Successful startups are built with careful planning, effective budgeting, and resource management. Entrepreneurs who understand the importance of available resources tend to use them to the best of their ability.
In my experience, startup founders succeed by fearlessly testing hypotheses, recognizing the importance of promotion, and investing in marketing campaigns and lead-generation activities. A successful startup founder often can become a charismatic figure – someone driven by their ideas and enthusiastic about the business concept, even if it initially appears complex.
As for the startup team, I’ve observed that promising projects often start with a small, close-knit team, motivated more by a passion for the idea than immediate financial gain. Initially, the team usually handles all tasks on its own. However, delegation becomes essential to conserve resources as the company grows and critical processes are established.
It’s worth noting that managing a startup involves inherent risks. Depending on where you look, it’s often heard that 75% to 90% of startups fail. In many cases, however, the seeds of failure are sown long before the startup launches its first product. Careful analysis can reveal both the strengths and weaknesses of an idea, but sometimes, entrepreneurs overlook this crucial step.
Recognizing when an idea is not worth pursuing is valuable for a startup founder. Having the courage to move on when a brilliant idea is incorrect can be decisive. Some entrepreneurs understand this from the outset, while others struggle to abandon their initial vision.
Tips for Startup Beginners
So, how can you mitigate the mentioned risks and increase your chances of success in a startup? Here are some suggestions. Keep in mind that this is not an exhaustive list of dos and don’ts, but it can be helpful for entrepreneurs at the beginning of their entrepreneurial journey:
- Seek Innovation: Look for niches where you can offer improvements that make customers’ lives easier. For example, consider companies that provide note-taking or transcription services to complement video conferencing platforms like Zoom.
- Know Your Competition: Directly or indirectly, there’s always competition. Successful startups understand who they’re competing with.
- Don’t Rely on Luck: Building a successful business is not a matter of luck or intuition. If you have an idea worth attention, take proactive steps to find resources and opportunities to present it and attract investments.
- Keep It Simple: Startups often focus too much on functionality and seek perfection before defining a target user segment. Simplicity can be a virtue. Present the core idea you intend to sell and add features as you progress.
- Understand Processes: A manager must clearly understand the business process. Knowing how things work allows you to assess the idea’s viability, identify risk areas, and deal with many of them (because eliminating all risks is simply impossible).
- Share Responsibilities: While a team with various skills (finance, law, technology, management) is beneficial, these roles are often performed by different people. Don’t take on too many responsibilities, which can lead to problems.
- Stay Calm: Running a startup can be stressful, but keeping a cool head is essential. Don’t let minor issues overwhelm you, and remain composed in front of your team.
Dealing with the Unexpected
The year 2020 taught us that unforeseen circumstances can be determinative. However, startups involve dealing with probabilities. At the beginning of the journey, you know little beyond an idea, and it’s highly likely to work. You’ll likely find customers. They’ll probably pay for your product.
Chances are rarely as uncertain as 50/50. If the chances of success drop below 50%, it’s often wiser to explore other ideas. While the excitement of the entrepreneurial journey or the desire to prove a point can be captivating, these factors alone are not enough to start something significant.
Following the seven tips above, you can position yourself better for success when you discover your next big idea and embark on your startup journey.
