Globally nearly 90% startup business fails. Only 10 out of 100 sustain at last. What leads this 10% startup to success?
You certainly wonder that, how facebook has become facebook within this short-time? How Google has conquered the empire of on-line world? How amazon has become a overnight success? How some businesses become so successful within few days (literally) and some fail so rapidly? Why God is crazy about some startups and so dull to others?
And you similarly wonder when you hear that, the global rate of startup business failure is around 90%. And in Bangladesh, the rate of Startup failure is even higher. Your astonishment is quiet okay until you entered into the real world. Entrepreneurs often start out of emotion with nothing but motion. Like mothers never judge their children critically entrepreneurs seldom scrutinize their business ideas. Because of that, most of the time startups ends up with losing handful amount of money.
What actually leads startup business to success?
Number of research has been done globally on Startup success to find the magic point why some startups become successful and some fail. Here is a checklist on what leads startup Business to success:
Idea: In May 2006, Google launched ‘Google Notebook’- a product allowed people to clip information from the web and store it in digital ‘notebooks’ but not enough people felt the service was all that useful and closed in January 2009.
Then, In October 2007 Google acquired Jaiku- a micro-blogging site like Twitter. Basically the idea was a derivative idea of twitter and ultimately failed and it too stopped in January 2009 by proving the truth that, worthless anything would not survive.
We are living in the age of idea not product. Apple does not sell phone it sells iphone-an idea. Seth Godin said the stuff better in his amazing book Unleashing IdeaVirus- “It’s not the shoe but the idea of Air Jordan sneakers,, that permits Nike to sell them for more than $100. It’s the sizzle, not the fit. The idea makes Nike out-sized profits. And Nike knows that idea won’t last long, so they better hurry—they need another ideavirus,fast.”
So, lets get back to work. Start with a killing idea and win the rat race.
Marketing:Most startups don’t win with better product because everyone else in market is claiming the same, nor better customer service or manufacturing can save you from failure because your competitors also can afford them. You win with better marketing, because marketing is about spreading ideas, and ideas are all you’ve got left to compete with.
To survive your marketing strategy must be effective, and less costly. So, think different, creative and act accordingly.
Location: In USA if you want to start a Tech-firm, then your location is Silicon Vally, if you start it in anywhere else, you are dead. Likewise, in Bangladesh, if you want to start a consultancy firm your location is Dhaka. Most startup firms those fail are because of Bad location. Neilkhet is not the place for KFC type restaurant its Dhanmondi. Select your place carefully. Selecting right location is a matter of discernment then anything else. So, take time and decide wisely.
Story: If your business does not have a worth telling story, better you don’t start it. Before starting your business think about your story. Think whether it can draw people’s attention, can convince people or not. A worth telling idea is critical for startup success.
Networks: Modern businesses are all about connection. Your connections are your mentors, your suppliers, your investors, your marketers and whatever you want. Check your network. Do everyday some networking job- at least connect with one new people.
People: A committed and competent startup team is critical for startup success. Before going to battle filed keep your soldiers ready. Get great people. Sell them vision. Share your dreams with them. Share stock and wealth. Make them true owner of the company and then go and make something happen.
System: Most startup business begin out of system. At the beginning it is quiet okay. But worse things begin when after a certain time startups failed to come out of informality trap. So, from earlier, keep your eyes on developing your system. For every single task make someone exclusively responsible. Be structured but flexible. The best thing about developing a system is that, everybody out there got what they actually need to accomplish and when. It makes responsibility & authority clear.
So, give some serious thought on developing system and live long.
Finally, start for love not for money. People often go bored with money. After a certain time you really can’t live on money. Or it may happen that, when your business can’t produce enough money that early or that amount you want it to be, you may certainly loss hope and give up. Better is, run for love & keep doing what you love to do and money will follow.
To move on we need some cause greater than money and how much you love your cause is actually make real difference in long run.