The life of an entrepreneur is not easy. Especially if you have a startup. Most startups owners are young people, being out there, in the business world, for the first time. They try to compensate their youth and lack of experience with passion and dedication. Although these factors are absolutely necessary for the long-term success when a company makes its first steps on the relentless competitive market, enthusiasm is just not enough. To make your life easier we put together a list of top 5 most important factors that can bring your startup success or failure.
1. The people you gather around you
It’s a well-known fact that in order to succeed you need a team. You can’t do it all by yourself. Pay great attention to whom you choose to be by your side when you will enjoy the fruits of your work, but also when things are getting rough. Having a team besides you is also a key factor in getting financed by business angels. They will not invest in one man show kind of guy. The reason is simple – if something happens to you and you cannot deliver what you promised they will loose their money. So they will always go for the team.
2. Funding your business
Yes, 90% of the time a startup needs money before producing any. Maybe this is the pitfall of startups. Getting money can be though, but with a good idea, a strong team and a business plan, everything is possible. Try to get them from the 3F (fools, family, and friends), business angels (you will have to give up a percentage of your company) or try to get a bank loan.
There is a right time for everything people use to say. A startup is no exception. If you push your product or service on the market too soon, even if it’s a great one, people might not react as expected. Imagine having the idea behind Uber in 2000 instead of 2009. It would have been a total failure. Why? Because most of the people didn’t have smartphones back then, the technology was not advanced enough to develop such an app, and having internet on your mobile phone would have cost a fortune.
If you push your product or service on the market too late, the competition might be so far ahead of you that you would need to invest way too much just to make your business running.
4. Business model
Knowing what to do, when to do it, how much it will cost, and who will do it is something every entrepreneur should know. Especially a startup owner. When the money is tight, the team is small, results put pressure on the company, having a good action plan can only help. Plan carefully your spendings and income streams and make sure you stay in the boundaries.
5. The idea
In the end, it all starts with an idea. The key is how you implement that idea, how you make your dream become reality. There are a lot of ideas out there, it even doesn’t need to be your idea, it only matters who can make it work.