patents, the significance of a unique idea cannot be overstated. Ideally, your startup should solve a problem in particular innovatively, perhaps deploying disruptive technology. Hence, spend time nurturing the idea.
- Customers Call the Shots
The easiest way to ensure the success of your startup is by developing a deep-rooted understanding of the user. Your offering must remain relevant, authentic and meaningful to the target audience, or you might as well take an exit right now. As you go on nuancing and improving the idea, make sure you end up developing the right product mix, best suiting the needs of the right market segment. Instead of relying on a few opinions, conduct surveys, market analysis and research to address the pain points of users. The same shall help you secure the funding you dream of.
- A Business Model Designed for Success
While a unique idea is the spark you need to kick-start your start-up, a strategic business model with plans for funding, growth and expansion shall give your ambitious project the actual boost it deserves. Learn from the example of Google. The initial idea was to build web search model that is interactive and smart. The idea wasn’t truly unique and there were several other players in the market already working on a similar idea. However, what worked in the favor of Google was the impeccable growth, expansion and execution plan presented by its founders.
- Timing Is the Key
Without meaning to exaggerate here, timing is the secret that can either make or break the future of your Startup. The success is guaranteed if your product is able to solve a problem that the community is currently grappling with. Even if you are falling short on other criteria, don’t wait if you feel the timing is simply perfect for the launch. The corollary is also true though. If you have the right idea, the perfect business plan etc., but the launch is either too early or too late, your startup wouldn’t really make it.
- Funding Matters, Conditions Applied
Getting funded at the right time from the right investor really propels the startup on to the growth stream. Not only does it escalate polishing and grooming the product but also helps with the cash flow and working capital requirement. Timings play a critical role here as well and hence we have entrepreneurs vying to score seed funding to help initiate processes from the idea state itself. While looking for an investor, do your research well. If your attitude and personality, dreams and aspirations don’t align well with that of the investor, opt out of the funding. Otherwise you are headed for an inevitable failure. You should also be aware of other means of capital, like opening a line of credit, especially if you urgently require the working capital. Lastly, practice judicious use of the available capital. If you are burning cash in advertisement and promotions without making enough money, you soon risk going out of business.
Secret Ingredient of Startup Success: The Team
As you go on to studying startups and success stories, invariably you would discover that the team made all the difference. While putting together different elements ensuring the success of your much dreamt project remember to also form and nurture a team. Try and get together the most versatile mix of people on board, not just in terms of skillsets but also attitudes and personalities. An exceptional team, especially the founders will help you attract the right investment, recover from roadblocks and carve your own niche sooner than expected.
Bootstrap Your Way to Top
Lastly, consider the option of self-funding your startup. Entrepreneurship has always been synonymous with lean marketing and bootstrapping. Look for the sources available at your disposal and stretch them creatively – both financial and others. Realize the fact that even if certain startups receive amazing funding but there is an upper ceiling to the money available. Come up with a plan that would utilize the resources in the most prudent fashion.
Disclaimer: This is a Guest post. The statements, opinions and data contained in these publications are solely those of the individual authors and contributors and not of iamwire and the editor(s).