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Why Do Startups Succeed: 5 Reasons Why Startup Succeeds

Why Do Startups Succeed: 5 Reasons Why Startup Succeeds

According to a recent ILO study, almost seven out of ten workers globally are self-employed or own a small business. Micro-employed or self-employed account for more than 80 per cent of employment in South Asia. The data is interesting, particularly for business enthusiasts. Still, I can't help but worry about the failure and disappointment that most small business owners included in this data will experience because, on average, 9 out of 10 startups will fail. The ones that survive and succeed are the ones that successfully appeal to the audience's emotions and needs.

So I started looking into what makes a startup successful, and while doing so, I stumbled upon one of Bill Gross's TED Talks. IdeaLab was founded by Bill Gross, who has invested in numerous businesses. According to Bill Gross, timing is more important than any ground-breaking plan, team, business model, or good funding. 

Here are a few questions you should ask yourself to determine whether or not your startup will be successful. 

1. Is it the right time?

Many people would assume that execution is the primary factor in a startup's success, but Bill contends that timing is the most important factor. It is important to launch your product at the right time because it can have a significant impact on your company. 

None of the successful products launched in the past would have been successful without proper timing and planning. No matter how audacious and unexpected the launch may seem to the general public, careful planning will guarantee a successful launch. 

2. Is your idea unique?

"Ideas mean nothing," You might have heard someone say something similar in the past, but I sincerely don't think that's the case. Even a young bird needs to picture itself flying before it can take flight, and similarly, you need to have an idea and a vision to begin. Your goal should be to help people. You should have domain expertise, and you should try to either come up with solutions that have never been thought of before or, at the very least, improve on existing ones. 

Instagram gave users a platform to show off their skills and attract attention by allowing regular people to follow the celebrities they find inspiring. They did this in the era of smartphones while considering the appropriate timing and people's exposure to the internet, which made a significant difference. 

When following a trend, your ideas must be unique. You cannot simply copy what other people are doing and expect to succeed; it must be distinctive in some way. 

3. Ways to execute an idea with the power of teamwork?

"Ideas mean nothing unless you properly execute them." According to a study, people have 6,200 ideas or thoughts daily. Ideas are wonderful, but while everyone has them, very few people begin working on them, and even fewer people bring their ideas to fruition. This is because executing an idea is hard. I could think about "why startups succeed" all day long, but gathering the necessary information and writing it for the audience is difficult. 

Likewise, we always need a step-by-step manual for how to put our ideas into action because doing so frequently involves experimentation, lots of trial and error, failures, and obstacles. 

A strong team can aid in effectively executing your ideas, but developing a team that can function as a single unit presents another challenge. Maintaining a team and inspiring them to give their best daily takes work and effort. 

Good workplace dynamics, an environment that fosters growth, and, most importantly, supportive leaders encourage good employees to stick around and support your goals. 

4. Do you have a good Business Model?

"My kind of business model is the Beatles. They were four guys who kept each other's negative tendencies in check". This famous quote from Steve Jobs sums up a business model perfectly. When you start a business, you must have some kind of business model, but it's important to understand that once you see that your product is needed and desired by customers, you are free to change and develop it.

5. How are your Fundraising Skills ?

Cash flow is any business's lifeline, which means businesses are ruined with inadequate capital. If a startup has enough money to operate its business, it will be successful over the long term. Most startups still need to be funded because they don't demonstrate a respectable growth rate or consciously decide not to accept investor money.