There is a lot of buzz about startups now. From Amazon to Big Basket, startups are earning huge and now these startups have created their own space in the customer’s mind. Let us have a look at the key points that why startups succeed:
Problem Solving Idea
The success and failure of a startup depends on how efficiently and effectively a startup solves the problem of the customer. It is the strength of the idea that is the first building block in the success of a startup.
Is it compulsory that a startup must be solving a problem? NO! But if startup is not solving a genuine problem, it should be providing a more efficient solution to the problem already solved by some other startup.
Timing is everything. Right decision in wrong timing may affect your startup success. Sometimes, it is market situations that create a problem (problem for an entrepreneur is an OPPORTUNITY). Then it is upon he entrepreneur how opportunistic he is to give solution of that problem and enjoy first mover advantage.
For example: Since Paytm was already a payment solutions application, but owing the changes in the Indian Markets like: Demonetisation and then Digitalisation of course. The company implement some serious changes in its service that led this startup to great heights of success.
There are many startups that don’t see the light of the day because they don’t have a sound business model. If the startups are not able to generate revenues and show consistent increase in losses it is very likely that the startup will fail. So to make startups succeed it is very essential to have a profitable business model.
There is an old proverb saying, “One and one makes eleven.”– This is true in case of Startups. Startups succeed due to diligent efforts of the team, not due to single person’s efforts.
Be it the founders of Google, Flipkart or any other startups, you have always heard that they gives the credit of success to their team. Jack Ma, Founder of Alibaba, said that his team worked for 10 years like other companies work for 50 years. This shows it is the collective hard efforts of his team and him that led to success of Alibaba.
Finance is the backbone of the business. Funding is needed to expand and diversify the operations of the business. But yes it isn’t hard to get investors to your startup if the idea is unique, strong, and sustainable and of course problem solving.